Angel Investment Evaluation Framework

Prompt

Evaluate the following startup as a potential angel investment opportunity.

Startup details:
- Company name: [NAME]
- Stage: [PRE-SEED / SEED / SERIES A]
- Industry: [SECTOR]
- Founding team: [BACKGROUNDS]
- Product/service: [DESCRIPTION]
- Revenue (if any): [AMOUNT]
- Valuation: [CAP OR VALUATION]
- Amount raising: [TOTAL ROUND SIZE]
- Check size requested from me: [AMOUNT]
- Lead investor (if any): [NAME]

Conduct an evaluation:

1. **Team Assessment** — Is this team capable of executing? Domain expertise, complementary skills, prior success, red flags.

2. **Market Analysis** — Is the market large enough? Growth rate? Is this a vitamin or a painkiller?

3. **Product/Solution Fit** — Does the product solve a real problem uniquely? What's the defensibility?

4. **Business Model** — How does it make money? Unit economics at scale. Path to profitability.

5. **Traction** — What proof do they have that this works? What are the key metrics and their trends?

6. **Competitive Landscape** — Who else is doing this? What's the moat?

7. **Deal Terms** — Is the valuation reasonable? What are the key terms (pro-rata, board seats, information rights)?

8. **Return Analysis** — Scenario analysis: what does a 3x, 10x, and 30x outcome look like given my check size and this cap table?

9. **Due Diligence Checklist** — 10 questions to ask the founders before investing.

10. **Invest / Pass Recommendation** — With key reasons either way.