Questions to ask when investing in a startup business

1. Does the management team have the skills to execute the idea?

2. Do the founders get along?

3. Does the team understand its market?

4. What is their motivation?

5. Is the lifetime value of customers significantly greater than the cost of acquiring them?

6. How big is the potential market?

7. What are the financial projections?

8. How did the business come up with its valuation?

9. What other capital requirements does the business have?

10. How healthy is cash flow in the business?

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