A Framework to Evaluate Startups

Startup investing is inherently different from investing in the public markets. There is no 10K or 10Q to review, no analyst commentary, no chatter on Seeking Alpha, there aren’t even discounted cash flows. How does one evaluate such a company? We discuss in this episode a framework to evaluate startups. We identify eight factors that can be used to evaluate a company: 1) Market risk 2) Competition risk 3) Execution risk (call it team risk) 4) Technology Risk 5) Regulatory risk 6) Financing risk 7) IP risk 8) Exit potential. We had also published a blog on this topic, that you might want to read: https://blog.propelx.com/conducting-diligence-on-deep-technology-startups/ Disclaimer: Propel(x) is a funding platform, not a Broker-Dealer. Securities are offered through Hubble Investments, member FINRA/SIPC and an affiliate of Propel(x). Private investments are highly illiquid and risky and are not suitable for all investors. Past performance is not indicative of future results. You should speak with your financial advisor, accountant, and/or attorney when evaluating private offerings. Neither Propel(x) nor Hubble Investments makes any recommendations or provides advice about investments.