Home

How are startups being evaluated?

We’re evaluated based on the actual problem that we were solving and the market need. In my first startup, we decided to create a product but the problem was not there. That's where we began a spiral of failures. In the second startup, we had a problem, but first we explored whether it was a market need or not. Once we found out that it was a market need for a lot of people, that was a proven concept. I do invest in startups as an angel investor here, and the first thing that I look for is whether there is a market need. The need may not be there right now, it could be in five years’ time. But in that case, I also look at whether the team is capable enough to handle the four or five years of struggle that they will have to go through.

21 views
2 comments
0 upvotes
Related Tags
Anonymous Author
We’re evaluated based on the actual problem that we were solving and the market need. In my first startup, we decided to create a product but the problem was not there. That's where we began a spiral of failures. In the second startup, we had a problem, but first we explored whether it was a market need or not. Once we found out that it was a market need for a lot of people, that was a proven concept. I do invest in startups as an angel investor here, and the first thing that I look for is whether there is a market need. The need may not be there right now, it could be in five years’ time. But in that case, I also look at whether the team is capable enough to handle the four or five years of struggle that they will have to go through.
0 upvotes
Anonymous Author
Our customers are primarily judging us based on features and price because they're not very technical. Our typical customer will often be one to two employees, so the cost is a big part of their business. And they are often building their business completely on our platform, so they're very sensitive to things like downtime or bugs because those things affect their bottom line. Resilience and keeping things bug-free count big in that sense. We do have a few enterprise customers that throw us in a completely different way. It's a particular challenge for us because when an enterprise comes along, you’re asked all sorts of questions that you don't normally hear, but it’s a great logo to have on the customers page. Our normal customers don't care about ISO 27001 certification, for example. I don't have a lengthy form that you need to fill out every single time. It's challenging to know when to follow your instincts as to where the market will lead, or whether you should divert resources for this big customer. And the sales process for an enterprise customer is considerably longer and a lot more involved. The actual delivery of the end product might be the same as any other customer, but there are all these hoops you have to jump through for the sales process. They're a useful learning curve, but you have to be careful. We've gone down that road and we now realize that we shouldn't have taken on that kind of customer because it's not right for us; that's not where our business is going to go. 
0 upvotes