Deconstructing VCs’ Decision Making Frameworks

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T #1 — Team

1. “There is always a secret at the core of every business”

2. Purpose

3. Leaders + Managers + Doers

4. Decision Making

5. Learning curves

Total T#1 = Secret, Mission, Leader + Managers + Doers, Decision Making, Learning Curves / 7

T#2 — Tech (aka Product)

A screenshot of an old public product roadmap at Front

1. Product Picker

2. 10x better AND cheaper

3. Fast product iterations

4. How critical is your product for your (future) customers?

Total T#2 = Product Picker, 10x Better AND Cheaper, Speed of Product Iteration, Criticality of your Product / 6

T#3 — TAM (aka Market)

1. Large markets

2. Feature/product/real company (aka how high is the ceiling?)

3. Optionality / Macro trend

Total T#3 = $ Bn Market + US, Real Company, Optionality / 4

T#4 — Traction (aka Growth)

1. Market timing: “Is your market in pull or push mode?”

2. Distribution advantage

3. Avoid the graveyard of low LTV and high CAC

Total = Pull/Push + Network Effect + Virality + Potential for channel partners + Healthy Unit Economics at scale = /6

T#5—Trenches (aka Defensibility)

1. Network effects

2. Data network effects

3. Superior technology / protected IP

4. User or Data lock in

5. Brand or Mindshare

6. Economies of scale

Total = Network effect, Data Network Effect, Superior Technology, User or Data lock-in, Brand, Economies of Scale = /7

Total

Team = /7

Tech = /6

TAM = /4

Traction = /6

Trenches = /7

Total = /30

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Point Nine Land

Stories from the P9 team & portfolio companies

Louis Coppey

Written by

VC @pointninecap, @MIT grad, writing about #VC, #SaaS, and #Automation.

Point Nine Land

Stories from the P9 team & portfolio companies