Angela LeeFounder (37 Angels)Assistant Dean (Columbia Business School)

High Impact Diligence

Startup Extreme Norway

What do you look for in diligence?

Progress Price

People Problem

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What do you look for in diligence?

People• Domain expertise

• Team structure

• It factor

3

Progress Price

Problem

4

5

6

7

8

What do you look for in diligence?

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Progress Price

People

Problem• Market size

• Competition

• Customer insight

Words to watch out for…

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We’ve done no

marketing!

We only need to

capture 1% of the

market….

What do you look for in diligence?

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Price

People Problem

Progress

• Product development

• Business model

• Traction

• Valuation & exit

• Use of funds

• Deal structure

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Is there balance?

Progress Price

Current Focus Future Aspiration

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You ≠ customer

Would I

use this

product?

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Are they focusing on the right metrics?

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What metrics matter?

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What metrics matter?

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What metrics matter?

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What metrics matter?

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Terms you should know

CAC

CLV

MRR

ARPU

Churn

NPS

Burn rate

Run rate

16 Startup Metrics (Andressen Horowitz)

What do you look for in diligence?

Progress• Product development

• Business model

• Traction

Price• Valuation & exit

• Use of funds

• Deal structure

People• Domain expertise

• Team structure

• It factor

Problem• Market size

• Competition

• Customer insight

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37angels.com/resources

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Thank You

@37angelsNY

@angelawlee

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