There are several criteria for evaluating companies. Here at Legend Venture Partners, we ask the following questions:
• What does the company do, and how do they differ from their competitors.
• What is their growth rate, and how does that compare to the sector as a whole?
• How does the company generate revenue?
• What is the total addressable market (TAM)?
• What is the overall marketing strategy?
• How many customers do they already have, and who are those customers?
• Do the members of the team have strong market knowledge/ experience?
• Who is on the company’s Board of Directors?
• What needs does the company fulfill and/or what problems do they solve?
After answering all these questions, we look at financing, the price of shares, who has invested in the past, and what the company’s overall financial picture looks like. From there, we can determine if the company is worth investing your hard-earned money (and ours) in.