Institutional investors conduct thorough due diligence to evaluate the potential of a startup. This includes: - Market Potential: Assessing the size and growth rate of the market the startup is targeting. - Business Model: Understanding how the startup plans to generate revenue and its path to profitability. - Team: Evaluating the experience and capabilities of the founding team. - Technology and Product: Assessing the innovation and competitive advantage of the startup’s product or service. - Financial Performance: Analyzing financial statements, projections, and key metrics to gauge the startup’s performance and potential for scalability.