Early investors evaluate startups based on several criteria:
1. Team: A strong, cohesive, and experienced founding team is often a key factor. Investors look for founders who have a deep understanding of the industry and a proven track record. 2. Market Potential: Investors assess whether the startup is addressing a significant problem in a large market. A scalable business model is highly attractive. 3. Product/Service: The uniqueness and innovation of the product or service are crucial. Investors prefer offerings that have a competitive edge or solve a pressing need. 4. Traction: Metrics such as user growth, revenue, or strong initial customer feedback can indicate potential success. 5. Exit Strategy: Early investors often consider potential exit opportunities, such as acquisitions or IPOs, to gauge the potential return on their investment.