44 minutes into this video:-
– People: How will the founding team work together? Typically one of the founders will leave which is why all their shares have to vest so if one leaves, their shares are not “dead” and can be allocated to others. The VCs can recruit managers and people so the rest of the team is not a risk.- Market: is there a global market for the product? Are there signs of market traction? It is incredibly expensive to remove this risk (ie by advertising), “You don’t want to wrong about market risk”- Technical: quantifiable and can be assessed- Financial: can you raise enough money if the first three are correct? “Typically you can”. There is plenty of capital willing to finance new technologies which are addressing global markets.
The video is a production of Robert X Crigely. There is much more on his site.
Hat tip: Venture Hacks
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