How to Evaluate Startups

Evaluate Startups

One of our goals at Capital Pilot is to open the world of early-stage tech investing to more people. This includes both founders and investors. We want to give more people the opportunity to get involved with and invest in great startups. Critical to this is arming people who are new to this world with the tools and resources to make smarter investment decisions.

Part of how we do that is by screening and vetting opportunities before they get to end investors. We want to be the place investors come to find a diverse selection of validated investment opportunities. As part of our screening process we also give startups an action plan for how they can improve their chances of achieving investment by improving not only their pitch, but more importantly their entire business proposition.

In the Capital Pilot spirit of transparency and collaboration we are excited to share with you the criteria that we use to evaluate every company before taking them to market. There are a few reasons for doing this. First - we think every investor should be doing their own research and evaluation to check our work. Knowing what we have done is therefore a good start. Second - we want more founders to understand these criteria so they are better prepared. The criteria are also shared as part of the self-evaluation which startups are encouraged to do as part of our process. Third, we are trying to de-mystify the investment process. It’s mainly common sense. Let’s treat it that way. Finally, we want your input. Let us know what other criteria you use to evaluate startups. Help us get better at finding the best opportunities and providing back better advice to founders.