The three elements behind my investment decisions.
Over the years, I've developed a checklist that guides how I decide to make an investment.
Here are the 3 parts. 👇
1️. My business checklist.
📌 Product
Does this product make sense for what it aims to achieve?
Does it address a real need or solves a significant problem?
If the answer is yes, then I see potential.
📌 Team
Are these the right people to build it?
I look at the team behind the product.
Do they have the experience, skills, and capacity to bring their vision to life?
I need to trust the founders' ability to execute.
This is often what makes or breaks the company.
📌 Market
Lastly, I assess the market potential.
Is there a market for this product?
Is there demand for this product?
How big is the market, and can it grow?
Even if the product & team are exceptional, the absence of a viable market can affect their growth.
2. My YOLO checklist.
📌 Am I excited about this?
📌 Do I like the founder enough to be in this journey with him/her?
📌 Does this sound fun and/or exotic?
3. “Finding the right deal” checklist.
📌 Size check and diversify
How does this investment combine with the rest?
In terms of check size.
In terms of industry and market diversity.
📌 Is there a green light from other investors?
Have other more qualified investors than me given the green light?
I don't have time, energy, or capacity to look at most deals in depth nor am I an expert in most industries. So it helps a lot when professionals have performed a thorough due diligence.
📌 Understand that I don’t need to be in every deal.
This is more of a reminder.
It is OK, if I miss out on a deal.
It is even OK to miss out on a great deal.
It’s not the end of the world.
These elements are the foundation of my investment decisions, and what brings me clarity.
Newsletter
Sign up for Ricardo's newsletter and receive updates and tips today.