Deal Breakdown: Evaluation Rubric & Checklist
Deal Breakdown: How Tech Operators Evaluate Angel Deals with No Revenue
Pre-revenue angel investing can feel like guesswork without a structured framework. When evaluating pre-seed startups before financial metrics exist, top tech operators look at execution speed, distribution velocity, and founder-market fit.
The Pre-Revenue Evaluation Framework
Founding Team Velocity: How quickly did the team ship the MVP? Do they possess complementary engineering and go-to-market skill sets?
Problem Urgency: Is the product solving an urgent, mission-critical workflow rather than a nice-to-have?
Unfair Distribution Advantage: What proprietary access or distribution edge does the team possess to acquire their first 100 enterprise pilots or 1,000 users?
Product Architecture & Moat: Is there defensibility via proprietary data loops, network effects, or switching costs?
Operator Evaluation Checklist
[ ] Spoke directly with at least 2 potential or pilot customers
[ ] Verified technical feasibility and architecture
[ ] Confirmed founder equity vesting schedules
[ ] Validated runway gives 18+ months to find product-market fit
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Disclaimer: Educational content only, not investment advice.
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