1) The Team

Recognizing that the vitality of a startup largely depends on its team, the Team module of AI Start focuses on assessing the human element behind a startup.

Drawing on data from reputable platforms such as LinkedIn and Tracxn, we considered various factors such as years of experience in different roles, educational qualifications, and years spent in industry-specific roles. Further, the collective experiences of individual team members were compiled to provide a sense of the team's overall depth in different roles and fields. This allows us to gain insights into the team's combined experience, skillset, and educational background.

2) Traction and Financial

The Traction and Financial module of AI Start is all about understanding a startup's financial health and market traction. This section dives deep into vital financial indicators like revenue and revenue growth.

Additional metrics like Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), and Annual Recurring Revenue (ARR) are intended to be part of this financial evaluation in future additions. The goal is to offer insights into the startup's financial status, growth prospects, and market presence.

3) Product and Market

The importance of balancing a strong product idea with a well-defined target market is crucial for any startup's success. It's with this understanding that we concentrated on the Product and Market module.

We considered numerous factors for this module, including the level of consumer interest in the product, the state of the product, the competitiveness of the market, the market being targeted, and feedback on the product. These considerations are aimed at providing a clearer picture of the product-market fit, product scalability, and the potential for success in the targeted market.

4) Impact

The Impact module represents the ethos that startups can contribute significantly to addressing global challenges.

This unique module measures a startup's alignment with the United Nations Sustainable Development Goals (SDGs). By scoring their alignment to these global goals, the Impact module encapsulates the potential of a startup to make a meaningful impact on the world.

Altogether, these four modules embody the approach of AI Start. Its design is a testament to the potential of combining meticulous analysis with the fluidity of the startup landscape. In an era shaped by dedicated entrepreneurs, our tools need to evolve to match their pace, and AI Start represents that evolution.

To learn more about AI Start, contact Zeb Hastings at [email protected].

This blog post is part of a series on AI Start, our AI-powered project to reimagine investment analysis.