Key Considerations in Evaluating Startup Potential

Written by: Gabriel Barcaru

What key attributes should you look for when evaluating startup potential?

In evaluating startups, it’s essential to prioritize certain criteria before delving deeper into exploration. The methodology centers around assessing key metrics related to individuals rather than solely focusing on the idea or business concept. Individuals are pivotal in shaping the trajectory of startups, as these ventures entail journeys of growth and exploration. Qualities such as a positive mindset, discipline, analytical acumen, and emotional resilience are highly valued. While other skills can be developed over time, these foundational attributes are crucial for success in navigating the challenges of startup dynamics.

What are some common early-stage mistakes that startups tend to make?

In the initial stages of a startup, it’s common for entrepreneurs to be fuelled by their passion, which can lead to actions based on their existing knowledge and beliefs. While diving into action may provide a sense of progress, founders should exercise caution. Without proper guidance and unbiased judgment, they risk depleting resources and becoming entangled in a challenging growth journey. This can lead to anxiety and impulsive decisions. Venturing into uncharted territories without prior experience should be done with the support of experienced advisors.

What trends have been noticed in startup directions recently?

While there isn’t a particular direction that’s universally advised for startups, there are noticeable trends. Many startups are prioritizing solutions to substantial human and societal issues, often leveraging technology to facilitate their initiatives. Those contributing to advancements in artificial intelligence and digital technology are often viewed as highly investible and future-proof. Moreover, over the past decade, both B2B and B2C startup models have evolved, offering increasingly sophisticated solutions tailored to address market and consumer needs more effectively.

Which industry do you find more successful to operate in based on the current landscape?

We are industry-agnostic — which means we can support any startup from any industry. But the ones that benefit more from our capabilities are the ones operating in the B2C arena. Compared to the B2B models, where most of the time there is a system or a process that makes decisions, in B2C business models, people are the ones that make purchase decisions. Here is where you can find the value add by measuring human behavioural metrics, understanding why people do what they do, and helping startups transform growth from a costly trial-and-error exercise to a predictable and measurable journey.

What are the top traits that startups should have to be more appealing to investors?

Investors put their money in people and their ideas if the growth is realistic, measurable, and scalable. We meet founders from 20 years of age to 60 years of age. Honesty is one of the things we respect the most when we meet them. Being honest helps others to build trust. Another focus is on scalability — scalability is not about handling the present opportunities but also future opportunities; it is about analyzing risk as well, without requiring significant rework of the entire business system.

Do you have any piece of advice for startups that are trying to navigate the current environment and introduce themselves to investors?

Startup businesses and their teams must have a scalable business model and a simple, functional strategy to be ready to meet their investors — they should master the pitching, and negotiation, have a well-structured deck, and understand their ideal investor profile. Founders should have answers for their legal compliance, business model, competition, market, marketing, sales, operations, and risk. When meeting their investors, founders should be ready to balance the need for capital and the offer and negotiate for a win-win situation.

About the Author:

Gabriel Barcaru is the founder and one of the managing partners of BRIDCON , a business and management consulting company based in the UK.

In this article, Gabriel is sharing insights into the significance of the people involved in startup journeys and the purpose of the startups. As a business mentor, strategic advisor and investor, Gabriel addresses the top traits that start-ups must have to attract investors.