How to Evaluate a Startup

Startup hypothesis: I have a tentative solution to a problem that can be tested.

Phase 1: Make sure your problem has at least one or multiple factors:

1. Is it urgent? One that needs to be solved quickly.

2. Is it expensive to solve? If you're able to sort of solve it, then you can charge a lot of money potentially?

3. Is it mandatory? People have this problem, and they have to solve it.

4. Is it frequent? Is it a problem that people are going to encounter over, over, and over again, and often in a frequent time interval?

Phase 2: Make sure you have these factors:

1. Motivation: I have this problem and I need to solve it.

2. Trigger: Other people have this problem and they need to solve it too.

3. Ability: You have the ability to solve the problem.

Phase 3: The ideal problem:

1. The problem is being experienced by 1M+ people

2. It is growing at 20%/yr

3. The problem needs to be addressed right now

4. Big market

5. Law change

The most important thing is not to look for a solution. Fall in love with the problem.