What are the common mistakes people make when evaluating startups?
Some common mistakes include overestimating market size, ignoring team dynamics, and focusing too much on financials.
Can you elaborate on why overestimating market size is a mistake?
Overestimating market size can lead to unrealistic expectations and poor investment decisions, as it may not reflect actual demand.
What about team dynamics? Why is that important?
Team dynamics are crucial because a strong, cohesive team can adapt and pivot, while a weak team may struggle to execute the business plan.
How can I avoid these mistakes in my evaluation process?
To avoid these mistakes, conduct thorough research, seek diverse opinions, and focus on both qualitative and quantitative factors.
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