Anonymous FinTwit expert @borrowed_ideas is a Capsule favorite. One of his/her recent articles gave us some insight into how he/she thinks about evaluating potential companies before investing:
1. Why does this business need to exist, and how does it make money?
2. How big is the market, and how will the economics of the industry change?
3. How do other players make money in this industry? Why is there any difference in their economics?
4. Who has the most flexibility/adaptability in this industry to capitalize on any potential turbulence/economic downturn?
5. Who is the founder(s)/CEO, and what's his/her story?
Intrigued? You can read
more about how he applies this checklist to a South Asian grocery delivery startup: Chaldal.com out of Bangladesh.