The Problem:
There is a continuous and growing stream of startups, making it impossible for me to help all of them in person, as an advisor and possible investor. There must be a way of selecting the startups that are of most interest to me. This has lead to the Double M Systems' Startup Sieve of Success.
The Solution:
The Startup Sieve of Success accepts all possible business ideas in at the top, applies a series of filters, and only the businesses that make it through are ideal for Double M Systems.
The Startup Sieve of Success
Auto-reject list:
Gambling, porn, religion, drugs, weapons, sex, marriage, dating, travel, government regulated, political, lifestyle businesses (franchises, restaurants/bars, car washes, laundromats, dry cleaners, coffee shops, etc). Hardware including all electronic devices, robots, airplanes, automobiles, space vehicles. Entertainment (games, movies, music). People under 21. Key team members living outside of San Diego area.
Reward Analysis:
How big? 50 million minimum. Hockey stick growth.
How fast? 36 months.
Risk Analysis:
How much? 10-250k seed round.
Team? Experienced. Committed.
Very Large Market
High Gross Margins
Sticky
Software
High Gross Margins
Sticky
Software
Internet
Health
Mobile
Viral
Community/Social
Helps people
Fun
Board Level Advisor
Extra points:
traction, sales, renewals
Success!
If your business doesn't make it through our sieve, even if it could be the next Apple, you will do well to look elsewhere for assistance. See our list of Resources for Entrepreneurs in the right column. ------->
Exception: If you do make it through the auto-reject filter, and yet fall short in one of the other categories, such as only being able to return 40 million instead of 50, then you are encouraged to be persistent in contacting us as we may be able to find a way to improve the numbers.
Great system Mike. Love it. Cheers JS @aussiwi
ReplyDeleteThanks for noticing, James!
ReplyDeleteIt will save me a lot of time and energy by not having to explain it every time. And by publishing what I am looking for, hopefully I can attract those businesses.