Understanding the Startup's Business Model: What problem is the startup trying to solve?
Article in collaboration with: Tomer Bariach The first step in conducting due diligence on a startup is to delve into the core of its business model. Identifying the underlying problem that the startup aims to solve is crucial in determining its potential for success. By understanding the problem statement, investors can assess the relevance and significance of the solution being offered by the startup. Examining the Market Need: A key aspect of understanding the startup's business model is evaluating the market need for the product or service. Is there a clear demand for the solution that the startup is providing? Conducting market research, analyzing industry trends, and assessing competitor offerings can help in gauging the market need and potential acceptance of the startup's solution. Reviewing Financials: Is the startup financially viable? Reviewing the financials of a startup is a critical step in assessing its overall health and viability. Investors need to analyze