

Ask HN: How to assess an application for investing purposes? - calgaryo

A friend of mine intends to invest in a SW company. He's asked me to review their flagship. I'll probably get a chance to look at a demo, and maybe a sneak peek at the code.<p>Anyone has similar experience or suggestions about what I should be focusing on? (Architecture, Maintainability,  Security, Test Coverage, etc...)<p>Edit: spelling.
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jaddison
Does the product solve a problem?

If so, what is the problem?

Does the problem exist for a large enough number of users?

Are those users likely to be paying users (or a sufficient percentage of
them)? Or are there other relevant revenue models that exist - hopefully the
company is aware of them?

The product isn't really the determination of whether the company is
investment-worthy or not; it's whether the problem it is meant to address is
inconvenient enough for users to WANT to get the product.

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jmount
I would say the team and market need is more important than the code (since he
is investing in the company, not outright buying the IP).

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skmurphy
Do they have paying customers? Talk to them.

Do they have prospects evaluating it. Talk to them.

Can your friend supply expertise or connections in addition to money?

