How Ready Are You to Invest in Canadian Startups?

Discover your real level of preparedness before investing in Canadian startups. In just a few questions, we'll evaluate your knowledge of due diligence, risk assessment, team evaluation, and financial planning. Get personalized guidance on the next steps to make smarter investment decisions and avoid costly mistakes.

When evaluating a startup opportunity, what's your current approach to assessing the founding team?

I focus mainly on the business idea and assume the team will figure it out. I check their LinkedIn profiles and maybe ask a few basic questions about experience. I research their track record, previous companies, and conduct reference calls with former colleagues. I conduct thorough due diligence on team depth, complementary skills, industry connections, and succession planning.

How do you currently handle due diligence before committing capital to a startup?

I rely mainly on my gut feeling and the founder's pitch. I ask for basic financial information and maybe review their business plan. I request financial statements, customer contracts, and cap tables; I speak with some existing investors. I conduct comprehensive research including legal documents, cap tables, customer interviews, competitive analysis, and verification of founder backgrounds.

What's your current strategy for managing startup investment risk?

I haven't really thought about risk management—I just invest in opportunities that excite me. I'm aware of risks but mostly rely on diversifying across a few startups without a formal strategy. I diversify across multiple startups and different stages, and I only invest what I can afford to lose. I have a documented investment framework with diversification across stages, sectors, and geography; I allocate only 2-5% per startup and maintain 5-10 year investment horizons.

How familiar are you with evaluating product-market fit and business model sustainability?

I'm not sure what product-market fit means or how to assess it. I know the concept but struggle to find concrete evidence beyond what founders tell me. I look for paying customers, retention metrics, and customer feedback to validate product-market fit. I systematically evaluate revenue model sustainability, unit economics, customer acquisition costs, and growth assumptions against market realities.