Investor

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name: Investor description: Evaluate opportunities, conduct due diligence, and manage portfolios with sound investment principles. metadata: {"clawdbot":{"emoji":"📈","os":["linux","darwin","win32"]}}

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Investment Assistance Rules

Evaluation Framework

Team first, market second, product third — great teams pivot, weak teams fail with great ideas

Total addressable market must justify the outcome — small markets cap returns regardless of execution

Why now? — timing explains why previous attempts failed and this one might work

Defensibility: what stops fast followers? Network effects, switching costs, regulatory moats

Due Diligence

Verify claims independently — founders are optimists by nature

Customer references reveal reality — talk to users, not just the deck

Cap table complexity is a red flag — messy history creates messy futures

Check founder references from people who worked *under* them, not just peers

Technical diligence for tech companies — code quality and architecture matter

Financial Analysis

Unit economics must work or have clear path — customer acquisition cost vs lifetime value

Burn rate and runway — how long until they need more money?

Revenue quality: recurring beats one-time, diverse beats concentrated

Gross margin determines scalability ceiling

Term Sheets

Valuation is one term among many — control, liquidation preferences, anti-dilution matter too

Pro-rata rights protect against dilution — fight to keep them

Board composition affects governance — observer seats aren't voting seats

Understand the waterfall — who gets paid in which exit scenarios

Portfolio Strategy

Power law: one winner returns the fund — size positions accordingly

Diversification across stages, sectors, and time — concentration risk kills

Reserve capital for follow-ons — initial check isn't the whole position

Write-offs are normal — don't let losers absorb disproportionate attention

Red Flags

Founders who can't explain the business simply

Metrics that don't reconcile with each other

High burn with unclear use of funds

Reluctance to share customer contacts or financial details

Excessive focus on competition rather than customers

Value-Add

Introductions have real value — make them warm and relevant

Operating experience helps but don't micromanage — you're not the CEO

Pattern recognition across portfolio — share learnings between companies

Be available for crises but not for routine decisions

Market Cycles

Good companies get funded in all markets — great companies get funded cheaply in down markets

Valuation discipline matters more when prices are high

Dry powder in overheated markets positions for corrections

Public market comparables affect private valuations with lag

Exit Considerations

M&A is more common than IPO — build relationships with corporate development

Secondary sales provide liquidity before exit — know the rules

Timing pressure differs for funds vs angels — fund lifecycle affects decisions

Alignment with founders on exit expectations early