By Adam Sharp When I evaluate startup investment opportunities, I usually don’t pay too much attention to what industry the startup is in. Great startups can come from any industry. So the first thing I look at is traction. Traction usually means there’s some revenue coming in. But in some cases, it can mean other things.
When evaluating social media companies, for example, there usually isn’t much revenue at first. Most social media startups focus on getting as many users as possible during their early years. In cases like these, it’s important to look at active users, rather than total users.
My point is, the …read more
