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Diligence · 5 min read

What we look for before model quality

The best signals show up before the benchmark curves get impressive.

Most investors overfit to a demo. We want to know whether the product already fits the user's day and the buyer's budget.

Workflow fit comes first

If a product does not fit an existing habit, the team will spend too much of the next year teaching people why they need it. We prefer products that land inside a routine the user already understands.

The company can still be ambitious. It just needs a first wedge that is easy to adopt and easy to explain.

Distribution has to be visible

We want to see how the first users arrive, who expands the account, and why the product gets shared internally. A beautiful model is not enough if the product has no obvious path to repeated use.

When the product is good, the team should be able to describe the next buyer, the next workflow, and the next reason to pay more.

Key takeaways
User routine beats benchmark theatre.
Adoption path matters more than one demo.
Distribution should be obvious from the first call.
Note
The team writes these memos to keep the portfolio thesis current and to share how the market is changing.