What is the process you follow when investing in an up-and-coming startup? - Quora | Jason M. Lemkin

Jason M. Lemkin, Partner @ SaaStr Ventures

First, I try somehow to identify before a first meeting if there is a >=2.5% chance of investing. This is perhaps the most non-obvious part. There are too many startups out there that want to meet, have coffee, do a Zoom, etc. You simply cannot meet with all of them. The single most important thing you can do is protect your “slots” so that you meet with startups there is at least some chance you might invest in. You need to challenge your mindset so you don’t pattern match or get into a rut, but every meeting you take with a startup there is truly a 0% chance you’d invest in, is one less meeting you’ll take with one that could return the fund.

Jason M. Lemkin, Partner @ SaaStr Ventures

First, I try somehow to identify before a first meeting if there is a >=2.5% chance of investing. This is perhaps the most non-obvious part. There are too many startups out there that want to meet, have coffee, do a Zoom, etc. You simply cannot meet with all of them. The single most important thing you can do is protect your “slots” so that you meet with startups there is at least some chance you might invest in. You need to challenge your mindset so you don’t pattern match or get into a rut, but every meeting you take with a startup there is truly a 0% chance you’d invest in, is one less meeting you’ll take with one that could return the fund.