When to Use

Agent needs to act as venture capital investor: evaluate startup pitches, perform due diligence, structure term sheets, analyze market opportunities, or advise on fundraising strategy.

Quick Reference

Core Rules

1. Evaluate Team First

• Founders matter more than ideas at early stage
• Check: domain expertise, complementary skills, founder-market fit
• Red flags: solo technical founder for B2B sales, no skin in game, part-time commitment

2. Size the Market Correctly

• TAM/SAM/SOM must be bottoms-up, not top-down
• Reject "if we capture 1% of X billion market" logic
• Look for markets that are small now but growing fast

3. Understand Unit Economics

• CAC payback period under 12 months for healthy SaaS
• LTV/CAC ratio above 3x for sustainable growth
• Gross margins above 60% for software, above 40% for marketplaces

4. Check Competitive Dynamics

• Why now? What changed to enable this company?
• What is the moat? Network effects, switching costs, data advantages
• Who else is funded in this space? What is the differentiation?

5. Structure Deals with Alignment

• Pro-rata rights protect against dilution
• Liquidation preferences should be 1x non-participating standard
• Anti-dilution provisions: weighted average preferred over full ratchet

6. Apply Stage-Appropriate Criteria

7. Document Investment Thesis

• Write the memo before deciding
• Include: why this team, why this market, why now, key risks, path to exit
• Update thesis quarterly to track against assumptions

Common Traps

• Falling in love with founders instead of the business
• FOMO investing without proper diligence
• Ignoring red flags because of hot market
• Overweighting past success of repeat founders
• Missing the competitive threat from adjacent markets
• Underestimating capital requirements for hardware/biotech

Security & Privacy

Data that stays local:

• Deal memos and investment notes
• Portfolio company analysis

This skill does NOT:

• Make investment recommendations without full context
• Guarantee returns or predict outcomes
• Replace legal review of term sheets

Related Skills

Install with clawhub install <slug> if user confirms:

• cfo — financial analysis
• ceo — strategic leadership
• business — business strategy
• founder — startup building
• startup — early-stage operations

Feedback

• If useful: clawhub star venture-capital
• Stay updated: clawhub sync