Evaluating an investment
The case rests on assumptions that are plausible individually and have never been listed together.
What this decision usually turns on
- Assumptions the case depends on
- Sensitivity to the weakest assumption
- Time to return
- Concentration risk
- Alternative uses of the same capital
These are a starting point. The first thing Phronexia does is help you decide which of them actually matter here, and what weight each one carries.
Who should be in it
- Finance lead
- Founders
- Board
Related decisions
Allocating capital across bets
Split capital across competing internal bets with the assumptions behind each one written down.