👉 Investors are essentially evaluating the potential return on investment (ROI) and risks associated with a startup or business venture. They assess factors like market size, competitive landscape, team expertise, product-market fit, scalability, and financial projections to determine if the investment is likely to yield a profitable outcome. Their calculations often involve discounted cash flow analysis, net present value (NPV), and internal rate of return (IRR) to quantify expected returns relative to the investment cost. Investors also consider exit strategies, such as acquisition or IPO, and the time horizon for realizing returns. The goal is to identify opportunities that balance risk and reward, ensuring the investment aligns with their financial objectives and risk tolerance.
