Jeremy Tan's "Thriving Triangle" to startup investing

VCs consider MANY criteria before investing.
 
But...nobody tells you what those are.
 
These 3 major factors are quite telling and help form an investment case:
 
(We consider these in our Series-A fund)
 
🟥 1/ Founders 
 
One of the biggest considerations is the founders behind it.
 
This can make or break even the best businesses.
 
Some factors we consider in founders:
 
→ Strong conviction, but willing to change when faced of new info
→ Should have skin in the game (e.g. their own money)
→ Storytelling and people skills - for fundraising, hiring etc.
→ Possesses commercial acumen and curiosity
→ Fast, coachable learners, that have the ability to listen
 
It’s tough to hire a replacement for founders.
You’ll rarely find someone more invested in the business.
 
I’d say this is the #1 consideration.

 
 🟦 2/ Market
 
Building where no one’s buying is an expensive exercise.
We seek companies that leverage favorable macroeconomic trends with long-term drivers.
 
→ Ripe for the adoption of technology
→ Customers with the ability to spend
→ Sizeable addressable market
→ Large ACVs with manageable sales cycles
→ e.g. SouthEast Asia growing 3-5% (more FDI than Japan/ similar with China)
 
When you pick the right market, the rest of the pieces fall into place more smoothly.

 
🟨 3/ Product 
 
Products when built right, can be a major growth driver.
If they find product-market fit early, capital helps scale that.
 
➡️ A - Painkillers, not vitamins
A ‘need-to-have’ for customers, the last to get killed off in tighter economic regimes.
 
➡️ B - Healthy unit economics
Long-term contracts, low churn, a clear pathway to profitability.
You’ll hardly find startups excellent in all three.
 
As early-stage investors at Series A, I’d prioritise Founders and Market over Product any day.
 
Here’s why:
 
- 🟥 Great Founders can pivot and adapt when the market changes.
- 🟦 Poor Market conditions limit the upside despite having strong founders and product.
- 🟨 Products are beholden to what the market needs. Technical talent can be hired to build down the line.
 
Thoughts?