After an initial meeting with a founder, if an investor decides to dive deeper into the startup’s performance, there are two ways to go about it. You can either request specific KPI’s and analyses that you’d like to use to evaluate the business, or request that the founder share the company’s KPI dashboard.
While the former approach may make you feel better because of the sense of control that it provides over the process, I prefer the latter. The reason is that the company’s KPI dashboard shares how the founder evaluates and seeks to improve his business. Whether you agree with it or not, since the founder will be driving the business forward, understanding how he thinks about and measures the company’s performance is more important than how you would do it.
That said, after initially getting the company’s KPI dashboard, you should certainly ask for the additional KPI’s and analyses that you believe are necessary to evaluate the business. If these are different than what the founder presents, the ensuing debate might help you uncover the reasons for the differences.
The founder might convince you as to why his approach is better, you might end up helping the founder, or you might realize that your views are too far apart to partner.
Also published on Medium.