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Venture
Analysis
Funnel
System Venture Analysis for Tomorrowโ€™s Leaders
www.armankassym.com
To provide a clear understanding of the venture analysis funnel
and its components.
To demonstrate how venture analysis can be strategically
used to maximize investment returns.
To equip investors with the tools needed to assess startups.
Objectives & Goals
Venture Analysis Funnel
CONJUNCTURAL ANALYSIS
EXTRAPOLATIONS, ANALOGIES,
SURVEYS, ECONOMETRIC ANALYSIS
SCENARIO ANALYSIS
NARRATIVE ANALYSIS
Narrative
Analysis
The initial and key stage of
venture analysis: helps
investors form a first
impression and evaluate a
startup's potential to attract
capital based on its
persuasiveness and market
appeal.
Conjunctural
Analysis
Second Level of Venture Analysis:
Investors move from general
narratives to a detailed assessment
of a startup's key attributes and
data. This step helps to systematize
information about the startup and
evaluate its current status and
growth potential.
Extrapolations,
Analogies, Surveys,
and Econometric
Analysis
Third Level of the Venture
Funnel: Investors use
comprehensive and quantitative
analysis methods to not only
assess the current state of a
startup but also to predict its
future development.
Scenario
Analysis
Final Stage in the Venture
Analysis Funnel: Investors
evaluate various future
scenarios for the startup to
assess its resilience to
external shocks and its ability
to adapt to market co nditions.
1.Time and Resource Costs: Full application of the funnel
requires significant time and occasionally financial resources.
2.Subjectivity in Narrative Analysis: The initial stages of the
funnel often rely on subjective perception, which can lead to
erroneous assessments if investors rely solely on their
preferences and biases.
3.Complexity of Quantitative Methods: Econometric analysis and
forecasting demand specialized knowledge and expertise.
4.Risk of Analyzing in a Vacuum: Scenario analysis may prove
ineffective if it fails to consider new and evolving market
trends.
1.Structured : The funnel offers a clear sequence for analysis,
starting with a broad overview of the startup and culminating
in detailed forecasting of its future. This method ensures a
comprehensive evaluation at each stage of the investment
process.
2.Step-by-Step Depth: The funnel allows investors to
progressively delve deeper into evaluating a startup,
minimizing the risks of overlooking critical details.
3.Flexibility in Application: Suitable for both angel investors and
venture capital funds, the funnel allows each investor type to
tailor the depth of analysis to their specific needs and
resources.
4.Improved Investment Decision Quality: A more thorough
understanding of all startup aspects helps reduce investment
risks and increase the likelihood of successful outcomes.
Advantages Limitations
Applicability Across Investment Stages: The analysis model can be adapted to meet the
needs and capabilities of different investors, making it versatile across various phases of
the investment process.
Key Insights
Value of a Structured Approach: The venture analysis funnel highlights the importance of
a systematic approach to startup evaluation, starting with a general perception and ending
with detailed quantitative analysis. This structured methodology ensures a thorough and
disciplined evaluation process.
Development of Analytical Skills: Effective use of the funnel necessitates continual
improvement in both quantitative and qualitative analysis skills, including econometrics,
data analysis, and understanding of market trends.
Caution in Data Interpretation: It is crucial to approach data critically, especially in the
early stages of the funnel where narratives and subjective opinions are significant.
Recognizing the potential biases in these initial assessments can help refine further
analysis.
Adaptability to Market Changes: Investors need to remain flexible and responsive to new
trends and changes in the market environment. This adaptability can enhance the
accuracy of scenario analyses and increase the likelihood of investment success.
Contact Information
Venture Analyst
arkassym
@akassym
arkassym@gmail.com
www.armankassym.com

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Mastering the Venture Analysis Funnel: A Strategic Blueprint for Investor Success

  • 1. Venture Analysis Funnel System Venture Analysis for Tomorrowโ€™s Leaders www.armankassym.com
  • 2. To provide a clear understanding of the venture analysis funnel and its components. To demonstrate how venture analysis can be strategically used to maximize investment returns. To equip investors with the tools needed to assess startups. Objectives & Goals
  • 3. Venture Analysis Funnel CONJUNCTURAL ANALYSIS EXTRAPOLATIONS, ANALOGIES, SURVEYS, ECONOMETRIC ANALYSIS SCENARIO ANALYSIS NARRATIVE ANALYSIS
  • 4. Narrative Analysis The initial and key stage of venture analysis: helps investors form a first impression and evaluate a startup's potential to attract capital based on its persuasiveness and market appeal.
  • 5. Conjunctural Analysis Second Level of Venture Analysis: Investors move from general narratives to a detailed assessment of a startup's key attributes and data. This step helps to systematize information about the startup and evaluate its current status and growth potential.
  • 6. Extrapolations, Analogies, Surveys, and Econometric Analysis Third Level of the Venture Funnel: Investors use comprehensive and quantitative analysis methods to not only assess the current state of a startup but also to predict its future development.
  • 7. Scenario Analysis Final Stage in the Venture Analysis Funnel: Investors evaluate various future scenarios for the startup to assess its resilience to external shocks and its ability to adapt to market co nditions.
  • 8. 1.Time and Resource Costs: Full application of the funnel requires significant time and occasionally financial resources. 2.Subjectivity in Narrative Analysis: The initial stages of the funnel often rely on subjective perception, which can lead to erroneous assessments if investors rely solely on their preferences and biases. 3.Complexity of Quantitative Methods: Econometric analysis and forecasting demand specialized knowledge and expertise. 4.Risk of Analyzing in a Vacuum: Scenario analysis may prove ineffective if it fails to consider new and evolving market trends. 1.Structured : The funnel offers a clear sequence for analysis, starting with a broad overview of the startup and culminating in detailed forecasting of its future. This method ensures a comprehensive evaluation at each stage of the investment process. 2.Step-by-Step Depth: The funnel allows investors to progressively delve deeper into evaluating a startup, minimizing the risks of overlooking critical details. 3.Flexibility in Application: Suitable for both angel investors and venture capital funds, the funnel allows each investor type to tailor the depth of analysis to their specific needs and resources. 4.Improved Investment Decision Quality: A more thorough understanding of all startup aspects helps reduce investment risks and increase the likelihood of successful outcomes. Advantages Limitations
  • 9. Applicability Across Investment Stages: The analysis model can be adapted to meet the needs and capabilities of different investors, making it versatile across various phases of the investment process. Key Insights Value of a Structured Approach: The venture analysis funnel highlights the importance of a systematic approach to startup evaluation, starting with a general perception and ending with detailed quantitative analysis. This structured methodology ensures a thorough and disciplined evaluation process. Development of Analytical Skills: Effective use of the funnel necessitates continual improvement in both quantitative and qualitative analysis skills, including econometrics, data analysis, and understanding of market trends. Caution in Data Interpretation: It is crucial to approach data critically, especially in the early stages of the funnel where narratives and subjective opinions are significant. Recognizing the potential biases in these initial assessments can help refine further analysis. Adaptability to Market Changes: Investors need to remain flexible and responsive to new trends and changes in the market environment. This adaptability can enhance the accuracy of scenario analyses and increase the likelihood of investment success.