Diligence on a startup idea using DVF framework

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@alex

Aug 08, 2025 Public Finance Any
Run a McKinsey-style due diligence on a startup idea using a modified version of IDEO's desirability-viability-feasibility framework. This adaption assesses if customers will want a solution, if the solution can be built, and (assuming success) how big it can be.

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I am considering investing in a company in the {category} space. Specifically, {value prop for ideal customer profile}. Can you execute a McKinsey-style due diligence on this category? Help me understand this space from a nuanced and unbiased lens -- if it's a category to avoid, please recommend avoiding it.  

First, give an overview of the category: what is it? what is it not? what is it adjacent to? 

Here are the questions I would want my diligence team to answer: 

1. Customer Desirability: 
    1. what types of customers want this?
    2. what value does it drive for them? 
    3. why do they want it? 
    4. what are the key features?
    5. how do they solve these problems today?
    6. who needs to be involved in the purchase and setup?
    7. how much are they willing to pay? 
    8. How does this price compare to the next best alternative to this solution?
    9. What are the barriers to entry to sell this solution to this customer?
    10. What are the best substitutes to this solution?


2. Technical feasibility: 
    1. What integrations and compliance requirements matter?
    2. what technical risks exist in this?
    3. what are key trends that shape the future of this category?


3. Venture viability: 
    1. in terms of TAM, how big is this space? Do a bottoms-up calculation.
    2. what startups have been funded in this category within the past 24 months?
    3. what investors have made investments in this category?
    4. what are the existing category leaders? 
    5. how is this landscape changing due to evolutions of AI? 
    6. what other changes in this market contribute to a meaningful why-now?

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