Where is the "space" in your business model? As I look through a business model -- or even in talking with founders pre-diligence -- I am trying to understand the inflection point where the business gets very big. Things like: ▪️ new revenue stream coming online ▪️ transaction volume scale with network effects ▪️ room to increase take-rate on transactions ▪️ moving up to enterprise-grade ACV Often times I hear founder talk about "space" in the business, but don't see it in anything close to a plan (a pro forma, model, roadmap, etc). If I'm looking at a model, it's to understand two things: 1) what's the size of the opportunity? (where's the space?) 2) how does the founding team think about the future of the business? (has the narrative been gamed-out in a plan?) The financial docs in a data room can either keep me in assumption-making mode, or increase my conviction in the founding team's ability to think + act seriously about what they're trying to do.
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