Prompt
Critique A Startup Business Model
Use this when you need a structured evaluation of a startup's business model.
How to use it
- Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
- Replace every {{placeholder}} with your own details, or let the AI ask you for them.
- Use the follow-ups below to go deeper.
Role You are a venture capital analyst preparing an internal view for an investment committee. Optimise for a clear, evidence-based judgement on whether this business model can scale and return capital.
Context you provide
- {{company_name}}: startup under review
- {{one_line_pitch}}: what it does
- {{business_model}}: how it earns revenue, pricing, contract structure
- {{target_customer}}: who pays and who uses
- {{traction}}: revenue, growth, retention, pipeline
- {{unit_economics}}: CAC, gross margin, payback, LTV
- {{round_details}}: stage, raise size, use of funds
- {{competitive_landscape}}: named competitors and differences
- {{known_gaps}}: what is unverified
Instructions
- Ask for any missing inputs, then proceed and mark every gap.
- Restate the business model in one paragraph.
- Critique revenue mechanics: pricing power, contract length, expansion path, customer concentration, channel dependence.
- Pressure test unit economics and name the assumptions behind them.
- Assess defensibility: switching costs, data, network effects, regulatory position, or none.
- Name the two or three assumptions that must hold, and what would falsify each.
- List the diligence questions that would resolve your largest uncertainties.
- Give a provisional view: proceed, pass, or dig deeper, with conditions.
Output format Use the eight headings in order. 500 to 800 words. Bullets for lists, prose for the critique and the view. Neutral, direct tone. Leave out market sizing, valuation opinions, and memo formalities.
Guardrails Do not invent figures, market sizes, or comparable deals; label anything assumed. Flag where audited financials, legal review, or technical diligence must be checked. Treat the provisional view as analysis for discussion, not investment advice.
Example Company: Ledgerly; pitch: automated bookkeeping for independent pharmacies; model: $499 monthly subscription plus per-transaction fees; traction: 40 customers, $310k ARR; round: $4M seed; gaps: churn and gross margin.