How Founder of theIntelligent VC, Andrei Doktoroff, Makes Investment Decisions?

Andrei Doktoroff, the founder of theIntelligent VC, has developed a structured approach to evaluating investment opportunities, combining data-driven insights with intuition and experience. In this article, we explore the key steps he follows in validating startups, assessing founders, and making informed investment decisions.

1. Problem Validation: Is There a Real Market Need?

The first and most crucial step in investment decision-making is validating the problem the startup is solving. A great idea alone is not enough- it must address a real, significant pain point for a clearly defined target audience. In a conversation with Inta Buša, co-founder and CEO of Dealita, he reveals that one of the first challenges for startup founders is not to fall in love with their idea but rather with the problem they are solving for their customers.

"Before you get excited about any product, it’s important to make sure it’s not just a good idea but one that people will actually pay for," Andrei explains.

✔ How Andrei evaluates this:

• Does the startup have customer interviews or data proving the problem exists?

• Is this problem urgent and painful enough that customers would pay for a solution?

• Are there alternative solutions in the market, and how does this one compare?

2. Founder and Team Evaluation

Even the best idea is worthless without a strong team to execute it. Andrei believes that investing in the right founders is just as important as investing in the right idea.

✔ Key factors in assessing founders:

• Domain expertise: Do they deeply understand the industry and its challenges?

• Resilience & adaptability: Startups face countless obstacles—can they navigate uncertainty?

• Execution ability: Have they demonstrated the ability to build and sell effectively?
  

"It’s very important that we connect with founders. We discuss our values, vision, and how they are doing things.”

3. Deeper Due Diligence

After meeting with the founders, theIntelligent VC undertakes an in-depth due diligence process that thoroughly assesses the startup’s market potential, competitive edge, and profitability prospects.

This process includes a comprehensive review of several critical factors, such as:

✔ Does the startup utilize AI technology to drive its product or service?

✔ Is there unique intellectual property (IP), proprietary AI models, or technology that gives the company a distinct competitive advantage and is difficult for others to replicate?

✔ Key financial metrics, including Customer Acquisition Cost (CAC), Lifetime Value (LTV), burn rate, revenue model, and other essential indicators, are thoroughly evaluated to gauge the startup’s financial health and growth potential.

For Andrei Doktoroff, venture investing is about much more than just capital or number crunching – it’s about building meaningful relationships, providing valuable mentorship, and fostering innovation. Having explored stocks and other investment avenues, Andrei views startups as the space where he can truly make an impact by sharing his experience and offering strategic guidance, not just funding. For entrepreneurs seeking investment, the key takeaway is clear: deeply understand your customers, validate your ideas, build a resilient and talented team, and demonstrate early traction to prove your startup’s potential.

Listen to the full conversation between Inta and Andrei here