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How to evaluate a startup before investing

A seven-question method, screen by screen through the startup page: what to look at in the team, round, milestones, financials, documents, reports and trust score.

12 min read6 chaptersFor investorsIntermediateUpdated Oct 17, 2026

What you will learn

  • Reading a startup page from top to bottom
  • Telling solid milestones from empty ones
  • Interpreting the three trust scores
  • The red flags you should not ignore

Before you start

  • Pro plan to see the full page. On Free you see the summary.

Chapter 1The seven-question method

  1. Do I understand what it does and how it will make money?If you cannot explain it in two sentences, do not invest yet.
  2. Who is behind it?Team, commitment, experience and the founder’s trust score.
  3. How much is it asking for, and for what?Goal, use of funds and whether it matches the milestones.
  4. Are the milestones verifiable?Each one with an amount, a date and concrete evidence.
  5. What do the numbers say?Current situation, months of runway, projections and whether they are verified.
  6. What rights do the tokens give?Read it in their documents. They are never shares.
  7. Can I afford to lose this?If the answer is no, invest less or not at all.

Chapter 2The top of the page

app.krows.app/p/aurora-solar
The top: amount raised against the goal, days left and how many people follow it.
  1. Raised and percentage. 46,800 of 120,000 USDC is 39%. Remember that if it does not reach 100%, investments are returned.
  2. Days left. A round lasts 90 days at most.
  3. Following. People who saved it: interest, not investment.
  4. Stage, model, team, language, company and report frequency. If the company is not incorporated yet, you will see it here.

“Invest on the startup’s website” takes you to its investment page. “Investor chat” opens the conversation of those who have already invested.

Chapter 3The three trust scores

app.krows.app/p/aurora-solar
Startup trust, founder trust and on-time reports, next to the page tabs.
FigureWhat it measuresHow to read it
Startup trustApproved milestones, reports, turnout, incidents and complaints for this startup.76+ excellent, 46–75 good, 31–45 medium, 20–30 low, under 20 critical.
Founder trustTheir record as a person on Krows, across all their startups and investments.A new founder starts at 50. Look at the trend, not just the number.
On-time reportsHow many reports were delivered on time.“No reports yet” is normal in a round that has not closed.

With Pro, tap the founder’s trust to see their full history: what added and what subtracted, and when. More in How trust score goes up and down.

Chapter 4Tab by tab

Startup

The problem, the solution, the summary and the risks and challenges the founder declares (1 to 5). A founder who admits their risks and explains how they will handle them inspires more trust than one who declares none.

Team

Who is a founder, their commitment (full or part time), their bio and advisers. Look the people up outside Krows: LinkedIn, press, previous projects.

Milestones

The milestone plan with amount, what will be done, estimated date and how it will be proven. The rules: no milestone exceeds 40% of the goal and all come after the round closes.

Milestones: bad and goodExamples

Not like this

  • “Make progress on development” · 90,000 USDC
  • “Marketing” with no figures or dates
  • Proof: “you will see it in the next report”

Like this

  • “Public beta with 500 registered users” · 30,000 USDC
  • “200 verified sales before June 30”
  • Proof: public dashboard, invoices and recorded demo

Rewards

Perks for investors above a number of tokens (discounts, early access, products). They are delivered after the milestone the founder chooses. Money distributions cannot be advertised inside Krows.

Financials

Current situation, months of runway, previous rounds, cap table and 3-year projections. Everything shows as “declared by the founder”; if an external audit validates it, it becomes “verified”.

Documents

Business plan, accounts, patents, customer letters and, where the law requires it, the offer’s white paper. That is where the rights the tokens give must be explained.

Reports

If the startup already has a successful round, its reports are here with investors’ average rating. It is the most honest part of the whole page.

Chapter 5Red flags

  • Vague milestones (“make progress on development”) or one that takes almost all the money.
  • Promises of guaranteed returns or of “multiplying” what you invest.
  • No declared risks, or filler risks.
  • Financials that do not match the use of funds.
  • Pressure to invest “before it is gone”: rounds have a date, but nobody should rush you.
  • Being asked to invest outside its official page or through a link that is neither checkout.krows.app nor its verified domain.
  • A founder with low trust or a record of rejected milestones.

Chapter 6Final review

Before you close this guide, check you have it clear. None of this is sent anywhere: it is just for you.

Before investingSaved in this browser
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Check what you knowPick an answer

A milestone reads “Make progress on development · 90,000 USDC” out of a 120,000 goal. What do you think?

A milestone must be verifiable, and Krows does not allow any to exceed 40% of the goal.

A startup’s financials say “declared by the founder”. What does it mean?

They only become “verified” if an external audit validates them.
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