How to evaluate growth stocks like VCs

7 min read

Two and a half factors to assess growth investments.

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  • How hiring and people management is the true source of whether a tech business thrives
  • Why number-crunching alone never tells you the story


I always start by matching top-down technology advancements with bottom-up basic human needs and desires. I outlined this approach and depicted my current view on the two perspectives in my last article. My investments always need to significantly better serve a basic human need compared to the currently available solutions. My categories of basic human needs are health, wealth, status, freedom or short-term satisfaction. For the technological top-down perspective, the investments need to leverage technological progression that generates economical value within the next 3–5 years. My six themes for technological progress are energy storage, robotics, artificial intelligence, blockchain, DNA sequencing or the web 3.0.


Let’s jump next to the microorganism of the investment. The two dimensions to consider here are the people and the product & it’s distribution. However, the first factor influences and therefore dominates the second by a mile. The company’s people are the determinant factor of who joins along their path, which problems in which way they tackle and how their products & it’s distribution look like. So let’s start with the people dimension.

Data and Information

The last bucket, or half bucket to be more precise, are numbers and data crunching. The reason why I see it as half a bucket, numbers and data crunching does not add any new dimension of fundamental first principle information to the analysis. It is just the tracking and feedback mechanism whether you are right on the analysis you did on market and the micro perspective of the business.

Additional Readings:

Cyrill Studer I am writing to think and structure my thoughts around growth economics and technology. Just trying to contribute, understand and make sense of this wild, fast-spinning world out there. Specifically I am writing about the following topics: Micro: Depiction of technological, product and strategy advancement in the space of data, financial services & the next generation internet Marco: Insights into the global mechanism and systems leading the forefront of the technological revolution Hacks and Principles: Thoughts on traits, skills and mindset to flourish in this new world Follow me along my journey of discovering and reflecting. Stay curious, keep pushing, be nice & peaceful, and simply enjoy the ride.

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