For early-stage growth companies, an investment memo must prove a dual thesis: not only will the initial capital generate a fair return, but the company's progress will make it *more* attractive to buy additional shares at higher prices as it de-risks. If you wouldn't dollar-cost-average up, you shouldn't make the initial investment.

When a company is growing 10x or 50x year-over-year, obsessing over the entry multiple is a mistake. An initially 'insane' valuation can look cheap in retrospect. The primary focus should be on determining if the company is on an exponential curve; price is the least important factor in that equation.

Frame a significant valuation increase between funding rounds by identifying the core assumptions of the business model. Then, demonstrate which of those assumptions have been proven true, thereby de-risking the investment and justifying the new, higher valuation.

Effective due diligence isn't a checklist, but the collection of many small data points—revenue, team retention, customer love, CVC interest. A strong investment is a "beam" where all points align positively. Any misalignment creates doubt and likely signals a "no," adhering to the "if it's not a hell yes, it's a no" rule.

A compressed diligence process relies heavily on projections. A superior approach is building a relationship over 1-2 years, which allows an investor to witness the company's actual execution against its stated goals, providing far greater conviction than any financial model.

Intrinsic value shouldn't be confused with a 12-month price target. It is a calculation of a company's long-term worth, akin to a private market or takeover value. This stable anchor allows investors to assess the "margin of safety" at any given market price and ignore daily noise, rather than chasing a specific trading level.

Craver uses a powerful thought experiment to filter investments: "If the stock market closed tomorrow and reopened in three years, what would you want to own?" This mental model forces a focus on durable, high-quality companies with secular tailwinds, filtering out trades based on short-term, speculative data points.

A stock's valuation frames the core question an investor must answer. At six times earnings, the question is about near-term survival; at 50 times, it's about decades of growth. Your job is not to find a price, but to find a question you can confidently answer.

To generate fund-returning outcomes (5-6x), a simple 3x potential isn't enough. A company must be compelling enough that after you've made your 3x, another investor can clearly see a path to make *their* 3x. Without this 'next 3x' potential, the company will lack exit opportunities and liquidity.