1) Category leader (dominates a niche, see Gartner/Forrester) 2) Recurring revenue (high visibility SaaS model) 3) Large and growing TAM vs market share (>$2B market cap, the potential to 2-3x over the next 3 years, position on S-Curve?)
4) Defensible moat (network effects, branding, IP, partnerships, distribution channels, architecture, switching costs, economies of scale, barriers to entry, talent, etc.) 5) High gross margins (>70%) and organic revenue growth (>40%, preferably w/potential to accelerate)
6) High DBNER (>120%) and gross retention rate (>90%) 7) Progress towards profitability (improving non-GAAP gross and operating margins and cash flows, sales efficiency) 8) Focused, mission-driven company culture, ambitious vision (4/5+ Glassdoor rating?)
9) Founder CEO, experienced management, and high insider ownership (insider buying?) 10) Rapid customer growth with fast sales cycles (preferably bottom-up/land and expand model) 11) Diversified customer base (strong pricing power, few dependencies)
12) Optionality and rapid product development (creating a platform/ecosystem?) 13) User satisfaction/mindshare (external job postings, reviews, conferences) 14) Valuation (sustainable multiple w/opportunity for expansion?)
15) Geographic/industry familiarity (US-based? Can I easily explain their product offering?) 16) Technical indicators (healthy relative strength, volume, accumulation/distribution, moving averages trending up, etc.)