What are the GSV 5 Ps?
The GSV 5 Ps is a framework for evaluating startups from team to product. It attempts to examine 5 critical aspects GSV Ventures believe most indicate the future success or failure or a potential investment.
The Five Ps are:
The GSV Ventures team uses the 5 P’s Investment Framework to evaluate potential investments. This framework examines People, Product, Potential, Predictability and Purpose.
The most important factor is People – a team’s people determine a company’s ability to execute on ideas.
“There is no shortage of interesting ideas, but it’s always the team’s ability to execute against the opportunity that determines success or failure.”Michael Moe, GSV Ventures on evaluating team over all else
It is also important that the Product has something unique about it and can provide a superior user experience than existing alternatives in order for potential returns to be successful.
“When looking at products, we try to find solutions that are differentiated and create 10X better user experiences than existing alternatives.”Michael Moe, GSV Ventures on the importance of Product
Predictability with measurable signposts of growth provides additional confidence when evaluating companies, but can be a boat anchor if they lack Purpose.
GSV Ventures uses the 5 P’s framework to evaluate thousands of entrepreneurs every year.
“The GSV Ventures team continues to leverage this framework daily, helping us sift through the noise and providing a compass that keeps us focused on what’s important.” they explain. “We look for companies that have high impact, provide essential services, and are critical in the transformation of human capital. We partner with companies that have the opportunity to solve some of society’s biggest issues because that’s where the biggest returns are.”