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Editor’s Note: A common myth surrounding venture capital is that success is all about intuition. Reality tells us otherwise.

What many overlook is that elite venture capitalists don’t leave their decisions to chance.

After years of analyzing the most significant achievements in venture financing, my colleague Luke Lango has outlined a straightforward method for pinpointing outstanding companies.

Recently, he presented The 2026 AI Megadeal Event, revealing his comprehensive approach to assessing private AI firms before they hit public markets.

In the following discussion, Luke introduces his PPT framework – People, Product, and Timing – and elaborates on its effectiveness for evaluating private investments.

After reading, I recommend you watch the free replay of The 2026 AI Megadeal Event.

Here’s Luke with more…

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Back in the mid-20th century, countless business proposals were rejected on a single desk in Boston.

That desk belonged to Georges Doriot, a Harvard Business School professor credited with shaping modern venture capital practices. Years before Silicon Valley became the heartbeat of startups, hopeful entrepreneurs sought Doriot's investments, knowing he could transform their ideas into thriving companies.

Doriot’s students clung to one lesson he imparted consistently:

Always invest in a top-tier founder with a fair idea. Avoid backing a mediocre founder with a brilliant concept.

He tested this philosophy in 1957 when young MIT engineer Ken Olsen approached him seeking funding for an unconventional computer company. At a time when the term “computer” evoked skepticism because of a string of failures, Doriot advised Olsen to shift focus from technology to the genuine problems his invention could resolve.

Most importantly, Doriot had faith in Olsen as a founder.

His firm, American Research and Development, invested $70,000 in what would become Digital Equipment Corp., a forerunner in the minicomputer industry and, for a time, one of the largest tech companies in the nation. By the time Doriot’s firm recouped their investment, their initial stake had ballooned to over $350 million, marking a highlight in venture capital history.

What’s frequently misremembered about Doriot, however, is the notion that he solely identified one remarkable company.

The reality is he had a methodical approach to distinguishing extraordinary firms from the multitude of failures.

Today, individual investors can pursue opportunities that were once confined to wealthy insiders or venture capitalists.

Changes in securities regulations now allow everyday investors to engage with many early-stage companies previously inaccessible.

However, simply entering the field is just the beginning of the challenge.

Investing in private companies differs vastly from purchasing shares of publicly traded stocks. Startups are in their infancy, information is less transparent, and the risks are significantly elevated.

This is why I apply a rigorous framework before endorsing any private enterprise.

My approach is distilled from years of studying venture finance, and while it doesn’t eliminate risk, it assists in differentiating between compelling narratives and businesses poised to evolve into next-generation leaders.

In the following segments, I’ll clarify how this framework operates.

And I’ll explain why I believe it enhances investors' chances of discovering exceptional companies long before Wall Street gets involved.

The Three Questions I Ask Before Every Investment

Every savvy venture capitalist eventually establishes a set of criteria. Mine is distilled into three core questions.

I label it PPT: People. Product. Timing.

This trio assists me in pinpointing remarkable founders, identifying necessary products, and recognizing opportune moments for early investors.

That's the framework I will discuss in detail.

Will these questions guarantee success? Not at all.

In the reality of early-stage investing, many startups will stumble or fail entirely. Even the most successful VC firms count on a fraction of their investments to deliver the bulk of their returns.

This highlights the necessity of a disciplined approach.

It’s easy to get swept up in an enticing pitch. My objective is to maintain enthusiasm only for founders and companies that remain compelling after rigorous questioning.

Let's begin with the first—and arguably the most critical—question.

People: The Filter That Matters Most

If I had to prioritize among the three parts of my PPT framework, it would unquestionably be People, People, People.

Or, as Georges Doriot wisely asserted:

Invest in a top-tier founder with an average idea. Never support an inferior founder with an exceptional concept.

This principle holds remarkably true in my experiences.

A remarkable product unveiled at the ideal moment can still falter if those at the helm lack the ability to execute, adapt, or unite a team amidst the inevitable challenges startups encounter.

History backs up this theory. The difficulty lies in that outstanding founders often don’t shine on paper.

Take Shopify Inc. (SHOP) for instance; co-founder Tobi Lütke left school at age 16 to pursue programming—an unconventional path at best. However, he had already spent considerable time honing his software skills.

Lütke's initial ambition was to sell snowboards online, but after frustration with existing e-commerce software, he created his own system instead. That side project evolved into Shopify, which has become one of the largest global e-commerce platforms.

Here's the takeaway.

The key indicator you should seek isn’t a prestigious résumé but rather deep expertise and an unwavering dedication to addressing specific issues. Those traits often outweigh factors like where someone studied or how polished their LinkedIn profile may appear.

This is precisely why I prioritize evaluating founders' backgrounds before diving into a company’s financial forecasts. What have they previously accomplished? Can their statements be substantiated? What do past colleagues or investors reveal about their experiences with them?

Having exceptional founders doesn’t guarantee a lucrative investment.

My aim isn’t to identify merely capable individuals; I'm searching for extraordinary leaders capable of crafting industry-altering enterprises.

It sets a formidable standard, but those are the creators who can deliver the returns typical of venture capital.

Product: Does It Solve a Problem People Can’t Live Without?

Once I’m convinced of the founders’ caliber, I shift focus to the Product.

The inquiry here is not about cleverness or trendy technologies.

Instead, it centers on a much clearer question: Does it address a critical problem that customers would accept an imperfect initial version just to gain access to it?

Historical patterns suggest that’s often how groundbreaking companies are launched.

Google, for instance, arose from the need to navigate through an increasingly vast internet. Early investors grasped that necessity well ahead of broader public awareness.

That’s the type of demand I actively seek.

Most ideas that reach my desk seem merely “interesting.” However, I focus on products that individuals instantly recognize as essential.

At present, one area where I see emerging urgency is in physical AI—technology that enables robots to perform valuable functions in the real world.

Creating competent robots is significantly more complex than coding chatbots. Unlike language models, robotics depends on real-world demonstrations for task learning.

This situation results in a bottleneck.

Businesses that can streamline this process are addressing one of the major barriers facing entire industries.

Those are precisely the type of AI companies I’m eager to examine for private investment possibilities, as they target problems I anticipate will grow increasingly urgent.

Timing: Two Clocks, Not One

The final pillar of my PPT framework is Timing. I monitor two timelines.

First, I assess whether we’re investing early enough to capture substantial upside, yet at a stage where the business has demonstrated viability. This highlights why evaluating People and Product takes precedence—they determine if the company deserves investment consideration.

Second, I evaluate the industry’s climate. Currently, AI is generating a favorable environment; major tech corporations are pouring billions into AI infrastructure and frequently acquiring smaller firms rather than attempting to develop all necessary technologies themselves.

This is vital for new investors.

In today’s landscape, successful investments no longer conclude with an IPO. They frequently end when a larger firm recognizes that acquiring innovation is a swifter strategy than building it from scratch.

Hence, I pay attention to both timelines.

My goal is to invest in the right companies but also to do so when the market is prepared for their innovations.

What This Framework Actually Gives You

Georges Doriot acknowledged he couldn’t foresee the future.

His quest centered on conviction—the assurance stemming from diligent inquiry before committing funds.

That is the essence of my PPT framework today.

Private investing isn’t about pinpointing certainty; it’s about consistently making informed decisions.

Each opportunity I assess must satisfactorily address these three essential questions.

Are the People extraordinary? Does the Product effectively meet a genuine need? Is the Timing appropriate?

If the answers aren’t affirmative across the board, I continue the search.

This is precisely what I’ll illustrate in The 2026 AI Megadeal Event. No longer in the abstract, I’ll apply the framework to analyze a real private AI company and explain why I believe it fulfills all three criteria.

I invite you to join me.

Regards,

Luke Lango

Editor, Hypergrowth Investing

P.S. This piece outlines the evaluation framework Luke employs for private companies. However, witnessing that framework applied to a tangible opportunity holds even greater significance. In The 2026 AI Megadeal Event, he’ll dissect an AI business that he believes meets all three benchmarks—People, Product, and Timing—and clarify why it caught his interest. If you haven’t seen the presentation, I strongly recommend you do so.