Family investment offices for the ultra rich and institutional investors offer to audit potential projects by using a specific algorithm and a set of questions where the answers are tagged with an investment score of 1 - 10.
Here are some questions:
What is the upside maximum potential and highest potential gain for this asset?
What is the probability of capturing the maximum potential valuation?
Is there a correlation to publicly available assets / Indices like Bitcoin, S&P, Bond Market?
Does this asset have enough diversification so that it is not reliant on a specific company or industry?
How liquid is the asset, the ability to purchase and sell the asset comparable to like assets?
What macro changes could affect the performance of the asset?
If these changes occur, what are the probabilities of the effect on the asset?
Is there sufficient data to put the asset through a stress test like the 2008 recession to come up with probabilities of outcomes?
Are the variables simple, identifiable and probable enough for the asset to gain momentum on the steep part of the J-Curve upside?
Will the upside occur without the need for external circumstances?
What different forms of hedging are there to mitigate the downside risks outside of asset price appreciation?
Is it worth the downside probability risk for the probability of the upside reward, factoring in standard deviation of probabilities?
What are the qualities of the project leaders including character, business acumen, understanding of markets and investor psychology?
Do these leaders have experience with winning, increasing value, driving revenues, and making money?
Has the methodology and pace of research been looked at from different angles, tested and thoroughly planned.
How often are the leaders reporting performance?
What type and level of investor is the project trying to attract?
Are there high quality strategic partnerships with great track records that would benefit investors.
What would be some of the deeper reasons for investors to participate?