TECHNOLOGY RISK. “Can we actually build this thing?“. “Can we build this thing at a price people will pay?“. For example, if we build a cure for cancer there is zero market risk.. MARKET RISK. “Will anyone want to pay for this?“. If we, for example, decide to build toys in the US because Chinese models have chemicals in them.. But the cost is 4x to build them in the USA.. Your risk is a market one -- both in terms of finding (marketing) and selling.. FINANCING RISK. “Is there enough capital to pursue this idea?“. Take Uber, for example.. That business could not have been built except in an environment of loads of venture capital.. Or if bootstrapping, can we afford to run this business until it gets cash flow positive?. REGULATORY RISK. “Will regulations end our business?“. This is where the risk in Cannabis startups, for example, was concentrated.. Yes, people want marijuana. Yes, it can be grown cheap.. Would the feds cut off the lifeblood for these ventures?. That was the risk.. EXECUTION RISK. “Can this team actually deliver?“. Some companies have wife-husband teams.. Many investors hate them because they're a higher risk of blowing up.. In this example, you can mitigate the risk, not avoid it— but also listen closely for how strong the marriage is.