Ask HN: How to assess an application for investing purposes?

Does the product solve a problem?

If so, what is the problem?

Does the problem exist for a large enough number of users?

Are those users likely to be paying users (or a sufficient percentage of them)? Or are there other relevant revenue models that exist - hopefully the company is aware of them?

The product isn't really the determination of whether the company is investment-worthy or not; it's whether the problem it is meant to address is inconvenient enough for users to WANT to get the product.

I would say the team and market need is more important than the code (since he is investing in the company, not outright buying the IP).

Do they have paying customers? Talk to them.

Do they have prospects evaluating it. Talk to them.

Can your friend supply expertise or connections in addition to money?