Delta-4 Theory: How to Evaluate your Startup Idea?

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Delta-4 Theory is a framework coined by Kunal Shah, the founder of CRED App, to evaluate startup ideas and create wealth. It is based on the idea that wealth is created when businesses help humans move from point A to point B in a more efficient manner. This theory can be used to test an idea or an existing business by assessing its efficiency score on a scale of 1-10. According to the theory, if the delta of the efficiencies is greater than 4, the business or the solution will unlock the pot of gold. The theory also outlines traits of Delta-4, exceptions, and ways to fake Delta-4. It can be used by entrepreneurs while formulating ideas for startups or existing products to evaluate whether the product or solutions is creating extraordinary value and will create wealth in the future.