OUR PROCESS

Before we invest in an idea, we analyze two aspects of the underlying premise of the startup – its viability and its feasibility.

Our viability and feasibility analysis process seeks to clarify the following questions:

 VIABILITY ANALYSIS

• Is the concept evolutionary, disruptive, or revolutionary?
• Does the target addressable market already perceive the product / service / offering as a need?
• If not, can we cost-effectively introduce and market it? Can we realistically become the category leader? (marketing plan / sales / user acquisition model / user retention)
• Why will prospective customers / users want to try the product / service? Why will they keep using it? Why will they switch away from their current practices? Can we successfully create an intuitive and enticing engagement / user experience? Can we, and how do we, create a product / service that users will perceive and appreciate as vital to their processes? (value proposition)
• Is the business commercially viable? Is the startup focused on user acquisition, on cash-flow growth, or on a balance of the two? (monetization / growth)
• What does the competitive landscape look like? Does the startup have adequate intellectual property protection? What are the niche’s barriers to entry?
• What are the startup’s funding and operational needs, plans, and milestones? Are they realistic? Can we minimize risk to investors by providing Contingent Milestone Installment (CMI) funding? (capital strategies)
• Do the startup and its team fit well with our criteria, stage, sector, and region competencies?
• Are the founders and executives amicable to cooperation and communication with investors?
• Do the most-probable ROI (x) and IRR (time weighted) scenarios fit our fund’s objectives?
• Are our exit objectives aligned with those of the founders and management? Is the company projected to become a profitable growth company? What are the realistic prospects or exit strategies of the company? (private growth / being acquired / an IPO)

FEASIBILITY ANALYSIS

Can the startup (with our help, if necessary):

• Efficiently budget utilization of available capital and achieve defined milestones?
• Achieve its development and promotion objectives on schedule and within budget?
• Establish, and remain focused on, its short-term and long-term objectives?
• Recruit, acquire, and retain needed talent and skill?
• Utilize our industry network for operational, growth, and strategic advantages?
• Attract senior executive management when needed?
• Attract additional funding to achieve its growth and exit objectives?