The successful evaluation of any proposal will primarily hinge upon the
following important criteria without being limited by it.
We prefer to invest in cutting-edge and highly innovative technologies that have
disruptive potential worldwide. The concept behind the technology must be
proven and verifiable. Further, we avoid projects that don't demonstrate a
clear path to commercialization. Any breakthrough innovation must be
accompanied by a strong business model and plan.
We invest in solutions that address major problems for significantly large
target markets. Your company must demonstrate a strategy to claim significant
share of this market. Preferably you should be operating in a fast growing
market and not be in a crowded or competitive market (Blue Ocean strategy as
against Red Ocean strategy). You should either have a first mover advantage in
your market or demonstrate significant barriers of entry to potential
competitors and copy-cats of your product/service.
We look for companies that can grow quickly across regions and manage the scale
necessary to succeed. Your company must demonstrate a plan to generate
significant profits beyond the initial product idea through Product or
Geographic or value-chain expansion or have an alternate strategy to achieve
multiple sources of revenue. We also require well-conceived financial
projections, based on sound assumptions, demonstrating profits and cash flow
The reason traction is so important, is because it typically demonstrates a
shift from an idea to something that is on the path to being a profit making
business. Traction is progress or momentum. More traction can equal less risk.
How to Demonstrate Traction:
1. Working product: Have a product / service which can be demonstrated for purpose of market testing
or even better if you have a ready-to-launch product/service.
2. Get sales and customers: This is one of the best ways of proving traction. Rather than spend endless
months and years perfecting your product, put your energies and creativity into
snapping up paying customers.
3. Secure Strategic Partners. Whether it’s a manufacturing, distribution, marketing or media partnership, a strategic
partnership can be useful evidence of traction. A business that takes advantage of strategic partnerships can utilize the other
company’s strengths which can make both companies stronger in the long run.
We invest in people and teams of highly motivated entrepreneurs preferably with
a track record of leadership and performance, either in the company's specific
industry or in prior entrepreneurial ventures. We also look at your team's
passion for and commitment to the new business idea, and your ability to
inspire confidence among future stakeholders, including employees, potential
customers, and investors. As we will be working together as partners, your
team's credibility is essential. Teams should be street-smart, market-savvy and
possess sound execution capabilities.
Your product / service must have some proprietary features that distinguish it
from potential competitors or provide barriers to entry that prevent other
companies from capturing your customers with a similar offering. Attributes
that convey competitive advantage include intellectual property protection,
know-how, exclusive licenses, exclusive marketing and distribution
relationships, strong brands, scarce human resources (i.e. knowledge and
skills), and access to scarce raw materials.
Your product / service should have a clear monetization value and plan. It
should be demonstrated by some form of customer assessment or market research /
There should be sufficient Intellectual Property and strong patents are a bonus.
We are attracted to rational, realistic and reasonable valuation.