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Determining Investment Worthiness-Lessons from the Billions Series
Why the interest? A few months ago, I was approached by a popular VC fund seeking individuals who would help identify startups that would be suitable for investment. I identified two some of which had already interacted with the VC/Angel landscape but was keen to get my feet wet as well as of course make some money (they were offering about USD 500 per find).
So I did what everyone in the modern day should do. I did a search? No I asked AI. I asked a tool that comes with the Opera Browser how to determine investment worthiness of businesses.
Fast forward to a few days ago, and I was asked through a private group to shed some light about a particular business that someone was interested in investing in. So I sent a list that I sourced from Artificial Intelligence submitted it to my client and then used the same list to give me a rough idea how to judge the prospective business.
Because these questions persist, I have decided to share with you some of these ideas. Notable too is are the metrics I shared in a previous issue of the magazine which to be fair are more applicable to web based businesses because of their unique ability to give the analyst access to features covering monthly, daily and weekly usage.
In addition to this though, I have added some material that might help visual learners to better understand what is at stake. For this I used Season 2 Episode 5 of Billions where the main character explains to his wife why her clearly profitable business is not investment worthy. Just so you know some of the ideas that we highlight are market, team, legal and regulatory and product.
Here is a segment of the conversation between husband and wife highlighting key considerations for investment. What is it that you do that
you're the best in the world at?
You offer a service
you didn't invent,
a formula you didn't invent,
a delivery method
you didn't invent.
Nothing about what you do
is patentable or a
unique user experience.
You haven't identified an
isolated market segment,
haven't truly branded
your concept.
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By Nicholas KyandaWhy the interest? A few months ago, I was approached by a popular VC fund seeking individuals who would help identify startups that would be suitable for investment. I identified two some of which had already interacted with the VC/Angel landscape but was keen to get my feet wet as well as of course make some money (they were offering about USD 500 per find).
So I did what everyone in the modern day should do. I did a search? No I asked AI. I asked a tool that comes with the Opera Browser how to determine investment worthiness of businesses.
Fast forward to a few days ago, and I was asked through a private group to shed some light about a particular business that someone was interested in investing in. So I sent a list that I sourced from Artificial Intelligence submitted it to my client and then used the same list to give me a rough idea how to judge the prospective business.
Because these questions persist, I have decided to share with you some of these ideas. Notable too is are the metrics I shared in a previous issue of the magazine which to be fair are more applicable to web based businesses because of their unique ability to give the analyst access to features covering monthly, daily and weekly usage.
In addition to this though, I have added some material that might help visual learners to better understand what is at stake. For this I used Season 2 Episode 5 of Billions where the main character explains to his wife why her clearly profitable business is not investment worthy. Just so you know some of the ideas that we highlight are market, team, legal and regulatory and product.
Here is a segment of the conversation between husband and wife highlighting key considerations for investment. What is it that you do that
you're the best in the world at?
You offer a service
you didn't invent,
a formula you didn't invent,
a delivery method
you didn't invent.
Nothing about what you do
is patentable or a
unique user experience.
You haven't identified an
isolated market segment,
haven't truly branded
your concept.