Check how investable is your venture?
Investor Readiness Report
The funding process is brutal and full of pitfalls for an investor and an entrepreneur. Investors have difficulty in assessing opportunity versus risk and businesses are often not ready from an investor’s perspective. The lending process for banks is enabled through credit rating scores, even though they are often lending against assets. But there is no such process to accelerate the funding process for entrepreneurs by providing them insights on their business, benchmarking them against a peer group of companies and in turn enabling an objective assessment by investors. Help is finally at hand, our proprietary algorithm driven report, the “Investor Readiness Report”, that is being rapidly adopted by investors and leading institutions, does exactly that. It quantifies opportunity, provides an objective assessment against a peer group and includes invaluable commentary from our business experts on various aspects of the company.
The Investor Readiness Report provides valuable insights, recommendations, as well as an investor readiness score to guide investors and the entrepreneur on:
Investability
How investable is the venture
Peer Comparison
How the venture compares to their closest peer group
Strengths
The strengths and opportunity along with the areas of focus for the entrepreneur
Fund raising Strategy
What is the ideal strategy for fund raisingInvestor Readiness Report
The Investor Readiness Report is prepared by business, industry and financial experts relying on the various documentary submissions by the company. These include their investment pitch, promotional videos, marketing material, business plans, strategic plans, statutory filings, details of their founders and other documents.
Post validation of the documents, one on one meetings are conducted by business and financial experts to understand the business model, to accurately assess the business opportunity and to provide investors with a fair sense of investability of the business venture along with associated risks, if any.
Details of the Investor Readiness Report
The report constitutes assessment of the venture on eleven major Parameters and 130 Sub-Parameters
The report contains an overall quantitative score for the venture and individual scores across the eleven parameters
Each quantitative score is published with a percentile score as well. This is to reflect the relative standing of the company vis a vis its closest peer group
Detailed one on one meetings are conducted by business and financial experts with the Founders and Management of the company
The quantitative scores are derived via a proprietary algorithm that accounts for various factors including the stage of growth of the company and normalizes as well as harmonizes the scores for greater accuracy
A qualitative commentary is provided by the business and financial expert for each of the 11 sub parameters
An overall qualitative summary with the strengths of the venture, areas to be focussed on and a suggested funding strategy is provided as a summary opinion on the ventures investability
The tool has been tested over two years and for over 10000 companies in five countries
The eleven assessed segments of the report are:
- Potential of Idea
- Corporate Setup
- Market Size & Opportunity
- Competitive Advantage
- Quality/Skill & Diversity of Team
- Product/Service Maturity
- Executable Business Plan
- Financial Robustness
- Investability
- Exit Strategy & Probability
- Governance & Risks
Peer group comparison is done based on various parameters. At the first level the company is classified in one of the below three categories:
- Pre-Revenue
- Post Revenue but Pre-profit
- Post Profit (at EBITDA level)