Posted 1-15-21
According to thegeniusworks.com, the global start up economy for technology-driven companies is currently valued at three trillion USD.
Context Capital Asset Management, LLC observed that some venture capitalists are hesitant to invest in technology-driven, growth assets because of the potential risks systematic and market risks. The risks of growth assets are as many as the investor cares to focus on including a negative return. On the flip-side not investing at all is also a risk if an opportunity in a particular industry is missed where the return on investment (ROI) that has an average of 25%. and can reach as high as 700%. Early-stage investors such as angel investors, private-equity firms (PE), and venture capitalists (VCs) determine if a startup is venture investible through the analysis and assessment of the functioning (or non-functioning) core team, the technical abilities and expertise, the team’s vision, planning, motivation, marketplace need, leadership, chemistry, timeliness and dedication. A growth asset is a long-term investment with the most risks within the first three years of their initial investment.
To determine a sound investment, investors can identify resources which can determine where a specific startup is on their path to market. While conducting a custom comparison / SWOT analysis for a beta online event startup company, Context observed patterns through three, cursory, key indicators in which the minimum viable product (MVP) can be determined. The MVP is essentially the appropriate time to bring a product or SaaS to market.
1. When was the startup founded? The first key to determine a potentially available investment opportunity is to determine when the product was founded. I have been fortunate to know and have been exposed to a number of founders and co-founders who are clearly ambitious, have a strong technical lead on their team, significant expertise and depending on their work load, the time. Building and bringing the company to market takes a little under a decade depending on the number of team members as well as the roles and responsibilities taken on by each which leads us to the second key indicator.
2. Number of employees. The second key indicator that has a direct correlation of a product’s MVP is the number of employees. Approximately, two out of twenty-seven have been working hard over the past decade and two others just started and are currently coming strong out of the gate, testing the site and getting feedback through freemium models. The other twenty-three startup consisting of thirty and over employees, have clearly gone to market and all have incorporated the subscription model.
3. Length of time to build. In early 2020, a BIMObject business development defined the success in the tech startup world as having 1.5 million users. After reviewing twenty-seven companies from Toucan in New York City, to HypersayEvents in the United Kingdom, to UberConference in San Francisco, it is determined that it takes a solid eight to ten years (sometimes sooner) to successfully go to market, obtain a significant reputation and client base in order to be deemed venture investible.
Context Capital Asset Management, LLC is a literal bricks and mortar construction management consultant company and is introducing a business line that assists the planning and development of international tech startups with the goal of making industry processes more efficient through the development of technology and to make the Construction Industry safer through new technologies. A Context project manager is beneficial in moving the tech development team forward by focusing on SaaS and most recently SaS business development, DevOps processes and work with VCs in determining when to release it as a minimum viable product. Variables include the ability to demonstrate a path, set goals and to develop go-to market strategy, motivate and be a part of the core team and to share a common vision. We represent companies around the world and provide startups with the right connections to do business in the United States. Feel free to call for additional information and to learn about our success-based fee.
The material on this article represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed to be accurate, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. It should not be construed as advice meeting the particular investment needs of any investor.