Investment Factors
Smith Global Ventures looks for companies which have the potential to successfully execute their business plan and show a clear path to profitability. We strive to work with management teams who understand the importance of value creation and want to build lasting companies. With any new investment opportunity, SGV carefully considers the following:
- Does the Management team have energy and passion? Are they experts in the space? Can they sell key customers? Do they have experience with related markets, customers and suppliers?
- Is the product or service substantially different from current offerings? If applicable, is the technology ready for commercialization? Is the IP protectable?
- Is the business segment large and growing rapidly? Do customers truly need the company’s products or services? Is there sufficient perceived value to yield an attractive gross margin? Are there entrenched competitors in the market?
- Are the projected revenues, profits, and market share realistic? Is seasonality an issue? Are there any government agencies which may block sales? Has the cost structure been established and how does it compare with other companies with similar business models?
- How much time is required to achieve profitability and positive cash flow? Will the company have enough cash after funding to make it to the next financing round? Are there sufficient resources to overcome any identified risks?
Copyright 2016 Smith Global Ventures
