This weeks masterclass conducted by our very own CEO, Dr Alex, covered the topic of investments. He began by asking questions from a broader context of financial investments.
Questions raised:
- Why do organizations and various types of entities invest?
- What are the motives and intentions behind these investments?
- To make money?
- To gain influence?
- To create jobs?
- Personal and organizational gains?
- Greed?
- Build wealth and capital gains?
In short, these questions lead us to consider the kinds of investors we are mostly likely to encounter during our entrepreneurial journey which is heavily dependent on the stage the start-up is in. We examined the four types of investors that budding start-ups will most commonly interact with.
- Venture Capitals (VC)
- Corporate Venture Capitals (CVC)
- Angel Investors
- Family Offices (FO)
“When you understand the needs of the investor, you will then be able to understand how to engage them” — Dr. Alex
Here are some of the interests and concerns of each investors as described by Dr. Alex:
- VC’s — Can the team execute the business model for targeted matrix?
- CVC’s — Can the team develop the product that we are in need of?
- FO’s — Can the team deliver the profits that we are after?
- Angel investors — Is the team coachable?
All things considered, the most crucial factor to address is how our start-up can fulfill the requirements of each investor at a certain stage. At the end of the day it still returns to the most fundamental principles of the client-patron system. What can you offer in return? Not only pertaining to financial returns but also about “Who needs who?” and “What are the roadmap and outcomes I can promise my investor?”.
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Nothing like an exhilarating game of tennis with the guys to end the week.
Till next week.
