Lets be clear – ideas are cheap. They’re everywhere, but most just don’t make it past a smart review. Those that pass into our paddock go through our tripod-test, and after assessment they get funded by Salvo and its investor group.
Not for charity – for pick of the crop in follow on investment. For equity – but not at the eye watering levels that seem to be all too common. For real and agreed value.
If we can show it’s got the chops to make it to the next gate, we help structure the company, connect it with the next investor layer, start to build the shareholder agreements and early governance and above all reduce risks as fast as possible. Then it’s ready to move it into its first engagement with the cold hard world.
Killing ideas early is a win not a failure, if they aren’t going to make it
‘Ideas’ can mean ‘things’ (machines, electronics, new science and manufacturing methods and more) or ‘big data’, or ‘commercial’ concepts – and we like it most when they’re all of these. ‘Things’ based businesses are the ones that suffer the hardest investment path. Fortunately, we have been there and done that. This is a key part of our core skillset.
We test the idea. Then we re-test it. And we keep testing. And if the viewpoint swings away from positive, we act fast. If it stays on target, we help to build a strong business case and work diligently to reduce technology risk. This gets Newcos investment ready with a no frills approach, so the business is ready to attract follow on investment. And we bring a pre-qualified network that starts that oh-so-critical and oh-so-tricky investment leg growing.
With connections to significant investment developing, it’s time for the idea to grow up. We help with this process – building governance, hiring team, preparing the business to stand firmly on these three well grown, handsome and robust legs.
Then our work is mostly done. So we start to reduce our involvement…