Presentation on theme: "Criteria that professional investors use in 'winners' identifying process Based on research note Investor Driven innovation: What can we learn from the."— Presentation transcript:
Criteria that professional investors use in 'winners' identifying process Based on research note Investor Driven innovation: What can we learn from the way professional investors spot 'winners' by Clarysse et al. (2012). International Professional Master in Management of Eco-Innovation Anna Aghvanyan
Investments have huge role in the development and growth of businesses. But, H ow to become the next Google? To get funding start-ups must: Have high potential technology, Have clear target Have rapidly growing markets, Have strong managerial support
The criteria for identifying 'winners' with high-technology opportunities and minimum requirements are: CriteriaVenture capital Product Disruptive technology or explicit improvement Good cost/ efficiency Do at least 2 times better Market Existing market: big enough, measurable and reachable New market/ large growth potential General: -Little concentration (few players), leadership potential -Good knowledge of competitive dynamics -Be able to really change the game Management team Proven track record: with previous entrepreneurial experience High energy Experience in the domain Cohesive team that can be easily adapted Return 30-40% return
Recommendations for investment decision making 1. Enhance the advice from the community of investors, entrepreneurs, scientists, lawyers and other professionals. 2. Use certain criteria and personal heuristics developed over time. 3. Be within the network of individuals and organizations related to the innovation and technology process.
Concluding remarks Decision making and identifying process is quite complicated, But if your company succeed in investing in innovative high technology opportunities with rapidly growing markets potential, It will become the next successful funder getting huge strategic and financial profits.