What do we at CSVP Fund, look for when we invest ?

How do we identify the Super-Achievers ?

The only question we ask ourselves is - does the Company have the potential to become a Value-chain Controller ?

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Our 3 Stage Evaluation Process:

1. Impact Creator: The startup should be able create significant business impact for its customers. It should ideally become a critical part of the customers’ business in long run.
2. A simple measure to evaluate the impact-scale is recurring revenue-per-customer and growth in revenue-per-customer. Typically, customers are willing to pay a tenth (or lower) of the “impact / value” created for them by the startup. Therefore if the revenue per customer is low (<$10,000), it’s nearly impossible for the startup to scale meaningfully. The growth in revenue-per-customer signifies the extent continuous additional value-creation.
3. Category Leader: The startup needs to have a path to elevate from an Impact Creator to a Category Leader – a position of stronghold in its category via a strong product IP, technology differentiation and unmatched intelligence. Category Leaders command a strong value in their ‘category / vertical’ of business and become indispensable to their customers.
4. A key measure of Category Leadership is the market share of the total opportunity that can be captured by the Company. Typically, a Company will not be able to garner more than 10% of the total market. Therefore, it is imperative for the market opportunity to be large enough for even a10% market share to create large value (10x-50x).
5. Value-chain Controller: When a Category Leader enhances its product-offerings to cater to multiple stakeholders in the value-chain, creates intelligence that can potentially transform how the business operates and becomes an integral part of the entire value-chain, it yields tremendous power as a ‘controller’ of that value-chain. This is the point at which value multipliers start growing exponentially (100x+) because the ‘Controller’ starts tapping into previously untapped & unknown value-pools.
6. Learn more about: CSVP Fund | CGES Index | Enterprise SaaS

~ Vatsal

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