SGC Angels

  A strong but clear investment thesis of new venture startups is one of the strongest instruments employed by investors to consider new opportunities. In the case of founders, knowing how investors develop such a thesis can be very helpful in raising funds. An investment thesis does not apply as a summary of why a startup should be funded; it is a structured analysis of market potential, competitive advantage, scalability, and payoff. When you understand what the investors seek, then you can place your company in a better position. The following is what constitutes a strong investment thesis of a startup. 1. A Large and Growing Market Opportunity The initial component of a good investment thesis is an obvious, large market opportunity. The investors are concerned that the startup is able to expand and gain a significant market share. An interesting thesis contains: An identified target market. Real market size estimations (TAM, SAM, SOM). Marked signs of increasing demand. Acute ...

  Obtaining funding is often the most excruciating yet necessary step a startup will take. It is essential to formulate an incredible vision with a team that believes in the mission, but an investor rarely makes a final investment decision based solely on their heart. Investors make investment decisions based on a disciplined framework called an investment thesis. An investment thesis is a set of disciplined guidelines regarding what type of company, what sector of the economy, and what kind of growth trajectory they are willing to wrap their capital around.     For the entrepreneur, knowing and being in alignment with an investment thesis for startup capital is not only a wise positioning move- it’s a strategic necessity. We will look at what an investment thesis is and how you can position your startup vision to a funding partner.     What Is an Investment Thesis for Startup Funding?     An investment thesis for startup financing is simply a guidi...