PROFIT.ENTERPRISES is a knowledge-based technology platform that brings properly packed deals to the investors’ table
Every investor dreams to find a unicorn – a highly profitable and scalable startup. It is not a simple task to perform, using outdated screening methods.
Envision 1
While about 300M startups launch annually, there are 700 unicorns because:
- Investors struggle with outdated and ineffective deal flow.
- Startups are unable to show their path to profit
Today, equity investments are shifting away from traditional fixed capital-intensive areas (real estate and material production) towards digitally-intensive and knowledge-driven businesses.
Envision 2
Startups in new healthcare, high-tech, and software industries may generate high profit without a corresponding level of investment thanks to another structure of assets and reduced demand for fixed capital.
In the modern knowledge economy, intangible assets (immaterial and knowledge-based) become the dominant form of investing: in 2021 the ratio of intangible assets to total assets was 72%.
Envision 3
The interest of investors in intangibles is growing because:
- Intangibles carry extra value and hold more potential for startups’ growth and scalability.
- Having no physical form, intangibles easily can move globally out of geographic boundaries.
Looking for early-stage business opportunities, investors start the deal flow with sourcing and screening.
Envision 4
While investors continue to rely on gut feeling and manual deal flow, they encounter:
- Incomplete information about startups at the existing investment platforms.
- Time-consuming and expensive procedures with the massive sorting of low-quality data.
- Inability to recognise lucrative business opportunities.
Investors suppose sourcing and screening as the most important driver of returns, and spend up to 22% of their time on this process. For investors, being selective to sort the whit from the chaff means employing data-driven approach and tools. On this way, they need new data intelligence partners.
Envision 5
The challenges of traditional deal flow appear on both sides:
- Founders beatify their pitch decks, having no solid underlining information.
- Investors browse big volumes of low-quality and poorly structured information.
Fortunately, a new knowledge-driven and technology-enabled approach can improve the sourcing and screening process, generating deficient information.
Envision 6
PROFIT is at a forefront of early-stage deal-making. By using the knowledge-driven startup Dossier and the Robo-fitness Validator, PROFIT:
- Specifies profitable business opportunities.
- Make sourcing and screening less laborious.
- Generate reliable information for further deal flow.
The question “To what extent a startup is fit for funding?” is a crucial point in investment decision-making.
Envision 7
The PROFIT’s Robo-Fitness Validator employs algorithms and human intellect to provide three dimensions of startups fitness to meet investors’ requirements:
- Problem-Solution Fit.
- Product-Market Fit.
- Business Model Fit.
Startups’ teams with their skills and abilities bring business models to life. This is why the issue of startup valuation has to be seen from the human capital perspective.
Envision 8
The PROFIT algorithm quantifies team qualities, making it possible to evaluate the prospective startups’ performance. The algorithm makes the team’s comprehensive estimation and calculates how the team leverages intangibles.
Traditionally, founders have limited knowledge of an exit event, and ignore market entry timing. They are not prepared for due diligence.
Envision 9
PROFIT focus on one more dimension of startups’ fitness: Founder-Investor fit via:
- Offering effective protection measures and attractive exit scenarios for investors.
- Modelling market entry timing depends on external economic factors.
- Verifying the key projections (“red flags”).
- Preparing the startup team for due diligence from three perspectives: commercial, financial, and legal.
A pitch deck is the tip of the funding iceberg. Below the surface are located solid justifications for the deck’s numbers hidden from cursory view, but vital for the funding success.
Envision 10
Finalising the startup fitness preparations, the PROFIT algorithm uses the completed Dossier to produce information for comprehensive and robust pitch decks.
Traditionally, founders have limited knowledge of an exit event, and ignore market entry timing. They are not prepared for due diligence.
Envision 11
The PROFIT tools: the Startup Dossier and the Robo-Fitness Validator are fully integrated to shape sourcing and screening transparent, reliable, and not as time-consuming as before:
- If you are an investor, PROFIT offers to make the screening process seamless, directing you to high profitable deals.
- If you are a startup founder, PROFIT gets you fit for funding steadily improving your Dossier.
