Investment Development

On 12 Mar., 2020

Today’s highly-competitive and fast-changing market has created a challenging landscape for start-ups. Only one in every 50 start-ups established each year is ultimately successful. 

Investment Development

Today’s highly-competitive and fast-changing market has created a challenging landscape for start-ups. Only one in every 50 start-ups established each year is ultimately successful. 

 

95% of SMEs just don’t make it!

 

There are numerous factors as to why start-ups don’t maximize their value. The top three reasons include: 

 


  1. A lack of need for the solution on offer. Alternatively, the solution may not solve the problem (42% of start-ups). Often, an Israeli start-up hurries to develop a solution without fully understanding the problem. This is usually because we rarely work with a relevant design partner (the solution’s end user). Companies often develop great technology but choose the wrong vertical or industry.

  2. Bad P&L management. In early stages, start-ups tend not to employ a professional CFO and many entrepreneurs make mistakes that result in faster cash burn.

  3. Raising too little funding: In Israel, start-ups tend to raise less funds compared US or European counterparts.


  4.  

 

Other important factors exist as to why the “stars are not aligning”, but the three combined factors above result in a shorter runway and a ‘trial and error’ mentality, which lead startups toward stagnation or even shut down.

 

The value of a faster time to market is understood, and we are all aware of the fact that often, it’s not the 'best technology that wins'. Furthermore, startups sometimes focus on developing the best product, but forget to have their tech out there in time. Sometimes, it is too late (new competitors arise, the market is running fast forward and you find yourself obsolete). Successful startups are a combination of good execution and optimal timing.

 

The challenges companies facing today are well-known. We know that not every company will be sold to Microsoft or Google. And that is fine! Entrepreneurs need to realize that there are many second and third tier potential exits, companies and corporations that are looking to diversify or grow through M&A’s, many of which come to Israel to shop around. 

 

In case you feel your start-up is stagnated, stuck, is not growing exponentially and time/money are running out fast, know, there is a new way of maximizing your start-up value. This process is called investment development, which brings in-depth knowledge of the landscape, and a clear methodology that combines technology, channels and business development (not trial and error), to give both startups and funders the results they are seeking. 

 

Investment development includes a well-defined and optimized set of actions we have coined “revamping”. It starts by analysing and synthesizing your start-up’s weakest links, the ways to tackle them, and creates a feasible action plan with a set of “quick wins” that would better re-position your start-up. It aims to plan and execute a trajectory that will result in a strategic investment or M&A.

 

Investment development methodologies help you determine and carve out the route that will give you the highest probability of success. It serves to repackage your start-up, and in most cases, disrupt the ecosystem by applying the technology to other, more receptive industries.  

 

About Fusion Partners

 

An opportunities and investment development powerhouse, Fusion Partners transforms challenges into opportunities, and helps start-ups and SMEs to maximize their value.