It’s a Tough Old Time for Investors. Can the Right Data Save the Day?

Sep 6, 2021

The market is both competitive and uncertain. The workplace has transformed, and new technologies mean that verticals are changing at a speed never witnessed before.

Investors have a whole new obstacle race to manoeuvre: trying to spot challenges, opportunities, threats and discrepancies quicker and more thoroughly than their competitors, so that they don’t miss the next unicorn, or alternatively, land themselves a donkey.

As is the case with most challenges of the last few years, we believe that science can ride to the rescue. Indeed, we’ve observed as science has saved deals that we’ve consulted on, a wealth of otherwise wasted funds, and last but not least, a good, few reputations.

Real and accurate data, touching every step of the funder journey from fast, effective due diligence to smart, industry specific decision making and seller alignment, will ease the path for funders and make the seller’s journey considerably less stressful too.

Here’s how the right data can help with the key challenges funders face:

Due Diligence

It’s imperative to identify opportunities before competitors, but most investor documents and reams of generic industry information mean little out of context. Here are the questions effective due diligence should answer in an ideal world:

Addressable market

How many real, verified prospects are there out there?

Potential revenues

Are the profit margins and growth predictions being touted achievable?

Competitive landscape

Who and where are any competitors? What are their strengths and weaknesses? Where is this opportunity positioned? What differentiates it?

Industry landscape

What products and solutions are on the way that could make this opportunity yesterday’s news? What threats and value-adds are on the horizon?

Required opex and capex expenditure

Is the marketing budget big enough? Is the required technology in place?

Gaps among the senior leaders

Can they deliver? Is the skill and expertise to maximise the opportunity ready and available?

Go-to-market strategy

Is it viable and effective? Will it resonate with the addressable market and targeted buyer persona?

Smart, agile decision making

Should you up your offer or throw the towel in? How much flexibility is the opportunity worth? Effective due diligence will tell you how much you can adapt your offer with speed and certainty.

Seller alignment

It’s a highly competitive industry with a lot of dry powder lying around. Funders need more than cash alone to win the deals. Sellers don’t want investment from funders who’ll deliver too little with regard to expertise or demand too much because they don’t understand industry challenges. Investors need to make clear that they are a positive addition to the team—a sound understanding of the industry will support this.

We’ve spoken and worked with a wealth of sellers and investors and the same challenges come up time and time again. The right access to the right intelligence at the right stage of the process can make all of the difference. For more insight into how business intelligence helps investors and sellers, you can go to www.larato.co.uk or get in touch with our data specialists.