As a part of the vibrant early stage entrepreneurial market, YourNest receives an average of 75 new proposals every month – across industries and domains. They are a mix of product and process ideas, complex and simple constructs, audacious visions and opportunistic responses to market needs. The brains behind them are brimming with energy and optimism and represent the DNA of an ambitious, confident, risk taking, entrepreneurial India.
Each start-up idea, which reaches us, is studied thoroughly and rigorously. Meetings and calls are scheduled with the ones having –
- Potential: Idea serves a significantly large addressable market.
- Proof of Concept: Crossed the incubation stage where the product/service concept has been proven.
- Customer Validation: Customers' confirmation of the idea's usefulness.
- Clear Roadmap: Ready with a Go-To-Market plan.
- Leadership: Entrepreneur demonstrates integrity, passion, courage, resilience and focus.
- Team: Complimentary, balanced talent pool – visionary, an execution champ, and a domain expert.
The start-up idea and the team, which interests us, is run through our evaluation matrix, comprising 73 parameters. At this stage we deploy multi–tiered evaluation model. We consult our panel of mentors and the experts among our investors. Start-up proposals are referred to the investment committee based on our gut feel and our ability to add value to the venture.
These parameters include –
- Value Proposition of the Offering: Differentiators, entry barriers and sustainence.
- Readiness for Go-To-Market: Existing customers and their feedback, sources of revenue, execution strategy.
- Management Depth: Clarity of command, level of commitment (no hedging of bets).
- Business Model: Financial viability, funding requirement.
- Exit Prospect: Time and options for exit, expected exit valuation.
- Risks: PESTLE (Political, Economic, Sociological, Technological, Legal and Environmental)
- Valuation: Pre-money valuation, comfort with investor protection rights.