Alpha Start-up Due Diligence

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Part 3: Market

For investors, lack of data is one of the most adverse problems when analysing an early-stage start-up, but we are aiming to solve this via our forward thinking, tech-centred solution, i3D Protocol. The i3D Protocol offers investors the opportunity to do this as well as partake in community consensus decision making. As part of our mission to offer better due-diligence access to investors, we have created a series of articles to examine core areas that are essential to a healthy due diligence process: Idea/Product, Team, Market, Competition, Business Model/Financial, and ESG

In this third article we’re going to focus on the Product Market Fit for the idea to gauge whether there is excellent potential for user adoption

Context

The Market for the company examines the planned operational sphere and boundaries of operation. It is an analysis of how clearly identified and realistic the company’s goals and ambitions are. Factors identified and scored should be reviewed in conjunction with a Competition Report.

Key questions an investor should consider while doing their own research

  1. Has Product Market Fit been clearly identified?

Product Market Fit is the degree to which a product satisfies a strong market demand. It has been identified as a first step to building a successful venture in which the company meets early adopters, gathers feedback and gauges interest in its product. Has the company clearly identified who the customers are, are they interested and are there early adopters?

  1. Identifiable Roadmap: Has the Idea or Product go-to-market plan been clearly established?

This is an indicator that the company has a well thought out marketing strategy with defined actionable goals and timelines for growth which are clearly matched to financial projections

2. Is there a noticeable social network or media presence?

This is an indication of interest in the company value proposition and that the business has sufficiently leveraged its internal and external networks (e.g. LinkedIn, Twitter, FB, Others)

3. Is the Target Market clearly identified as a growth sector?

If the primary sector in which the business operates is considered to be a growth sector the business has a better opportunity to become sustainable.

4. Are customer User Profiles clearly identified?

‘Ideal’ customers or ‘personas’ have been identified so that wasted leads and unqualified traffic to the business can be avoided

5. What is the Product Adoption Level?

This is a measure of current adoption rate amongst customers. Its measure goes beyond signed up users and looks at activity, contribution to the product, use of the product, etc.

6. Has the Total Available Market been clearly identified?

The TAM is the overall revenue opportunity that is available to a product or service if 100% market share was achieved. It shows the level of effort and funding that a person or company can put into a new business product

7. Is the projected % of the Total Attainable Market a realistic projection?

This is the segment of the TAM targeted by the company’s products and services which is within their geographical reach. The % they aim to capture should be realistic and in line with growth forecasts, budgeted marketing on growth spend, etc.

How does the i3D Protocol use Network Effects to solve the problems in Alpha Due Diligence?

In distributed intelligence systems, and particularly in due diligence, both “skin in the game” and reputation management are needed to ensure that workers are doing their utmost to strengthen the network and build its credibility. Invluencer is creating a reputation stakeholder economy based on gamification: the i3D Protocol powered by i3D Tokens. Stakeholders include investors who subscribe (via a utility NFT) for business intelligence and create a liquidity pool for experts to complete scoring of opportunities, and experts who purchase and lock up tokens to allow them access to opportunities to earn from the liquidity pool. Investors can be both an investor and expert, thus having the opportunity to earn back their subscription.

Methodologies include the triangulation of data points from the products of Invluencer: i3D Arena (an Inner Swarm of Expert analysts), i3D Rapid App (a greater network of Outer Swarm analysts) and a technical component based on studies of success factors. In an ideal scenario the triangulation of data points allows for the technical algorithms to be fully developed into an automated predictive model.

Through its utility i3D Angel NFT for access control, the protocol grants access to investors to the data generated within the protocol and allows for governance based voting on the top projects to invest in through a Upsilon Token (Dry Powder Mining Fund). The Upsilon Token is initially seeded via a TGE (Token Generation Event) of the i3D Token in a public sale with the protocol being the first client of the Fund. Yields are available to the i3D Treasury to pay the network and create growth.

More information available in our Whitepaper

Very importantly, the above is not financial advice and is a snapshot of the processes we run. You should DYOR!

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Need more detail?

Main site: Invluencer

i3D Angel Minting site: i3D Angels