Bosham Capital Advisors’ “Investment Check List”

Bosham Capital Advisors’ “Investment Check List”

 

In evaluating each investment opportunity that we consider, we run through a basic checklist to ensure that the proposition meets certain criteria. This list is by no means exhaustive but provides us with a standardised framework that we can apply.

  • Size of Market Opportunity – is this globally scalable?
  • Macro Drivers – regulation, demographics, technology?
  • Founder – pioneer, true believer, hustler, disrupter, risk-taker?
  • Ambition of the Founder – is this realistic?
  • Management Quality – track record of success & ability to attract world class talent
  • Barriers to Entry – product defensibility, uniqueness, patents?
  • Radical Innovation – how revolutionary is the product?
  • Competitive Edge – is this better, faster, cheaper than everyone else?
  • Under-served Customer Need – does this solve an obvious market need?
  • Competitive Analysis – disaggregated market, consolidation opportunities, M&A?
  • Key Business Risks – how are they being addressed?
  • Governance – who is on their board/advisory board and what do they bring?
  • Capital Structure – previous funding rounds and current cash burn?
  • Management Compensation – what is the incentive structure?
  • Exit Strategy – timeline, expected IRR and possible buyers check list