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
