A growth strategy needs to go well beyond passion and a vision for it to succeed. It requires good mentorship and funding to commercialize and accelerate revenue growth. Some use narrow criteria in specific industries. Others use broader criteria that may be industry neutral but focussed on the potential of an idea. To this end, it is helpful to learn about the screening criteria used by Arcus to fund early stage companies.
An experienced industry specialist to negotiate the best deal possible
- Improve the value and marketability of your firm
- Tap into a network to manage the sale process
- Finance your start up or explore an acquisition
- Early stage VC Funding and Mentoring
Venture Capital and Mentoring Program
If you meet the following criteria, you may want to consider contacting Arcus to discuss how our mentoring and venture fund can help your company.
1. A persuasive idea that solves a problem
Most entrepreneur believe that their ideas are unique and worth considering. Few are really original or have the potential to be successful. Hence, Arcus looks for a capacity to be critical and practical about the potential of a business. This requires an approach that is grounded in reality and knowledge of the market and consumer. We also look for ideas that offer an efficient and unique solution to a problem that consumers or businesses want to solve. The solution must be compelling and tested in market with some evidence of positive results.
2. A strong core team
A strong core team with technical and management expertise is integral to our screening criteria. Many founders have the capacity to launch the company and attract talent to fill in gaps that may impede the success of the company. We look for individuals with integrity, drive and a capacity to grow.
3. A significant market opportunity
Arcus focuses on technology based product/market opportunities. We are looking for the next Uber, Google and Facebook. However, we do not just focus on the potential of the service. We also look for first mover advantage in markets with significant scalability. Ideally your focus is on a sector that is not crowded with players and where there is a problem that needs to be solved or an opportunity that has not been addressed as yet.
4. A “wide-moat” technology
Why is your technology special? What evidence do you have that customers desperately need it and would readily accept it? Once you launch your product, do you have evidence that you can maintain a “wide moat” that will prevent others from copying it and making it redundant? In other words, can you stay ahead of the curve and constantly reinvent the idea and evolve to stay unique?
5. A sustainable competitive advantage
We look for disruptive technologies that change the way consumers interact in a space. Great examples are Uber that offered a cost effective and easier alternative to taxis or Air BnB that offered an alternative to hotels. Both ideas were first in their categories and addressed a specific unmet need. In Uber’s case, it was access and cost. And in Air BnB’s case it was value and choice. If you idea offers a value, cost or choice advantage, we want to talk to you.
6. Realistic financial projections
Do you have evidence that consumers will buy your product? Even better, do you have at least a year of revenue from selling your product. Also, do you have feedback from consumers confirming the value of your product? Remember, we are not always looking for significant revenue. We are looking for users of your product. Arcus is more likely to select a product with thousands of users and low revenue than one with a few users who all subscribe to a product. Our primary focus is on scalability and conversion potential. If you already have the users, Arcus has the capability to convert these users into paid customers quite rapidly.
7. Validation by partners, users and experts
A key determinant of funding and mentoring eligibility will be proof of validation of the solution bypartners, users and experts who have experienced the product and vouch for its potential. At Arcus, our primary focus is on supporting entrepreneurs with vision, drive and courage to be successful with their innovation. If you believe you meet these criteria, please fill out this form andemail it to Merril Mascarenhas, Managing Partner at Arcus.