Investor Benefits
How do Investors benefit from the Benchmark Survey?
Investors will be excited to learn that evaluating new business concepts just became easier to gauge through the use of the Benchmark Survey. By introducing standards established from the success-failure metrics of previously successful companies, developed by the Entrepreneurial Standards Forum (www.ES2F.net) over the past three years, new business concepts can be quickly compared to this benchmarked "success path" for a current and objective appraisal.
The investor gains an new additional tool to help them evaluate the business opportunity of their interest. The Benchmark Survey findings demonstrate whether the entrepreneur has a good understanding of the business itself as well as the market they intend to venture into. This type of information, learned up front, reduces the unpleasant surprises that often come up later in the due diligence process -- or worse yet, when it's too late and the investment is already made.
Additionally, the Benchmark Survey helps to better align investors with the right entrepreneur and business concept. Investors may see areas of weakness of the business plan exposed by the Benchmark Survey, but still choose to invest because their personal involvement and expertise strengthens or overcomes the concern.
Key Benefits to the Investor:
- Higher quality deals: "Pre-benchmarked" deals are filtered/pre-qualified in order to make the Presenters List.
- Benchmark process is a tremendous value-add tool for the Investor.
- Fewer due diligence surprises later in the evaluation process.
- Better data to align the right investor with the right business opportunity.
- Presentations based on merit of the Entrepreneur's business versus the "slickness" of their presentation.
Why should an Investor complete an Investor Profile? How do they benefit from doing this?
This is certainly new for the industry and something most investors might not initially be comfortable doing. But everything else we are doing is new and those benefits are quickly becoming more evident as each day passes.
Investors are asked to complete their profile when they register. We ask that you simply and thoughtfully describe “word descriptions” of your specific areas of business interests (i.e. green, biotechnology, software) and investment criteria (pre-revenue, cash flow positive, etc.) and personal preferences (i.e. board member, management role, etc.) and areas of expertise. This anonymous aggregate investor data is used to improve the process of aligning investors (you) more accurately and more quickly with entrepreneurs and business concepts of your interests. It improves the initial and overall process of aligning, connecting and matching investors with their target market. The process helps investors to zero-in on their areas of interest more efficiently and timely instead of attending cattle-call events of investors and entrepreneurs.
So you are informed of better qualified (benchmarked) and provide more upfront detail about the entrepreneurs currently seeking capital. As well as you are self-directed towards the businesses you most likely will have an affinity for. On the flip side, we can inform entrepreneurs upfront whether there is an investor audience (market) for their business and capital need. This type of information, shared in advance, saves investors and entrepreneurs money, time and energy and makes the whole process much more efficient.
