In the first place, I just can’t stop emphasizing the importance of mergers & acquisitions and fund raising in the startup eco-system. Fund raising and M & A have to increase and they have to increase at a fast pace. Some market intelligence platforms are completely changing the way startups will be funded in 2020.
For Instance, let us first understand, why on earth is it happening slowly ? Investing in a startup is a critical decision for any V.C. (Venture Capitalist), P.E. (Private Equity) Fund or corporation. The first step towards it is to discover exciting investment opportunities that the fund can share synergies with. All investors largely depend on internet or personal connections to discover startups. Strange? but it is true. This not only makes the process of reaching the right startup slow, but also funds lose out on discovering many startups.
Subsequently, A lot of smart entrepreneurs have identified this problem statement. To name a few startups helping funds to discover startups such as matter mark, data fox and CB Insights. The one that really impressed me is tracxn.
As an example, Tracxn is founded by Ex. V.C.s Abhishek and Neha. These IITian’s have a team of 200 dedicated business analyst. These B.A.s punch in over a 100 million data points.
This robust tool helps V.C., P.E. and all sorts of funds to discover potential leads around the globe at a simple click.
I am listing down these 5 points market intelligence tools need to keep in mind to change the future of how funds discover startups to acquire or invest in.
A robust database that helps funds discover startups based on geography, company stage, Founded in etc sector wise. This powerful feature makes startups discoverable to funds in the way they want to filter out the relevant for them.
This is a robust database of various sectors startups are venturing into. This set of marketing intelligence help funds educate themselves about types of sectors, interesting business models sector wise, investment trends, major investors and news around the sector etc. This helps funds make faster decisions on what sectors to focus on while discovering startups.
Now that the fund has shortlisted few startups to work on, it is wise to compare those startups with their competitors. Voyla, funds can now use the same tool to compare their favorite startups with competitors to figure out the value proposition.
Daily Newsletters -market intelligence
The same tool also circulates daily newsletters to keep the fund managers updated with all the news on key investments, acquisitions, unicorns etc.
Company financials and valuations
Now that the fund has figured out its focus sector, shortlisted few startups that they think have the synergy and also compared those startups with their respective competitors. These kind of tools empowers to take in depth insights of those startup’s balance sheets, cash flow reports and even valuations.
Isn’t it amazing how a platform, a team of committed analyst and technology can empower the entire start up eco-system ?
By the way let me conclude by saying that I have researched many tools and identified their respective features. Not all tools have all the features. However the one that I recommend is tracxn. This powerful marketing intelligence tool has every feature any fund should need to discover relevant startups.
Folks, if you are a start up or a fund manager, marketer or professional do come back to me and write me on firstname.lastname@example.org and share the challenge you are facing right now. I will surely research possibilities that works for you. And yes it’s free.