In order to answer that we must, first of all, ask the following question:
What do startups need?
In our experience, startups generally need guidance and a strong network, in addition to the sought capital, in order to fulfill their full growth potential. On top of that, the funding support shall be continuous, as a single cash injection cannot provide the necessary resources for a good long term success strategy.
What do we provide startups with?
Our board is made up by experts in a variety of relevant fields, who help us provide companies with the guidance to a path of growth. We also provide portfolio companies with strategic network contacts to help them expand through new channels and support their work closely ensuring accelerated development.
Neo Gravity is the 4th successful investment fund of serial entrepreneurs active in Europe since 2005 and it‘s based in Sofia, Bulgaria.
At NEO Gravity, we rely on every investment we make to be successful. We therefore work with each investee closely. We look to build strong, engaging, long-term relationships with portfolio companies, which is why we pay such close attention to the founders and team, ensuring their vision and dedication align with our expectations.
We have seen many startups that struggle without this kind of support and we put focus on providing it with the aim of creating more added value as a fund.
The investment strategy we follow is to build increasing stakes in high-end consumer goods & services providers and in personal mobility. Investee companies and targets may be based in SEE but operate on a global scale.
The market is changing
The rapid digitalization of the global economy, convergence of EM economies to Western standards, and spread of the pandemic have changed the purchasing behavior of the connected consumer:
Taking market trends and general startup necessities into account, the fund was created to fill the existing void in both.
Before investing in any startup, we take the following aspects into consideration:
Team: we meet the team behind the project and let them tell us about how it came about and what plans they have for its development. We look for experienced, passionate, and well-balanced teams to help reach their full potential. Founders should be determined to make their business grow and open to receiving guidance.
Market: we look for a fairly large addressable market with solid entry barriers and strong growth potential. Knowing what shares of that market companies are realistically planning to occupy is key.
Competition: analyzing if there are any high quality, entrenched, competitors occupying the market or if, ideally, the competition is not too concentrated. The company´s competitive advantage is key when analyzing how it will succeed in the market.
Clients: we like to see that the company already has a proven record with clients with aspects such as: the number of clients, strategic customers, feedback received and a high retention level. Sustainable mobility and consumer goods are both experiencing tremendous growth in the past couple of years and consumers are, slowly but surely, gravitating towards sustainability and environmentally friendly industries.
Business Model: the company should have a well-thought out and viable the full business model and, preferably, developed disruptive and differentiated technology. The business model must include expansion strategies, be flexible to external challenges and an exit plan. Companies with a business model based around sustainability is preferred, following European ESG trends.
Finance: we analyze the financial structure of the company; founders should be careful when allocating resources into hiring new employees, marketing campaigns or production. Avoiding cash burning is one of keys for survival.
Legal: founders must make sure that their company is clean, from a legal perspective, before pitching it. We won´t invest in a company experiencing legal issues with third parties or owners themselves.
These are, in a nutshell, the characteristics we look for in a startup, as a response to market trends, and what we provide them with and our philosophy as a VC.
Send your deck to email@example.com for further information.