Why Smaller Opportunities May Be More Interesting to Investors than Big Ones
Right after the New Year comes the JP Morgan and related conferences. It’s the financial equivalent of Tinder for investors and companies seeking investment.
Most presentations given by companies seeking investment start out the same way. Big opportunity. X million people suffer from the following condition and our technology is superior and offers significant benefits to physicians and patients. What smart investors increasingly will focus on is reimbursability, pricing power, and confidence in achieving your forecasts. And smaller opportunities where you can hold a strong to dominant position will focus your use of funds and result in greater valuation than larger markets where you are only a minor player.
The key questions you need to answer:
- Market size: How large is the addressable market and what market share can you obtain?
- Difference: Is the difference you’re offering real and can you validate it?
- Money: Is there a projected net profit after development, staffing, and marketing costs
- Accessible: How financially reachable are the customers you need to reach?
- Exit: How much could this opportunity be worth and what’s the exit plan?
Red Team Associates has helped dozens of companies address these questions and support their efforts to obtain funding or licensing deals. We’ll be at JPM. Let’s set up a time to talk.
Harris Kaplan, Managing Partner