Spark10, through its managed funds, aims to enable entrepreneurs to raise investment from savvy investors who understand and are keen to bring to the fore disruptive innovations. We aim to
- Accelerate and simplify their fundraising process.
- Empower founders by giving them access to the previously inaccessible knowledge networks and resources to build stronger and more innovative companies.
- Create a new form of entrepreneur-friendly venture capital, which has enough resources and talent to analyse each opportunity.
- Ensure every pound of investment is spent as effectively as possible.
The founders provide an essential anchor for the company. When assessing teams, we look for evidence of the discipline that will be required for them to build a strong, sustainable business.
Looking for businesses where there is a large potential addressable market (but potentially more competition), or smaller niche markets which have not yet undergone significant disruption from technology.
Innovative products and services that can potentially disrupt the respective industries and create a huge impact on both customers and markets.
Truly scalable business models display one or all of the below traits:
- Commercializing game-changing technology with the potential to provide solutions to global problems – i.e. exporters
- Providing economic benefits to their direct and indirect customers – i.e. competing based on value rather than price, through improving customer productivity.
- Generating a growing stream of predictable income, resulting in less resource requirement for ongoing lead generation and more available resource for product development.
- The potential for significant growth.
- High calibre founding management team.
- Sustainable competitive advantage and/or protectable technological innovation.
- The ability to build partnership relationships with customers based on Exceptional knowledge;
- Being prepared to work with customers at the product development stage through to volume manufacturing.
To ensure consistently high-quality investment opportunities, Spark10 has put in place an extensive multi-layered process:
- Weekly meetups to discuss all potential investments currently in the deal pipeline.
- After a detailed review of all first-hand research and meeting notes, a collective decision on which investment opportunities to take forward.
- Chosen deals will advance to our detailed due diligence process.
- Spark10 will request and assess all financial, technical, and legal information from the company before presenting this information to the investment panel.
- If the panel agrees that the investment is in line with our investment criteria, Spark10 will inform the company of the level of investment we are hoping to commit to and issue a term sheet.