To have the privilege to be in on the ground floor of new companies or new technologies created by leading individuals in an industry can be one of the most rewarding and gratifying experiences. The development and growth of mankind is driven by these vary forces. These situations are not only rare and difficult to identify, but also difficult to have access to.
Through key contacts in specific growth industries, Cobalt Capital is constantly alert to these extremely high return opportunities. But opportunities like this also carry risk. Should you invest? How do you know how a given opportunity fits into the global vision of emerging technologies?
The professional staff of Cobalt Capital clearly shares your concerns. In addition, our professionals will help you evaluate your acceptable level of risk in relation to the opportunities at hand. In gauging these various factors, the first place our staff begins is with analysis of opportunity itself. Through accumulated experience, several key factors have been identified over time:
1. Is the target industry in a mode of growth, transition, or a mature industry? A growth industry is a leading indicator of future prospects. On the other hand, an innovative idea, no matter how good, will not have access to an expanding market in a mature industry, and is therefore is not under consideration here.
2. If the investment is technology based, is the nature of the technology such that it will be viable in a reasonable time frame? What are the expectations and dependencies that might influence the time frame.
3. If the opportunity addresses a relevant problem, is the infrastructure in place to support the idea?
4. At what stage is the emerging market? Are there potential competitors and do they measure up to this investment?
5. Does the staff have a solid track record, or experienced management to guide technically fresh and qualified individuals on their journey?
6. Does the market have a projected value of $500 million within the first few years. If the market seems smaller does the investment have a very strong proprietary, trade secret, or technology patented position in the market place?