The 4 Pillars of successfully investing in ScaleUps
- Discover value in an overlooked asset class
- Understand how to curate great deal flow
Throughout Unlocking Unlisted, we will take you on a deep dive on each of the key areas of investing success.
From the outside and from reading the news it may seem like investing in early-stage businesses (typically unlisted equities) is the easiest thing in the world. You hear investors talk about how they found a company, went ahead and invested and now they’re looking at 50x their money 4 or 5 years later.
What you don’t see is the substantial amount of science and experience that is underpinning successful investment decisions. Failing to follow (what we refer to as the 4 pillars model) leads to basing your investment decisions on “luck”- which can lead to disaster.
You’ll walk away with an in-depth understanding of whether this is for you, whether you would like to be actively or passively involved and whether this fits within your patience and risk tolerance. You’ll gain an understanding of the what, where and how to get started in successfully investing in this exciting asset class.
Join us and unlock the keys to investing in unlisted equities.
Pillar 1: Deal-flow
You can’t get away with only evaluating 5 businesses every year and investing in 3 of them. That’s definitely luck. We’ll take you through deal flow sources and how much you need to be stable. Invest in areas you know, understand your passions and leverage your network.
Pillar 2: Capital/ Portfolio Management
The challenging side of capital management when managing discrete investments is that you should always have a bit of extra money set aside for that unexpected deal that comes past you. When you see a good deal you need to be able to act fast – because they go fast! Then you will need to combine that with sensible portfolio management. We’ll take you through the principles of it all.
Pillar 3: Curation
Naturally, this is the big one. It does not matter how substantial your deal-flow is if you get it wrong every time. We will break down what to look for, what to avoid, classic warning signs and what to do when you discover warning signs. The challenge is you need to learn how to spot companies that will go on to be successful—before they show the clear signs of success!
Pillar 4: Negotiation and execution
If you have ever negotiated on real estate, you would know that most of the money is made on the way in. Investing in businesses is the opposite. If you invest in a business and negotiate too hard or scrimp on its capital needs you may find the founder has walked away or the business goes down, so your investment is now worthless. So how do you agree on valuing something when nobody can agree on setting a price?
We have a whole toolbox of instruments that will help you come to terms that are favourable to you without hurting the future, or your future prospect of making 5-10x on your money.
This segment covers all the bases such as shareholders agreements, term sheets, options and so much more. We will also cover investing vehicles – trusts, funds, VC, direct, etc.
Hands-on & panel
Meet with successful entrepreneurs, adviser and investors. Join the panel debate and throw your toughest questions at the panelists.
Join us backstage at the end of the day and enjoy dinner with panelists, experts, significant investors and fellow participants. Hear their stories and learn from their mistakes. And most importantly, have fun and enjoy.
What you’ll learn
You will walk away with a serious grasp on what it takes to be successful in this space. Where to get started, and how you should develop your own personal plan for the next 5 years or more. Most importantly you will walk away with a range of valuable contacts, a thirst to dig much deeper in your learning and knowing the next steps in your investing journey.