Private Equity Investment Assessment Blockchain /Crypto
Blockchain Capital Market Platform
Target is a growing technology company that is well positioned to take advantage of a key market opportunity as businesses are more engaged in the crypto currency and digital asset ecosystem. Target company’s planned launch is in 2022 and expects to grow rapidly. Raise of $6M to capitalize the company and meet strategic objectives.
As part of the four-week assessment review LoBue evaluated the target company in the context of organization and corporate structure; operations analysis; products and services; resulting in a rating of Integrated and Mature (level four on a scale of one to five).
High-level Review and Recommendations:
- Vetted and expanded target’s forecast for five-year plan, with full driver details.
- Reviewed and upgraded the target’s RTS-7 Compliance Assessment. We view this as a measurable indication of target’s “go to market” readiness.
- Our technology assessment affirmed that significant development has been done to ready the target “eco-system” for launch. We have reviewed and updated the target’s technology roadmap, including estimated remaining work effort.
- Reviewed target company products and services and readiness for delivery.
- Evaluated sales, go to market capabilities, and competitive positioning.
- Prepared Sources and Uses Statement to provide LoBue client with expected cash flow demand, as well as identifying potential challenges and opportunities.
- Worked with target to define a more detailed set of performance measurement KPI’s, metrics, and activity indicators for better understanding of post-launch performance.
Selected Detailed Findings and Recommendations
- Focus on very good execution so that their reputation will be a key driver for expanding client and market opportunities.
- “White-glove” customer service is essential for all clients. Keeping ahead-of-the-curve, while scaling will minimize potential service challenges.
- Development of the CRM- customer service system, currently in their roadmap, should be a high priority.
- As a high percentage of revenue will come from cryptocurrency trading fees, the expansion of tradable coins should be a high priority.
- Management should utilize the already developed Crypto Drivers as part of daily, weekly, monthly, and year-to-date reporting.
- Given the technology roadmap development, cash burn, and required regulatory balances, it is imperative that the use of funds be carefully monitored and updated regularly.
- Given the realities in the competition for engineering and programming assets worldwide, the focused recruitment effort should carefully monitor and updated as required.
- Ensuring that regulatory compliance is bullet-proof is an imperative to avoid the very significant fines that the banking industry has suffered over the last several years.
The initiative resulted in Private Equity Client moving forward with $6M investment in current round.
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