Alpha Start-up Due Diligence
Part 1: Idea/Product
For investors, lack of data is one of the most adverse problems when analysing an early-stage start-up, but we are aiming to solve this via our forward thinking, tech-centred solution, i3D Protocol. The i3D Protocol offers investors the opportunity to do this as well as partake in community consensus decision making. As part of our mission to offer better due-diligence access to investors, we have created a series of articles to examine core areas that are essential to a healthy due diligence process: Idea/Product, Team, Market, Competition, Business Model/Financial, and ESG
In this first article we’re going to focus on the Product or Idea that is ultimately at the heart of most investment decisions.
Context
The Idea or Product is analysed on factors that look to match the problem the company is seeking to address against the solution they are proposing. It aims to examine the I&P in terms of where it sits in the ecosystem in which it is operating and how expansive the team vision is. Success of the I&P is often related to the Competition, and Market & Customer sectional analysis.
Key questions an investor should consider while doing their own research.
- Does the Idea or Product solve a real-world problem?
The proposed or existing Idea or Product should solve a real-world problem or pain point — this should be clearly articulated as a Value Proposition
2. Does the Idea or Product warrant decentralisation?
If it doesn’t have a reason to use decentralised technology, people won’t adopt it
3. Do you think there is a big enough market for this Idea or Product?
Do you see a future growth market, or is there already substantial traction for what the company is offering?
4. Has the Idea or Product been designed with a simple User Experience?
This is a measure of the User Experience for a customer and whether there will be sustained adoption for the product
5. Is the Idea technically achievable?
This indicates whether the idea is simply an ‘idea’, is technically possible or a working solution to solving the problem
6. Does the Idea or Product have a ‘technology ready level’ at a minimum viable product (MVP) stage that is in testing or being monetized?
A higher score demonstrates degree of commercialization of the product and indicates that Go to Market is viable
How does the i3D Protocol use Network Effects to solve the problems in Alpha Due Diligence?
In distributed intelligence systems, and particularly in due diligence, both “skin in the game” and reputation management are needed to ensure that workers are doing their utmost to strengthen the network and build its credibility. Invluencer is creating a reputation stakeholder economy based on gamification: the i3D Protocol powered by i3D Tokens. Stakeholders include investors who subscribe (via a utility NFT) for business intelligence and create a liquidity pool for experts to complete scoring of opportunities, and experts who purchase and lock up tokens to allow them access to opportunities to earn from the liquidity pool. Investors can be both an investor and expert, thus having the opportunity to earn back their subscription.
Methodologies include the triangulation of data points from the products of Invluencer: i3D Arena (an Inner Swarm of Expert analysts), i3D Rapid App (a greater network of Outer Swarm analysts) and a technical component based on studies of success factors. In an ideal scenario the triangulation of data points allows for the technical algorithms to be fully developed into an automated predictive model.
Through its utility i3D Angel NFT for access control, the protocol grants access to investors to the data generated within the protocol and allows for governance based voting on the top projects to invest in through a Upsilon Token (Dry Powder Mining Fund). The Upsilon Token is initially seeded via a TGE (Token Generation Event) of the i3D Token in a public sale with the protocol being the first client of the Fund. Yields are available to the i3D Treasury to pay the network and create growth.
More information available in our Whitepaper
Very importantly, the above is not financial advice and is a snapshot of the processes we run. You should DYOR!
You can reach out to us here in the comments or on any of our social media channels.
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Need more detail?
Main site: Invluencer
i3D Angel Minting site: i3D Angels
