The Near-Certain Roadmap to Investment Success

Emmet McGonagle

August 25, 2022

No secured debt, no operating assets and no guarantee of future cash flows to finance - all bets are off when it comes to investing in a startup. 


In essence, startups are selling a vision of what their company could become thanks to your investment. According to a 2017 survey carried out by Statista, 58% of startups have less than US$25,000 at their disposal during the startup phase, while only 40% of startups are destined to become profitable in their lifespan. 


However, investors can gauge the profitability of companies by focusing on their potential for investment, which can be found by measuring the level of risk against the size of the opportunity and scale of profit and return on investment, factoring in the time and capital needed to achieve these goals efficiently. 


For example, a startup with a sound business idea and a compelling external market environment will theoretically - based on potential for investment - be able to provide a practical solution to a real customer problem. 


Sustainability can also give a startup the edge against its competitors, with sustainable investing assets totaling US$30.7 trillion worldwide in 2018 (according to the Global Sustainable Investment Alliance), a 34% rise from 2016. Likewise, potential for investment may be influenced by the presence of a working beta product, ideally one which has already been copyrighted as intellectual property.


Jan Lederman, director at Valhalla Private Capital, points to a two-pronged approach which focuses on talent and trust as the key assessor of whether an entrepreneur has the bandwidth to execute their vision of the company. 


While talent can be seen in a sound business model or a working beta product, working with a team which has domain and business experience may suggest that a startup can de-risk business dimensions and navigate unexpected hurdles along the way.


Alas, there’s a limit to the power of hypotheticals. When looking for your ideal startup, be aware of the potential for personality mismatches along the way, factoring in geography, technology, size and target market, as well your own capabilities as an investor.


Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page.

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Workers Call for Pay Transparency

By Emmet McGonagle • November 29, 2023
More than half of workers believe that disclosing worker compensation details on job postings will lead to better equality in pay, according to the latest iteration of LinkedIn’s Workforce Confidence Index . The index - which is based on a survey of 3,302 members in Canada between June and September 2023 - found that 52% of people asked felt that people sharing their pay information (including salary and bonus) would improve workplace equality, compared to 48% in 2022. This number varies between different generations, with younger Canadians more likely to express support for pay transparency (73%), followed by 69% of Millennials, 46% of Gen X and 44% of Baby Boomers. However, 37% of those surveyed remarked that they felt anxious about sharing their pay information - a 2% rise from the year prior. Likewise, just under half (49%) said they felt well compensated for the work they do while 74% expressed that the pay gap between CEOs and employees had become too wide. The people of LinkedIn have come out in their dozens to give their two cents on the topic, with Adrienne Tom , executive resume writer for executives, saying: “ I'm all for salary transparency, so long as the number is clear and legit. Some postings list salary ranges so wide that the actual salary number isn't entirely clear, leaving job seekers confused.” “If you have a manager who is not advocating for the pay gap, you are working for the wrong manager,” remarked career strategist Sweta Regmi , while noting that women in Ontario earn an average of $0.87 for every dollar earned by men. On the topic, she added: “Salary ranges with job postings can help close the gender pay gap while allowing companies to find qualified candidates more quickly.” Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page .
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