PROFESSIONAL ANALYSES
INVESTING IN A NEW OR EXISTING PROJECT
In new project
An investor prefers making money, instead of losing money. The information about a new project is usually one-sided
and acquired by means of presentations and a minimum of documentation.
These will as good as never provide a clear view of what the hardest elements are, if they are correct, if it is a feasible
project and at what (realistic) cost (what will my money be spent on?). The first funding round usually has a domino
effect, because at certain moments during the process unforeseen circumstances will occur and extra funding will
inevitably be needed.
and acquired by means of presentations and a minimum of documentation.
These will as good as never provide a clear view of what the hardest elements are, if they are correct, if it is a feasible
project and at what (realistic) cost (what will my money be spent on?). The first funding round usually has a domino
effect, because at certain moments during the process unforeseen circumstances will occur and extra funding will
inevitably be needed.
To fund a project correctly and avoid problems, in any IT project/product, it is recommendable to firstly collect all
knowledge and review it to create a clear image.
A professional pre-analysys is advisable. We approach this by means of reviewing of documentation, interviews,
software viewing and an assessment of the whole project. The latter is done on the basis of for example feasibility,
cost, in-house knowledge, product USPs, working processes, etc.
Through this process it will become obvious whether it is worthwhile to invest and if so, in which way. With the analysis
reporting you can make a sound decision and when moving forward they will add value, save time and funding and
form the prerequisites for investment agreements.
knowledge and review it to create a clear image.
A professional pre-analysys is advisable. We approach this by means of reviewing of documentation, interviews,
software viewing and an assessment of the whole project. The latter is done on the basis of for example feasibility,
cost, in-house knowledge, product USPs, working processes, etc.
Through this process it will become obvious whether it is worthwhile to invest and if so, in which way. With the analysis
reporting you can make a sound decision and when moving forward they will add value, save time and funding and
form the prerequisites for investment agreements.
In an existing project
Investing in an existing project can have the following reasons :
- a project needs a funding round, which can seem very profitable, but before doing so you would like to have clear
and specified information about the project and clarify why, for which reason and how much funding is really needed. - one or more funding rounds have passed and you, in your role as investor, are not completely at ease, for example
due to broken agreements, lack of transparency, unforeseen software issues, time related and financial issues.
Unannounced project analyses are called for, with these it will become clear where the funding will be used, but also
where previous funding rounds have been allocated. This analysis will also provide clarity as to the current state of
the project, for example in terms of time, finances, methods, business aspects, solutions and whether or not it is wise
to invest.
where previous funding rounds have been allocated. This analysis will also provide clarity as to the current state of
the project, for example in terms of time, finances, methods, business aspects, solutions and whether or not it is wise
to invest.
NEW
N1. THE PRE-ANALYSIS
Commonly the problem for an investor is that on the one hand he is excited about the project, while one the other
hand wanting to remain prudent so he can get a solid understanding of the project.
In a business plan and in presentations, professional jargon is used, which makes it hard to fully grasp and put into
perspective. This also makes the combination of the funding and product unclear.
hand wanting to remain prudent so he can get a solid understanding of the project.
In a business plan and in presentations, professional jargon is used, which makes it hard to fully grasp and put into
perspective. This also makes the combination of the funding and product unclear.
To an investor, the following information is of equal importance : feasibility, product USPs, whether it can be realised
on budget, is the knowledge in-house, the time frame and what the risk is that more funding will be needed before
completion.
We analyse thoroughly with clear reporting, which will help you keep risks covered or hedged and provide clarity on
whether or not to invest. These in-depth reports will show you by approximation what funding will be needed, wether
the back up is solid, if the presented project can be completed as-is, whether it is technically realistic and at what possible real cost.
The analysis starts with studying on-hand documentation and interviews with participants and stakeholders. (All parties
will always be covered by strict mutual NDA's.)
The interviews are a necessary measure for clarity on the technical knowledge, the balance between project and
investment and pointing out possible bottlenecks. Obviously an assessment will be made of all assumptions and claims
with regards to software, which may have been made in the business plan, presentations and interviews.
on budget, is the knowledge in-house, the time frame and what the risk is that more funding will be needed before
completion.
We analyse thoroughly with clear reporting, which will help you keep risks covered or hedged and provide clarity on
whether or not to invest. These in-depth reports will show you by approximation what funding will be needed, wether
the back up is solid, if the presented project can be completed as-is, whether it is technically realistic and at what possible real cost.
The analysis starts with studying on-hand documentation and interviews with participants and stakeholders. (All parties
will always be covered by strict mutual NDA's.)
The interviews are a necessary measure for clarity on the technical knowledge, the balance between project and
investment and pointing out possible bottlenecks. Obviously an assessment will be made of all assumptions and claims
with regards to software, which may have been made in the business plan, presentations and interviews.
When proceeding with the project, we always advise a dedicated SRS in some form, agreed upon by both parties. This
will help avoid many problems and will provide a clear path for both parties in terms of agreements about for example
benchmarks, time frames, milestones and possible funding increments.
will help avoid many problems and will provide a clear path for both parties in terms of agreements about for example
benchmarks, time frames, milestones and possible funding increments.
N2. KEEPING CONTROL
To successfully invest is to keep checks on the investment. This demands professional guidance, as checking up on
milestones commonly is a technical matter, which can have financial consequences.
An additional plus is that in the event that agreements are not kept, or in case of delays or changes in the methods, the
investor can step in, provide advice and possibly correctional changes made.
Our reports with regards to the checks on the agreements will always provide a clear image on the current status and
progress of the project, so a tight grip can be maintained on the investment.
milestones commonly is a technical matter, which can have financial consequences.
An additional plus is that in the event that agreements are not kept, or in case of delays or changes in the methods, the
investor can step in, provide advice and possibly correctional changes made.
Our reports with regards to the checks on the agreements will always provide a clear image on the current status and
progress of the project, so a tight grip can be maintained on the investment.
This form of contracted guidance is usually the result of the investments based on our pre-analyses.
Consequently, the first step will be, in accordance with all involved parties, to make a dedicated SRS.
This will provide the check points to be followed in agreements and the methods to be used (technical v. financial).
Consequently, the first step will be, in accordance with all involved parties, to make a dedicated SRS.
This will provide the check points to be followed in agreements and the methods to be used (technical v. financial).
EXISTING
E1. THE NEW FUNDING ANALYSIS
As an investor you often times run into projects which at first glance appear to be interesting, for which previous
funding has been provided or a company in need of additional funding.
The first question at hand is what this additional funding is sought for, what it will be used for and in what will be the
best way of doing this?
Software development is a complex and technical business and demands professional knowledge and approach to provide a clarity with regards to the intents of the party seeking this funding. To make a sound decision, an effective analysis must be made wich provides an insight into all necessary information, tools, and knowledge before providing funding.
funding has been provided or a company in need of additional funding.
The first question at hand is what this additional funding is sought for, what it will be used for and in what will be the
best way of doing this?
Software development is a complex and technical business and demands professional knowledge and approach to provide a clarity with regards to the intents of the party seeking this funding. To make a sound decision, an effective analysis must be made wich provides an insight into all necessary information, tools, and knowledge before providing funding.
We start out with a thorough assessment of all documentation and claims and with interviews of the involved parties.
The report of this analysis will provide clarity with regards to : why is additional funding necessary, is it worth investing
in and how to invest (increments). This report will also contain solid advise on a future path, bottlenecks and how to
maintain grip for the duration of the possible investment.
The report of this analysis will provide clarity with regards to : why is additional funding necessary, is it worth investing
in and how to invest (increments). This report will also contain solid advise on a future path, bottlenecks and how to
maintain grip for the duration of the possible investment.
THE ADDITIONAL FUNDING ANALYSIS
In the event of an unexpected request for additional funding, the "why" is the most important question. This may be due
to developers wanting to make additional software, or because the previous funding turned out to be insufficient.
The latter will raise questions such as why was it insufficient, what was it spent on, will this be the last request for
funding and may this lead to extra return on investment?
to developers wanting to make additional software, or because the previous funding turned out to be insufficient.
The latter will raise questions such as why was it insufficient, what was it spent on, will this be the last request for
funding and may this lead to extra return on investment?
To find the answer to this question, in both scenarios, and make the right decision, it is of vital importance to analyse
properly. This will provide a clear image and advice with regards to the necessity of additional software, as well as
what the reason behind this extra request for funding is, how to respond and how to improve control over the
investment (regarding progress, stalling and possible return).
properly. This will provide a clear image and advice with regards to the necessity of additional software, as well as
what the reason behind this extra request for funding is, how to respond and how to improve control over the
investment (regarding progress, stalling and possible return).
E2. GUIDANCE
Keeping control of and on the investment is of vital importance. This demands professional guidance and management,
due to the technical nature of the milestones and their financial consequences.
due to the technical nature of the milestones and their financial consequences.
Thanks to our method of guidance and management, breach of agreements, delays and changes in methods can be
spotted immediately, which provides the opportunity to step in, advise and possibly correct the project.
Our reports will also contain solid advise on a future path, bottlenecks and how to maintain grip for the duration of the
possible investment.
spotted immediately, which provides the opportunity to step in, advise and possibly correct the project.
Our reports will also contain solid advise on a future path, bottlenecks and how to maintain grip for the duration of the
possible investment.