The model - Explained
A brief overview of our approach. We continually test, refine and validate our model.
OUR MISSION
Every business has some degree of inherent risk.
An investors job is to take on risk. So, naturally, they want to know what they are getting into when they invest in an early-stage companies. Investors are trying to mitigate risk while producing big returns. Equipped with knowledge and experience, data, algorithms, and custom-made tools, investors are able to determine this level of risk.
But entrepreneurs don’t have visibility of this or have understanding of investor’s deal selection process, its risk/reward equation and its success criteria. The odds are not in your favour. We want to change that.
THE SOLuTION
Diagnostic tool
Our tool evaluates startups through our quantitative 7-factor model to assess the credibility and perceived execution risk of the startup.
Each factor includes a set of competency drivers which outline the key readiness indicators (or success components) involved in achieving the highest score for each factor. Together, there are over 100 distinct competency drivers/characteristics.
THE MODEL
The 7 factors
The CredEx Model outlines key indicators and activities that comprise a star business, which has been broken down into 7 factors.
Once evaluated, each start-up is provided with its specific CredEx Score – an evaluation of the business itself across those factors. A high score indicates that the start-up is a low-risk investment opportunity with a strong potential for growth and profitability.
THE PRODUCT
Scoring
All competency drivers are scored on a scale of 1-5 or low to high risk.
Once completed, a score is provided for each factor as well as an overall score for the start-up. Overall scoring is out of 100.
With a comprehensive assessment report of the level of risk involved for each factor, entrepreneurs can validate their proposition, reduce risks and identify areas of improvement.
OUR TEAM
James Bosman
Lisa Hernandez
