How we select startups
Before you can invest in a startup, each startup must undergo the following steps:
Pre-Screen
Due Diligence
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Decide
Phase 1: Pre-Screening
We get to know the founders and make an initial assessment of the startup based on the following factors:
Team
In early stage startup investing team is everything. We look for experience, business acumen, leadership, the ability to embrace change, and a clear vision for the future. We also consider factors such as the team's ability to adapt, communication skills, emotional intelligence, diversity, and their ability to execute and attract top talent.
Market
A startup will only succeed if it scales. A large and expanding market can provide the necessary opportunities for a startup to scale and become a successful, larger company. We look for startups with an adressable market of at least CHF 100 million.
Product
The success of a startup depends on the product. Is there a clear demand for the product? Is it solving a real problem or need in the market? How many people are already using the product? How have the key metrics developed over time? Does the product stand out from its competitors? What unique value does it offer?
Phase 2: Due Diligence
If the startup has successfully completed the Pre-Screening we conduct a Due Diligence and examine the following:
Business model
We evaluate the startup's business model, including how they intend to make money and their potential profitability.
Technology
We evaluate the technology used by the startup to solve problems, including its uniqueness and potential for replication.
Terms
We assess the valuation cap and other terms of the startup's offering to ensure they are appropriate for the startup's stage and traction.
Fact checking
We verify whether the key facts presented in the pitch are true.
Competition
What does the competitive landscape look like? Are there already established companies doing the same?
Phase 3: Decision
After conducting a thorough review of the company, we will determine if it is a suitable candidate for raising funds on Arcton.
If we decide to move forward, we will prepare the necessary documentation and launch the campaign on the platform. We will also provide ongoing support and information to investors throughout the fundraising process.
Why have a lead investor?
Startups will only be listed on Arcton if they present us a lead investor. Having an experienced lead investor sends a strong signal. about the quality of a startup. Lead investors typically have profound knowledge about the startup, the industry, the market, and a network which helps the startup to succeed.
