Investment Criteria
Blue Chilli's Venture Technology investment branch is committed to investing in Australian online start-ups and will deliver at least six new businesses in 2011. As investment opportunities are limited, Blue Chilli has strict investment criteria that are used to evaluate all potential partnerships. These criteria are built from experience in business investments and are in place to maximise our ROI and reduce our risk (exposure).
1. The business must have love
The most important aspect of any venture is not the idea, it's not the finance - it's the person driving it. The common trait in technology investments that succeed and the element that is almost always missing from ones that don't - is the driven entrepreneur that lives and breathes the business. Therefore Blue Chilli will only invest in a business that has a leader who is passionate about the idea and who is committed to making it work.
2. The idea must be unique (or be a unique twist of an existing idea)
The business must have a unique selling proposition. Blue Chilli preferences novel ideas and start-ups that push the envelope rather than those that simply copy a competitor.
3. The business must have "the three customers"
Blue Chilli Technology invests for the long term however part of our successful strategy is to identify investment opportunities that can return a large sum in a relatively short period of time. The key to success here is to have "the three customers":
- The individual entity who purchases one product or service, this is the 'core' focus of any business
- The body or group who can be given an incentive to sell 1,000's of products on your behalf to their network, clients or staff
- The company who will acquire the business in the future
4. The idea should have an instant monetizeation model
Whilst not mandatory, Blue Chilli prefers business models which have an instant monetization component - that is businesses that can start earning money the day it is launched. Blue Chilli does invest in alternate busines models however there must be a significant and demonstratable advantage. Idealy Blue Chilli will look to return at least $100,000 in revenue within the first year of the online business being operational.
5. The business must be online based
Perhaps obvious however Blue Chilli Technology only invests in online based start-ups as this is where our skills are :)
If you have an idea that meets these criteria then please get in touch with your nearest Blue Chilli office.
