BlueChilli’s mandate is to invest in non-technical entrepreneurs who have a deep market and business understanding. We have a process which identifies key characteristics commonly found in successful entrepreneurs and use this to filter over 200 ideas pitched to us every month.
Our investment strategy is to mitigate risk through deep engagement in each business, via the supply of development services, founder training through The 156 accelerator program, and mentoring and support through the BlueChilli incubator.
We then provide each startup with a product team through our integrated digital agency that provides services leveraging the ChilliSource framework. The median cost to build a startup is under $75,000. BlueChilli requires the startups to raise seed capital which funds the development through the integrated product team.
What makes an ideal candidate?
- 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 startups that don’t – is the driven entrepreneur that lives and breathes the business. Therefore BlueChilli will only invest in a business with a leader who is passionate about the customer, the problem being solved, and the solution to be developed.
- The idea must be unique (or be a unique twist of an existing idea)
The business must have a unique selling proposition. BlueChilli preferences novel ideas and start-ups that push the envelope rather than those that simply copy a competitor.
- The business must have “the three customers”
BlueChilli 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
- The idea should have an instant monetizeation model
While not mandatory, BlueChilli prefers business models which have an instant monetization component – that is businesses that can start earning money the day they launch. BlueChilli does invest in alternate busines models, however there must be a significant and demonstrable advantage. Ideally BlueChilli will look to return at least $100,000 in revenue within the first year of the online business being operational.
- The business must be online
Perhaps obvious, however BlueChilli only invests in online startups as this is where our skills and experience lie.
In an average month, BlueChilli receives 200 online applications from startup entrepreneurs with all kinds of ideas and all sorts of backgrounds. We meet with 20 of those entrepreneurs, and seek to onboard two each month to achieve our goal of creating 100 new tech startup businesses by 2016.
A four person Selection Committee meets weekly to review our current applications, select entrepreneurs to engage with, and finalise applications.