Our Tips for Entrepreneurs : Kaedan Capital Ltd.

Among our Portfolio

We were looking for seed investors to finance our activity, and found strategic partners that bring in a lot more than capital. Kaedan's sharp insights, vast aggregate experience and global network of internet and media contacts have had a significant contribution to our marketing and biz dev efforts. Being relatively young entrepreneurs, we hoped for partners that understand the industry and move in our pace on the one hand, but have the experience and discretion we needed on the other. Fortunately, the Kaedan team gives us a unique balance between these two elements. Their mode of action leaves the founders with the ability to effectively run the company, while Kaedan provides the guidance, advice and financial backing entrepreneurs need in order to turn an opportunity to success.

Ofer Shayo

Founder & CEO, Tvinci Ltd.

When pitching us or other potential investors we recommend to discuss the following points in a concise manner:

People? It's all about the people.

In an early stage deal, your team is the most important factor as everything else will change and a great adjusting team with the right skills set will make it happen.

On top of a mere background description, figure out what’s most important to reach success and make sure to tell us how each person will help in reaching that success.

What is your core business? Do you have a clear business model?

Very simply explain what is the problem or need that your product/solution solves or addresses. How do you create real value for your target customers?

Focus on the essence of what you are offering. Also, describe how you are planning to generate revenues from your product / service. Is it through a licensing model, OEM partnerships, affiliates, advertising, direct sales to end consumers etc.

What is your long term sustainable competitive advantage?

State exactly what is your unique selling proposition vs. existing and future competition – do you have a unique technology that is patent protected?

Is it a new and smarter business model you discovered? Do you have a winning team that can execute better and faster than the rest of the herd? Is it a consumer insight that no one has yet addressed? Are you relying on 1st mover advantage that will create a defending network effect?

What is your total addressable market?

It is of most importance that you accurately define your target customers and provide a relevant market size to serve these customers.

Please avoid general mass market statistics. For instance, if you are aiming at the online advertising business, be specific about the sub segment that you are aiming with your solution (search, classified, display, video etc).

What is your go-to-market strategy?

Explain how you are planning to reach your customers efficiently, with the ultimate goal of creating a positive ROI in mind.

What is your cost of acquisition of a customer vs. the expected lifetime value of that customer. Elaborate on how you build a high adoption level to your products and provide high utility and simple solutions to better address your customer needs will be a key driver to success.

Who are your competitors and why are you better?

Elaborate on the direct competitors and how do you differentiate from their offerings.

Do not just provide comparative table of features but rather provide a deeper value oriented assessment of your differentiation with your target customers in mind.

What are your proposed investment terms?

Try to evaluate how much capital you think will be required in order to get to positive cash flow, and what is the minimum amount that is essential at least for the first 12-18 months of operations following the closing of a financing deal.

We recommend to raise a round that is sufficient to support at least 12-18 months of operations. A clear use of funds plan is also required.

What is your exit strategy?

We want to understand that your product or service has a real big potential on its own or that it could be a significant platform possibly for others.

What is your end game dream? Do you plan to build a self sustainable profitable business or be acquired by a big established player? If the latter, identify such big players in your addressable target market.