Methodology

As a part of the vibrant early stage entrepreneurial market, YourNest receives an average of 75 new proposals every month – across industries and domains. They are a mix of product and process ideas, complex and simple constructs, audacious visions and opportunistic responses to market needs. The brains behind them are brimming with energy and optimism.

Each start-up idea, which reaches us, is studied thoroughly and rigorously. Meetings and calls are scheduled with the ones that have –

  • Potential: Idea serves a significantly large addressable market.
  • Proof of Concept: Crossed the incubation stage where the product/service concept has been proven.
  • Customer Validation: Customers’ confirmation of the idea’s usefulness.
  • Clear Roadmap: Ready with a Go-To-Market plan.
  • Leadership: Entrepreneur demonstrates integrity, passion, courage, resilience and focus.
  • Team: Complementary, balanced talent pool – a visionary, an execution champ, and a domain expert.

The start-up idea and the team, which interests us, is run through our evaluation matrix, comprising 73 parameters. At this stage we deploy a multi–tiered evaluation model. We consult our panel of mentors and the experts among our investors. Start-up proposals are referred to the investment committee based on our intuition and our ability to add value to the venture.

These parameters include –

  • Value Proposition of the Offering: Differentiators, entry barriers and sustenance.
  • Readiness for Go-To-Market: Existing customers and their feedback, sources of revenue, execution strategy.
  • Management Depth: Clarity of command, level of commitment (no hedging of bets).
  • Business Model: Financial viability, funding requirement.
  • Exit Prospect: Time and options for exit, expected exit valuation.
  • Risks: PESTLE (Political, Economic, Sociological, Technological, Legal and Environmental)
  • Valuation: Pre-money valuation, comfort with investor protection rights.