Early Stage Investment Criteria
We are constantly reviewing a flow of business ideas and propositions at various stages of maturity. Although the investment selection process is rigorous, we approach it in an open-minded manner and find that it is beneficial to the thought process of the entrepreneur or management team.
Blueray Capital seeks investment opportunities for early stage businesses that fit the following investment criteria:
- Innovative product, service, technology or process: not necessarily game changing, but bringing a new approach to solving a significant consumer need or problem
- Robust Business Model: showing clearly what is required to secure and retain customers, grow significant revenues in a profitable manner
- Scalable: capable of becoming a sizeable, international business with a clear development strategy to achieve that growth
- Sustainable competitive advantage: possessing unique characteristics or proprietary features that make it difficult for potential competitors to enter the market. In short, some form of “moat”.
- Intellectual property protection: an international application filed (or ideally granted) under the patent cooperation treaty
- Revenue generating, or close to it: we do not invest in ideas, or opportunities that are in the very early stages of development. We prefer to see customer sales or at the very least, commitments from potential customers. The more traction, the better.
- Additional funding: while some of our investee companies do require additional funding, our preference is that companies are able to reach break-even rapidly and “bootstrap” themselves thereafter.
- Exit potential: we recognise that businesses take time to establish themselves in the market and to achieve growth. We are more likely to invest in companies that have the expectation of an early exit.
- EIS approved (relates to UK investments only): while we do not make decisions based solely on tax issues, where possible we take advantage of the UK enterprise investment scheme (EIS). Further information on EIS is provided in the Links section.
Sectors of interest
Blueray Capital actively invests seed capital in Business Services, Cloud/Saas, EngTech, FinTech, Lifestyle and MedTech companies.
We provide valuable hands-on expertise, mentoring and guidance in the crucial early stages of the business. The quality of the management team is a determining factor for the success of the business. We will support the entrepreneur in putting together a high impact management team by drawing on our global network of contacts, recruitment firms and other relevant sources.
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