TRUST. Analysis and Assessment of Projects

Investments in Startups offer great potential, but also involve high risk. Therefore, we must try to start from projects that, although they have uncertainty, have solid foundations and are prepared to develop the activity. The Scoring and Fellow Funders rating serves to place investments in context in order to parameterize and value as objectively as possible.

All projects found on Fellow Funders have passed a rigorous analysis that consists of three phases:

  1. Quality Deal Flow
  2. Assessment of the project’s viability and its risk (scoring)
  3. Study of the investment proposal (Assessment)

1. Quality Deal Flow

The first phase is to keep all necessary channels open to obtain a quality DEALFLOW. On many occasions projects come directly to us, but the lack of information on the different sources of financing available drives us to be present in many associations, foundations, business schools, etc., always with a clear objective: to offer our investors quality and investible projects.


2. Fellow Funders’ Scoring

To address the second phase, the team of assessment and management experts analyse the project based on 10 pillars which assign the SCORING Fellow Funders only publishes projects that obtain more than 65 points (out of 100).

The 10 pillars we study and assess are:

1
Investible

The project has to be susceptible to investment; it is not “anything goes”.

2
Team

A balanced team and committed to the project, with the appropriate abilities to manage it.

3
Reputable

The entrepreneurial team must be above any suspicion or evidence of fraud and must have always acted honourably in their professional conduct or it is discarded immediately.

4
Market

The growth data must be consistent with the project’s potential market and its implementation must be planned for the right time.

5
USP (Unique Selling Point)

The project should be different from the rest, or what is on the market.

6
Competition

Who says there is no market without competition? The important thing is to know the competition well, and that is not dominant.

7
Business model

Scalable, profitable, and with limited financing needs.

8
Traction

VHow can expenses and revenues progress and why.

9
Projections

How can expenses and revenues progress and why.

10
Exit

Every investor wants to know what the divestment process will look like. All projects have a standard partners agreements.

With these 10 pillars, we have an initial screening that helps us understand how prepared or ready the project/company is. This is FELLOW FUNDERS’ SCORING


3. Fellow Funders’ Valuation

In addition to the entire previous process, if the project scores more than 65 points, we carry out the third phase with the objective of defining:

  • How much the company is worth
  • Why it has that value
  • What percentage of the company the entrepreneurs hold
  • Why it needs the money and if it is enough
  • What the exit be.

If any of the projects in this phase do not meet the principle of fairness, or the valuation is not appropriate, or the need for money is not justified or we believe that it is not sufficient to reach the next stage, as well as if the EXIT is not viable or reasonable, the project will not be published on the Fellow Funders platform.

Fellow Funders cares about developing a new value business fabric in which investors and entrepreneurs work together towards the future. To achieve this, we must all play from the same deck and therefore, we require all projects to meet some investment standards to be published. If it is not good for the investor it is not good for Fellow Funders.