Finding the X-Factor
Discovering the thing that turns a good idea into an “I want it now!” innovation is the heartbeat of everyone on our team. We zero-in on products and companies with the X-Factor and bring them to our investment team immediately so progress can be made before others beat us to the market.
After seeing myriads of innovations in many vertical markets we’ve found that most early stage products that glimmer with X-Factor gold usually lose their luster after a lot of due-diligence is conducted. Occasionally though, our work confirms the X-Factor premise, making it even more viable than we thought.
So, do you have the X?
Though hard to define exactly, the X-Factor is generally the unique core offering of your product or company that can generate great financial wealth in the marketplace. To get there, most products need to have some sales or qualified market intelligence so potential partners can mitigate risk when moving the product forward.
With it, investors clamor to participate immediately. Without it, projects linger and usually do not find funding.
Common X Factors
It has never been done before
Truly innovative ideas are hard to come by. Many inventions are an improvement on previous concepts. Investors get excited when they see products that break new ground.
It can’t be reproduced easily
It can’t be copied easily with common products already on the market or by competitors that simply tweak their designs.
It can be sold in high volume with great margins and have repeat sales
The ultimate X to an investor is great profit and a lot of it!
It can be protected
Patents can be realized that clearly do not infringe on other patents. New patents can be developed that compliment the innovation as it meets market demands.
It can be sold to a larger company
Exiting an investment is a great strategy when the stakes are high.
Chances of funding products with the X-Factor
The graphic below depicts a common product progression. Typically, the further your product is developed the greater chance we have of finding financial partners.
Savvy investors are usually cautious of investing in early stage products that have no sales or market presence. However, innovations can still find investment dollars to push a concept forward if investors believe it has a very high X-Factor.
Where is your product on the scale? How great is its X-Factor? Contact us and we’ll help you figure it out.