At Vesuvio Ventures we consider the following key criteria for funding our portfolio companies:
Industries and markets where we can contribute the highest level of expertise and value. Our target investment areas are the following: Digital media, SAAS, Lead generation, B2B online media, online education, Enterprise software and business applications.
Strong Management team
Ventures with a committed management team. Ideally 2-4 people involved with complimentary skills. We like frugality and we look for ventures with a frugal management team who are not willing to become employees but entrepreneurs ready for building a profitable company that generates future dividends.
Ventures where the CEO and the members of the management team have a proper proportion of the ownership to make it worthwhile to invest their time and effort into their project.
We are looking for Entrepreneurs that know how to use advisors.
Low capital requirements
Ventures that can be launched with little external capital -less than $250,000- and have profit margins to sustain high growth with internally generated funds.
We look for ventures with little needs of hard assets, such as custom buildings, manufacturing equipment, etc.
Ventures that generate revenues from US and/or Europe while having competitive operating costs in Latin America. We can help and leverage opportunities from European or US companies rolling out into Latin America and vice versa Latin American companies looking to go global.
Timing (Not too early, Not too late)
Ventures whose product or service can make an impact on the market today. We do not invest in pure-science inventions where real-world applications are years away, nor are we interested in entering mature markets that are already crowded with competitors.
Rapid Revenue generation and Break-even point
Ventures with Products/Services that are far along in the development cycle (i.e. ready for sale), with the ability to create perceived or real revenue within 3 months and with the ability to achieve the breakeven point within 6 months.
Clear Revenue and Financial Model
Entrepreneurs should know how they are going to make money, which are the customer acquisition cost, customer life time value, cost of sales, margins, operating expenses, taxes, etc.
Concise and convincing differentiation
Ventures that can answer a simple question: Why customers will buy our product or service?
Ventures with a compelling business model and a scalable concept: at least $10m in year 5.