In truth, eCommerce global success requires capital.
We refer to it as ‘performance capital’.
Performance capital is the intelligent use of this capital to accelerate digital growth (revenue) at either or all of the points displayed on the graph below. It is aligned to digital strategies and spend efficiencies across layered performance channels and real time data (or close to real time data).
Performance capital is an accelerator, so that when injected at the optimal time on the growth path above (points 1-4), a business’ revenue can vault.
With digital global statistics like this…
And with the projected eCommerce sales to double by 2021 to approximately USD$4.5 billion globally, it’s becoming more important for CEO’s to have access to resources to accelerate their growth path (similarly from point 1 to 4, in parallel with the pace of the environment around them.
It is this set of unique circumstances, that combined, makes the ‘perfect storm’ for CEO’s to accelerate their digital revenue. And, in which led Digi_Vest developed our performance capital model.
Our objective is to minimise the price for CEO’s, fuel CEO’s eCommerce to scale significantly and ultimately be remunerated on this performance.
Once on the growth path, the key is for the CEO to not give up too much, or take too little capital.
The performance capital considerations are around data driven insights, performance channels, timing of spend, level of spend, expected returns and ROI. It’s the critical ingredient – it can be an early, mid-term or final ingredient.
Digi_Vest is a non traditional digital investment company. We are an accelerator, not an incubator.
Our performance capital options include:
Digi_Vest makes you the ‘money’
In this scenario our ‘bolt on’ eCommerce team is deployed to accelerate digital sales. It complements existing digital marketing capabilities. Often an increase in sales renders additional CEO cost considerations e.g., stock, warehousing, new hires. In this instance, Digi_Vest can partner with you in non-direct or partial cash options (ie. media claw-back, human capital, expertise etc.) whilst you may reinvest the surplus revenue earned from our combined efforts to cover these additional cost considerations to drive additional growth. Ultimately it’s your company, the choice is yours.
Digi_Vest ‘invests the money’
This may take shape in the form of a loan, equity options (which are only exercisable upon an event, ie. stock market listing, private sale, change in majority ownership, major capital injection) or equity options exercisable at our discretion. Our investment and partnership philosophy is long term. It often takes time to build a significant global eCommerce business. In some instances we may not fully invest in a company as this (option 1 above) serves the CEO best.
Digi_Vest ‘unlocks the money’
CEO’s are provided with access to a Digi_Vest performance capital executive upon agreed inflection points along the growth path. We then define capital use, spend requirements and facilitate investors. The ideal circumstance is committed investors are in play early and performance capital is released upon agreed terms. Other times it may be a new capital raise. In effect Digi_Vest brokers the introduction of investors.
If you are interested in a performance capital accelerator discussion….we encourage you to connect with our Chief Investment Officer.CONTACT US
How is performance capital utilised?
- Foreign market eCommerce exploration
- Organic social community management
- New media channels such as Rakuten, WeChat, facebook, YouTube, Amazon etc.
- Technologies like web analytics, marketing automation, data science solutions
- Digital ambassadorial equity investment costs
- Digital partnership costs for database build
- Automated email marketing series
- Digital assets development
- Path to conversion and attribution modeling
- Content development and syndication
- Foreign market online synchronization
What is the opportunity cost of business as usual?
- The ever-evolving digital landscape
- Utilising data in digital marketing to drive efficient results
- The importance of data capture for smarter spend decisions
- Understanding the digital consumers decision making process
- The power of aggregation: multi market online management
- The ease of when it works to ramp spend/sales with no/low risk
- The halo marketing affect of media aggregation
- Local competitors winning majority market share, first
- Existing competitors ‘forfeiting local battle, winning the global online war’
- Losing existing customers to inferior competitors who are eCommerce savvy
- Paying retainers to agencies without ‘pay for performance’ conversion measures
- Securing capital from traditional investment firms with limited eCommerce advice
- Poor multi-performance channel use expertise by region