Traditional investments include buying a house, car, investment property bank deposits, investment funds, bonds, equities (stock), annuities and general savings.
Digi_Vest is leading the charge in something a little different.
It’s called eCommerce led investing.
Essentially we have developed criteria (proprietary) for assessing a business’s ability to scale successfully online (globally). This affects a business’s valuation, revenue, ability to scale, profit, ROI etc – all critical aspects a savvy investor analyses pre-investing.
There are 4 inflection points (as per the graph) that investors can select from based on their risk profile when it’s of interest to invest with businesses. Our role is to introduce opportunities by ‘point 1’ or ideally before. The earlier Investors enter on the upward swing suggests higher returns.
Some of the companies we partner with are public. The majority though are unknown, private, with unique product offerings domestically and requiring assistance to vault globally.
eCommerce margins are usually larger than retail and the nature of the digital environment being a global sphere allows scale to be quicker, simpler and cheaper – but the complexities and risk of eCommerce are all too foreign for many CEO’s to do it effectively.
The traditional investor approach of indirect company investment for equity, remains. However, investors are not referred opportunities until companies have passed our eCommerce incubation period. Investors only invest in what works.
We call this incubation period our “pilot validation” phase. Pilot validation fundamentally tests online sales conversion and ROI ratio levels. Traditional investment firms don’t affect an eCommerce pilot validation period.
Getting it right is testament to sound eCommerce foundations and identification of CEO’s custom growth formula . In reality, it is quite complex and underpinned by a structured approach and data science.
Pilot failure can occur for various reasons, ie. unable to achieve a positive effect on the eCommerce conversion rate (short term), unable to achieve a reasonable value over a 1:1 ROI throughout the pilot validation period etc.
Digi_Vest accepts pilot validation failure – not the investor.
The Investor doesn’t participate in a pilot period at all. Our aim is to move businesses from pilot to scale, and in doing so, support more investors in fueling (investing) in scale.
Worth noting that our proprietary investment criteria (F6) measures over 300 data points across 6 key eCommerce success foundations. Pilots apply to all company sizes. Investors have the luxury of investing in a business that has momentum as well as access to that business’s F6 and pilot validation results.
To date, we have a portfolio of companies with a turnover of $500million, to under $1million, a number in scale mode, of which Investors may be interested in exploring directly.
Traditional investment companies do not invest personally (do whatever it takes) ie. ‘roll their sleeves up’ and deploy end to end eCommerce experts responsible for significant scale.
eCommerce led investments benefit the investor, in terms of valuation, dividends, strategies and advancements in other areas of the company that do not occur online.
Investment opportunities are private.
Investment opportunities are exclusive.
Digi_Vest operate three divisions:
– eCommerce Investments (selection)
– eCommerce Growth (pilot & scale)
– eCommerce Performance Capital (investments)eCommerce Growth (2) is our ‘pay for performance’ division. Its job is to move investments from pilot validation into scale mode. Investors enter post Digi_Vest accepting the start point risk.
eCommerce deliverables, timelines and financial targets for each pilot are agreed with the partner CEO. Investors are not involved at this stage. By the time an investor enters the business has momentum.
Pilot validation matter less for investors some say. Pilot success may be early, say month 3 (wow), sometimes it’s month 6 (tracking), sometimes 9 months (hard earned, unforeseen events). Sometimes pilots simply fail to meet shared expectations. The investor doesn’t ‘sweat it’.
Investors often sign in advance of pilot validation conclusion for more beneficial terms. If the pilot then goes on to fail the investor invests zero and there is no financial transfer. The only time a transfer occurs is if partner CEO and Digi_Vest agree on Pilot completion. Over the course of the pilot validation period, investors can kick back and let matters unfold. It can be fun.
Investors can invest in their passion, that may be local CEOs, ethical products, a particular vertical. eCommerce investment opportunities are growing everyday. If this is important to you, reach out to Digi_Vest as if your selection isn’t already a part of our portfolio our analyst team may have it coming through our qualification process.
There is no investment ceiling. There is a minimum of USD$100,000 capability. Investment requirements are ultimately set by our partner CEO’s. Once qualified we send all opportunities (term sheets) to investors. In addition to our eCommerce Growth Strategy and results to date.
Potential Investors may include: individuals known to the company, individuals unknown to the company, high net worth individuals, angel investors, venture capitalists, private equity, fund managers, Government.
Investors generally will be introduced to partner CEOs (companies) in the early days of global eCommerce scale. Notwithstanding some companies may have had historical offline global or domestic success.
Ultimately our CEO partners with manages investor decisions. Every investor who is keen to support their interest shall be referred.
Our role is to facilitate introductions, manage investor first contact, provide confidentiality and terms sheets, advise of next steps if any, provide relevant background.
We overview size of market online per company, results to date, eCommerce trajectory current, while of business trajectory comparative, multiplier with new markets. We share our rationale regarding deliverables, investment and experience to date with the management team. If there is a mismatch, ultimately we view venture capital firms as complementary, that is, more capital to fuel global success. Ultimately you will make your decision based on the company, CEO, investment metrics and criteria, our eCommerce efforts are just one piece of the puzzle.
We closely vet eCommerce trajectory and track record pre-recommendation. Long term repeatable returns are top of mind. Interestingly, there are any number of +100million USD turnover companies, eCommerce deficient, consistently providing adequate returns, that can vault with Digi_Vest advantages. In many instances exit plans, contingency plans and company strategy are well advanced with the CEO and Board, and eCommerce can extend the multiple, what is missing is the private equity impact to review the company and progress.
By nature we are risk averse. The data tells the story and our goal is to acquire a scalable trajectory for further investment – for the company, for us, for external investors. The beauty of eCommerce led investing (we don’t invest in companies unless ecommerce can or has vaulted) though, when it works, it can really work. So we take the time to introduce our eCommerce investment management style to Fund Managers. We are open to developing a unique fund in partnership as your technical team, or simply partnering to a secure number of direct ‘eCommerce led’ company investments. All our investments are top down, all vetted in through pilot validation. Naturally there are different scaling positions dependent on risk profile. In effect we provide the technical analysis pre your commitment.
Opportunity to contribute to local flagship companies success via eCommerce scale. Or companies that support in country interests. The beauty of eCommerce is that it can take ‘good’ local companies and make them great globally. Rather than trying to help every company with potential but without strong ecommerce foundations.
Industry Funds or Specialist Bodies
Support great local businesses stand out on the global stage. Which in turn may fuel job creation, individual’s wealth and industry pride. For many industries even ten years ago, the only real way to move products was via ship or plane. Today smart business practices and technologies allow great products to be shared with the world more directly.