Application and Process
We look to invest in early-stage companies in the fields of SML (social, mobile & local), enterprise software, and cyber products. Our goal is to get you through the first phase, which usually means that you've built something impressive enough to raise money on a larger scale. It is a place for cutting-edge ideas and cutting-edge talent. To apply to Selarator, please read the following section, which explain the process and how to apply:
1) Submit your application along with the following documents:
- Application form (Download now)
- Executive summary
- Short presentation
- Founders' CVs
2) We conduct the initial review of your application.
3) We invite the most promising groups to meet in person and present to us their demo.
4) We conduct interviews and perform due diligence.
Selarator looks into not only the depth and quality of your team, but also how diversified it is. Teams need to have various skill sets. There needs to be a clear business focus, but also a very deep understanding of the industry the company works in.
We consider several factors in this step:
- How you protect your IP
- What kind of role the technology plays in the equation (e.g., how much you're requiring consumer behavior to change)
- If there is any technology risk involved (any unsolved areas of the technology that are needed for the solution to work at large)
The demand for the company's services needs to be supported by a large market.
The growth and/or internal dynamics of the market, the level of competition, access to the market, distribution mechanics, and the state of the market are all critical factors.
How well are you able to make money from your venture? We look at two things when it comes to business models: their scalability and how well you can protect and differentiate them.
Scalability means that you are able to create more revenue without increasing the costs in the same proportion.
Differentiation and protection mean that you are able to build in advantages and different kinds of customer lock-ins to keep your business ahead of the competition.
There are four points we look at: the use of the funds, financing terms, financial risk, and the potential of a 10x return on investment.
The use of funds is important because we want to see how you'll be using the funds to grow your business.
Financing terms are important and vary from investor to investor. These will be covered in more detail in the term sheet and are seldom one of the key points in the negotiations.
Financial risk means what kinds of risks are involved with the current investment.