Investor Related Services
Without optimum traction, Investors are unlikely to feel confident about where the Investee may be headed. Traction minimises Investors’ risks. Investors want to grab every opportunity to know how their portfolio companies are performing and what they can achieve in the medium to long run.
Is my money safe? Is it being put to the right use? Are they sticking to the plan and achieving their goals? Are they hiring the right talent? Are there any risks or challenges coming up in the business that I must know of? What’s my ROI? What do the latest financials look like? What’s the latest valuation of my portfolio? Will it ultimately turn out to be a good investment? And so on, so forth. Investors need to fetch answers for all these questions. And that requires traction with the Promoters and their key personnel.
Coincidentally, the 2 worlds on the either side of a Funding Round have invariably been disjointed. Standing on one side, the promoter projects the other side to a potential investor as “The Treasure Trove” waiting to receive its rightful owner. Replete with promises of a surreal future, the promoter’s pitch is invariably over the top. However, the astute investor sees through the stunt well enough to measure the true potential of the business.
In the post funding world, the investor’s experience is rather coarse. The picture projected in the erstwhile world does not truly hold up. The grass looks not as green as it was made out to be. Most promises get broken. Money spends become divergent from the stated end-use. Simple information gets difficult to come by. Data that is received seems dubious & fragmented. Self-doubt begins to creep in. “Did I make an error of judgement” rings through the mind persistently.
That’s where Outgrow plays a significant role for the investors. Outgrow acts as the investors’ extended team to protect & safeguard their interest by:
- Being an Extended Team for the Investor, working in their interest with the Promoter’s team
- Undertaking Portfolio Analysis by gathering data on the leading indicators (Financial & Operational) and presenting it to the Investor through detailed Portfolio Reports.
- Reporting on the Challenges & Risks being faced in the business
- Conducting the Valuations Exercise on a regular basis
- Reviewing the Corporate Governance Framework and making suggestions for improvement
- Reviewing the Internal Controls, reporting on their strengths & weaknesses, and suggesting necessary changes
- Gathering Ground Intelligence by developing a relationship of trust
- Checking upon the actual end-use of the Investor’s Money
- Measuring & reporting the actual performance of the business (both financial & operational)
- Sharing periodic updates containing critical information about the new or recent events
- Analysing data to identify the emerging trends & patterns
- Implanting the right internal controls to prevent any events of financial crimes, frauds, or assets misappropriation