It’s harder than ever for Incubators/Accelerators to get their portfolio companies funded. Investors are more demanding and want to see the numbers behind the story. Revenue projections, customer acquisition costs, lifetime value projections, how they interact with each other, and the assumptions behind the projections. Portfolio companies fail miserably in understanding, presenting, and backing up such numbers for investors.
The Problem – Getting Funded
Typically less than 20% of portfolio companies are getting funded or receive follow on investments. One of the major reason – they are not getting funded – is because they do not understand the metrics that matter – and do not know how to model their business and present it to investors.
Excel – the business modeling tool of choice – produces models that are either too simplified or overly complicated… and always error-prone. Investors have no patience for incompetence.
The Solutions – Giving Investors What They Want
Lean-Case gives Incubators, Accelerators, and their portfolio companies the ability to quickly model and simulate different business models – accurately – and present the metrics in an investor-friendly format. This will dramatically increase the close rate on getting portfolio companies funded.
After hearing how Lean-Case covers more than 10 different business and forecasting models, I invited Eckhard Ortwein, Entrepreneur, business model expert and founder of Lean CASE onto my daily tech podcast to find out more.
As the CEO and founder of Lean-Case, Eckhard is a Serial Entrepreneur co-founding cyber-security startup accells acquired by Ping Identity and m-payment startup paybox acquired by Sybase/SAP. As a Business Angel, VC Partner and Investment Advisor, he has realized that turning business models into numbers is a major challenge and must professionalize.
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