Scale Investing is different because we focus on just one phase—the scale-up phase.
The ScaleUp phase is generally seen to be the sharp growth phase that occurs as young companies come out of the StartUp phase and until they move into maturity. It typically last 3 – 5 years.
So… what’s so magical about that?
Significant research shows us that for many companies the uplift in value in the startup phase is often very small or zero, and once the company has matured (for example listed through an IPO), growth slows down.
What’s left is the middle bit: The ScaleUp phase. This is where the potential for the sharpest growth in value exists.
In order to find a significant number of great companies you need to look at a lot of companies that won’t succeed. Investing in these companies one at a time is hard work.
Last year our curation partner Catapult trawled through over 1,000 companies to find less than 25 that qualify. In 2020 the target is 2,000 companies. Unless you’re extremely well connected it’s very hard to find deal volume of this kind, and it’s a lot of work to sift through that many negative outcomes.
Scale Australia provides a curated portfolio approach to getting a solid exposure to the ScaleUp phase.
LOSERS NOT WINNERS
It’s appears to be true—there is no single, universal formula for success (we all wish there was!).
At Scale Australia Investing we instead focus on the 100+ clinically proven factors of failure. For every company we analyse whether those ‘fail factors’ can be overcome or mitigated, and if not, we pass on the opportunity. Guess what we’re left with? All the companies with the greatest chance of success.
There’s much more to the ‘formula of success’, which is available to Scale Investing members as a position paper. It’s free to join, and there are no formalities. Click the button below.
We look at the companies we invest in every month.
We get up-to-date trading figures from each as a continuous data–stream. And we share the same dashboard we look at with you. So you can look over our shoulder and see what is going on. #nofilter.