Kanshuu

Intro

Most early stage companies in Hong Kong are run by first-time founders.

Investing in these first-time founders is risky and failure rates for early stage investments in Hong Kong are higher than more mature markets like Silicon Valley which means more due diligence is required.

However, with so many deals to analyse it can be hard to spend enough time with each investment target.

At Kanshuu we are serial entrepreneurs ourselves. We utilise our broad experience set to identify the key success factors in your investment targets, whether technological or otherwise, as well as the most common reasons for early stage company failure:

- Founder’s execution risk
- Lack of market problem validation
- Lack of product/market fit

Services

Core Package

The core package consists of a series of intensive workshops with the target company to focus on the problem they are aiming to solve and see if their proposed solutions matches the problem statement. This process is designed to add value to the target company while covering core DD items.

Outcome

Deal Structure Recommendation
Investment Schedule Recommendation based on
Problem Validation: RAT Analysis (Riskiest Assumption Tests) - Solution Validation: Key Metrics
Deal Structure Recommendation
Company Report including the following key points:
- Key Problem Statement: What problem is the target company tackling
- Success Factors: What the target company needs to focus on to succeed
- Team Analysis: What mentality & skillset do the founders have/lack

Optional Add-ons

Financial

3rd party look at the accounts and forecasts to identify risks and protect against fraud.

Financial due diligence
Financial modeling & assumption validation
Cap-table review

Strategy

How the target company will fare in the context of its industry. What the size of the opportunity is.

Industry market macro analysis
Competitive analysis
Micro analysis of the target company (SWOT)

Technical

How technology will impact/hinder growth.

Technical debt risk review
Analysis of the development/testing processes
Analysis of platforms/technologies/tools choices