At the core of our business are the dynamic minds behind the companies that we invest in; entrepreneurs with the proven ability to execute. As any investor worth their salt knows, the success of an opportunity is dependant on far more than just a great idea. This is why we spend a great deal of time getting to know founders before any potential investment is made. Although every opportunity is different, their are a number of criteria that we look for in entrepreneurs:

  1. Pre-investment Traction  - We don’t just invest in people that make things happen, we invest in people that have already made things happen. An idea on paper might claim that it can disrupt an entire industry, but unless the founder has demonstrated this through an MVP, interactions with potential users, or early revenue, we have little reason to believe it or part with our money.  

  2. Track Record - A great deal of our most successful companies are led by industry veterans who have had previous successes. They know how to build great businesses because they have already been through the process before. For younger founders, they might not have necessarily grown and exited their own business before, but they have demonstrated their ability to execute by leading projects within larger companies or in organisations outside of the workplace.  

  3. Sector Experience - We like to back people that know their sector better than anyone else. This could either be through them having them worked in the industry previously, or through them having a specialist understanding of a technical area due to advanced study.
  4. Passion - Building a business from scratch is hard. There will be highs and there will be lows, often within the same week. That is why genuine passion is so important. Unless the founder cares enough about the success of the company to be able to shoulder the hard times, the journey to success may prove too difficult.

  5. Empathy & Self Awareness - Our business is a people business. We spend more time communicating with our founders than working on spreadsheets. As a result we look for people that we can get on with, who understand the importance of good relationships and the power of networks, and who get just how integral this all is to building a good business.

Next Steps?

If you think you possess all of the above and wish to discuss your business with us further, please don’t hesitate to get in touch by emailing Alex Hoppenbrouwers at alexh@merciafund.co.uk 

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