Investors Finally are Embracing Technology Twenty Years After Online Dating Proved it Works
Investment conferences, business pitching events, business financing workshops and wealth strategy presentations are but a few of the resources available to investors and companies who hope to make more money together.
Events of quality share unique nuggets of wisdom, tales of success and failure, and provide additional perspectives on the complex art of investing and portfolio management.
Experts on stage often highlight the importance of understanding your target markets, having industry experience incorporated in your decisions, proper due diligence and negotiation practices that extract as much value as possible from each investment and acquisition opportunity.
They also focus on disruptive companies whose technologies or widgets create a unique value proposition within their target markets. Everyone knows that a me-too product is simply playing a pricing game when a first-to-market product often ends up owning the category…
The best-known investors often share insights into their investment models and processes. Some explain how they value profit more than earnings per share. How they prefer identifying early stage companies before they become unicorns or how they diversify risk based on micro economic factors specific to each country where they target their investments.
What’s interesting is what they don’t say… They don’t discuss the archaic process of investing and why it has taken so long for investors to incorporate technology into their business models.
For millennia the investing and fundraising dance has played the same song. Companies pitch anyone who will listen and investors listen to thousands of pitches that never had a chance of being a fit. While the props being leveraged during pitches have evolved, the time wasted by both investors and companies remains largely unchanged.
The reason is cultural.
Take dating as an example. Thirty years ago, people went on dates with anyone who said “yes”. Most dates failed to advance and significant time and money was wasted wining and dining people who were fundamentally not a match.
Twenty years ago, online dating services started offering introductions to people based on emotional preferences and some personal data. People still dated before getting married but now their first dates were being filtered so that less time was wasted courting partners who were obviously not a fit.
It is important to note, while people were starting to use online dating services twenty years ago, they wouldn’t discuss it publicly. At weddings it was rarely admitted that the couples met using a dating service. It was not yet culturally acceptable to admit that technology could add value to the dating process.
Nowadays, online dating services are the commonplace. They connect people using algorithms that are intended to provide greater chances of success in meeting a mate than by natural selection.
The investment process is twenty years behind the dating process.
On stage, famous and successful investors admit freely that they waste a significant amount of time listening to pitches and companies who would never have been a fit. They date without filtering their partners…
It’s now time for investors to embrace technology in the same way online dating disrupted the dating scene.
Technologies like Sploda.com have automated the due diligence process, empowering investors to use real due diligence filters to ensure that the companies they “date” meet their investment criteria.
On Sploda.com, investors spend five minutes selecting their unique due diligence criteria and metrics. Automated algorithms filter out a global database of companies seeking capital or sale and the investors are sent due diligence summaries of the companies meeting their criteria. Free.
Why free for investors? Because cash is king and queen.
Companies pay $29.99 USD/month to have the opportunity to be matched with real investors. Businesses like Sploda.com are global networks of companies and investors and are successful based on the volume of users rather than high priced transactions.
Investors use technologies like Sploda for simple and efficient lead flow of investment and acquisition opportunities, or they can set Sploda.com up to filter every single pitch submitted to their firm.
Instead of combing through pitch decks and emails, a succinct due diligence summary for each matched company is available to investors, including the contact information for the company.
Investors’ contact information is not available to their matched companies however, investors use Sploda.com to protect their privacy while adding to their valued lead flow.
This is a technology match made in heaven.
As investors embrace disruptive technologies like Sploda.com, the fundraising dance odds improve and more transaction marriages result.
It won’t be long until investors begin admitting that they met their most celebrated investment companies using services like Sploda.com as well.