David smith factors

Factors We Consider

What We Consider


Smith Global Ventures looks for companies which have the potential to successfully execute their business plan and show a clear path to profitability. We strive to work with management teams who understand the importance of value creation and want to build lasting companies. With any new investment opportunity, SGV carefully considers the following:

  1. 1

    Management

    Does the Management team have energy and passion? Are they experts in the space? Can they sell key customers? Do they have experience with related markets, customers and suppliers?

  2. 2

    Product

    Is the product or service substantially different from current offerings? If applicable, is the technology ready for commercialization? Is the IP protectable?

  3. 3

    Sector

    Is the business segment large and growing rapidly? Do customers truly need the company's products or services? Is there sufficient perceived value to yield an attractive gross margin? Are there entrenched competitors in the market?

  4. 4

    Projections

    Are the projected revenues, profits, and market share realistic? Is seasonality an issue? Are there any government agencies which may block sales? Has the cost structure been established and how does it compare with other companies with similar business models?

  5. 5

    Timeline

    How much time is required to achieve profitability and positive cash flow? Will the company have enough cash after funding to make it to the next financing round? Are there sufficient resources to overcome any identified risks?