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APA
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Business & Marketing
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Essay
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English (U.S.)
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Topic:

Prospect Investment on Commercial Software and Robotic Systems for Online Health Service

Essay Instructions:

You will evaluate a business seeking funding on the SeedInvest online angel platform or you will receive a company from me. Your assignment is to provide a two-page (maximum) deal memo to me outlining your assessment whether or not I should investigate the company for possible investment. This analysis will account for 30 percent of your grade.
Here is what you need to look for in the deal memos:
Large addressable markets(ideally $1B or greater) that are experiencing rapid growth. Companies pursuing markets less than $1B can be considered in select cases and when there is credible evidences of rapid growth in the market.
Market traction that is demonstrated by existing sales or pilot programs with customers.
Customer need that is shown by real customer problems that cause severe pain that customers are willing to pay a lot to solve.
Revenue model, or way of making money, that makes sense for the business with strong margins that are sustainable in the face of competition
Sustainable competitive advantagesresulting from patents, trade secrets, differentiated features/ business models and first mover advantages.
Customer acquisition process that is well understood, with a clearly defined customer and a method for obtaining those customers.
Experienced leadership/teamsthat bring passion and relevant domain expertise to the venture and are intellectually curious, coachable, collaborative and motivated to succeed.
Capital efficient business modelsthat require limited capital to develop and commercialize products/services and achieve an exit.
Terms of the deal that allow the investor to make money in a reasonable time frame given the potential for dilution, valuation of the investment, and the multiples on exit.
During the semester, you will have numerous presentations from well-known experts who will help you to understand how to evaluate these dimensions in greater detail. But the mechanism for doing so will be a two-page memo. Your grade will depend more on your paragraph of analysis outlining the logic of your evaluation rather than the evaluation itself.
Each paragraph will provide your assessment of that dimension (e.g., market traction, team, customer need, etc…). You will provide a sentence explaining why that dimension is important (e.g., “To succeed in a business selling widgets to factories, the factory owners need to have widgets to speed their production process.”) You will need to provide a sentence explaining how the company provides addresses that issue (e.g., “Widgetmaker offers widgets that speed the production process by 18 percent.”) Finally, you will need to provide a sentence showing the data from the company in support of the previous statement (e.g., Widgetmaker ran a test of its product at 12 pilot companies on 116 product lines which showed that the average production process increased by 18 percent with a range of 3 percent to 71 percent.)

Essay Sample Content Preview:

Final Deal Demo
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Final Deal Demo
The SeedInvest platform has several investment platforms mainly made up of prospect companies and start-up businesses. I chose to analyze, NowRx, a company using commercial software and robotic systems, for an online health service that enables same-day pharmaceutical delivery and telemedicine services. The company meets the minimum criteria for selection since it has a targeted global market of $61 Billion.
Before deciding on the prospect investment, it is also vital to consider the company's market penetration that may be shown via current sales or client trial projects. Nox has engaged with eight micro-fulfillment regions and five large-scale territories serving over 35000 customers. In the period, the company was able to deliver more than 350,000 prescriptions. The sales translate to significant market penetration and expansion of over 250% within one year. Additionally, the firm has performed outstandingly in its revenue generation achieving over 70% year over year increase in the first half of 2021 and a 90% revenue growth in 2020 from 2019's figures. These figures translate to an exponential sales growth of over $13m in 2020 and over $9M in 2021's first half.
Secondly, it is vital to analyze the customer need shown by real customer problems that cause severe pain that customers are willing to pay a lot to solve. Customers and medical care recipients are often burdened by the strenuous activities of traveling to care facilities for their medicine and consultation. Nox is reshaping healthcare by making it more accessible, convenient, and inexpensive for all individuals and families. Nox provides patients with an end-to-end solution for acquiring the prescriptions they need, when they need them, by providing same-day pharmacy delivery and telemedicine services, among other things.
The company has an efficient customer acquisition built upon providing value and efficiency to consumers. Mainly NowRx provides patients with a user-friendly, convenient, and cheap platform that allows them to get same-day free drug delivery and telemedicine services. Searching and applying discounts, finding specific prescriptions for a variety of conditions may be filled online. The automation ensures increased dispensing speed while lowering error rates. Also, filling new medicines or refilling existing prescriptions using NowRx. Insurance Approval & Payment Assistance became more efficient. Consumers are free to make consultations with a pharmacist or physician. There is also live assistance for queries about pharmacy and related topics.
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