Often, executives are asked to take a chance on an equity position in a new startup. The chance to get a big payoff brings significant risk, but sometimes the risk is masked by overly-optimistic descriptions of the technology and the capability of the people involved. That’s why TSC was called...
An Executive was offered an equity stake in a security technology company in the process of a “restart.” A restart is a company that has failed once, but with the infusion of new people and capital, they're given a second chance. This Executive was concerned with the stability and viability of the company's core technology product, and its ability to sustain a future channel. Specifically, he wanted to know if the product was sound, and if the people were good enough to make the company work?
Using publicly available information, and after reviewing the product for the Executive, TSC analysts were able to determine from the way it was built and marketed, that the product was already becoming a commodity. Research also proved that the company’s vision was not being carried forward, and the company had a high employee turnover, particularly at the executive level.
The client decided to look elsewhere to invest.
TSC's research, delivered in an easy-to-read report and an executive presentation, allowed this client to make an informed and calculated decision about what to do with his time and money.