Investment thesis

Investment thesis

The nature of innovation means that it can be difficult to predict with exactitude the sectors in which innovative firms are likely to emerge.

We, at Calibrate, believe that the fragmentation of Financial Services and Traditional Industries is likely to continue as smarter, leaner and more efficient start-ups adopting digital technologies and innovative business models continue unabated.

Industries such as Banking & Insurance, Real Estate, Regulatory & Compliance and many others will attract more disruptions as incumbents struggle to adapt.

We have identified a number of sectors that we consider to be good sources of capital efficient, fast growth companies and we intend to focus our origination activities in these areas:

1. FinTech
2. Data-Driven Services
3. Software Disruption Including Saas




1. FinTech

Financial institutions are suffering under the weight of regulation, legacy technology cost cutting pressure and talent drain. FinTech companies are leveraging modern technology to re-imagine, redesign, augment or replace established elements of the value chain in the financial services industry. Fintech investment opportunities include Peer-to-Peer platforms, Marketplace Lending, Payment innovations, Blockchain and Digital currencies, Next-Gen Credit Scoring, Capital Markets solutions, Wealth Management innovations, Insurance Technologies and many more.




2. Data-Driven Services

Data-Driven start-ups use technology to collect, analyse and visualize large data sets to identify, communicate and predict valuable information and trends. Because the amount of data being created and the number of ways in which it is generated are growing, smart companies can leverage information at scale to drive value and exploit strategic advantages which give them a competitive edge over incumbents. Opportunities in this area include services relating to Business Intelligence, Data Automation, Data Integration, Data Visualization, Predictive Algorithms and Machine Learning.




3. Software Disruptions Including SaaS

Software allows the creation of capabilities and services which were unthinkable even a few years ago. Software provides business tools such as user authentication, recommendation engines, efficiency tools, syndication and affiliation services, customer support, aggregators, Etc. Within this category, SaaS companies present many investment opportunities. All enterprise software is gradually becoming SaaS because of the flexibility offered by the SaaS model, the small recurring usage fee as well as the low setup costs. Examples include marketing and sales tools, productivity suites, collaboration platforms, finance and administration tools, customer support and many more.