Investing in emerging markets can be an incredibly tempting venture. The high risk/ high reward stakes are likely to draw in investors both big and small.
So how do you choose?
It is essential to analyze both the start-up and the industry they will be operating within:
You can start by defining the niche space and reviewing the evolution thus far of the industry. It is also important to note current challenges in the market and potential future challenges and advancements.
When analyzing the start-up, you should start by examining both the CEO and their team. What are their strengths, weaknesses, and past accomplishments?
Next, you should define the problem they are solving and how. You want to be sure they are solving the whole issue, and not only part of it. Their idea must be protected so that other space players do not easily duplicate it.
Finally, you want to understand the future aspirations of the company. Are they prepared for upcoming challenges and advancements within the industry to ensure that they are fully prepared and equipped to keep up with the competition?