Managing Risk

Essex's investment committee differentiates between concept risk and execution risk.

We invest in Execution Risk

Execution risk is determined by the likelihood that a startup management team can deliver a successful product launch and scalable operations within the stated timeframes and capital requirements:

• Ability/track record to scale and organize orderly growth
• Logical and actionable business plan
• Launch product or service on time and in budget
• Meet market demand profitability

We do not invest in Concept Risk

The business model, the product or service concept and market validation constitute the concept risk and effectively determine whether a business has any chance of succeeding:

• The business model may not be viable
• Product or service is not competitive, including price and features
• Market validation weak or unsubstantiated