Here is my investment thesis. What’s yours? | by Martin Mignot | Medium

“Businesses that disrupt/create huge markets with a non-replicable product offering a must-have service, which gets better the more people use it.” Jean de la Rochebrochard (@jlr), a partner at TheFamily, recently published a very good piece on Medium titled “Here’s my investment thesis. What’s yours?” — below is my answer to his question. When thinking about investment thesis, one has to ask oneself: what is the outcome I am aiming at for the companies I invest in? At Index, the answer is very clear: we want our investments to exit for > $1 billion in less than ten years post our investment — either through an IPO or a large trade sale. We are hunting “unicorns”. Given that these exits are typically brokered by bulge bracket investment banks, one way to analyse them is through their lenses. What do they evaluate in a potential client? Four things: 1. Revenue, 2. Growth, 3. Margin, and 4. Risk. And that’s it. Because these are the only four variables needed to build a Discounted Cash F

“Businesses that disrupt/create huge markets with a non-replicable product offering a must-have service, which gets better the more people use it.” Jean de la Rochebrochard (@jlr), a partner at TheFamily, recently published a very good piece on Medium titled “Here’s my investment thesis. What’s yours?” — below is my answer to his question. When thinking about investment thesis, one has to ask oneself: what is the outcome I am aiming at for the companies I invest in? At Index, the answer is very clear: we want our investments to exit for > $1 billion in less than ten years post our investment —