Please allow us to trigger your interest with a red flag…

Today, an expert early-stage LEAD investor’s ability to find the next great companies, is limited to how good their gut-feeling is.  

Years of pattern recognition have given them powerful patterns to make some practical predictions about the future, but it is still far from perfect. 

 To hit the next level of performance, one has to move beyond these gut-feelings or trusted patterns. 

There is only one way to move beyond one’s gut-feeling, and that is to find the first principles that govern the creation of great companies. 

The first principle way, is far more powerful , because it enables us to create new realities. By default, it enables creating (finding, co-creating and funding) new emerging market category kings. 

To realise the full benefit of the new way, one does however need to adopt a new rule set…

STOP PREDICTING THE WINNER, AND RATHER ALLOW THE PROCESS TO SURFACE THE WINNERS.

The TMARA GROUP, have discovered the first principles governing this space, have codified the new way within an investible virtual scalable vehicle called the Market Category Generator (MCG) , that has scientifically re-engineered a new path for start-ups to become new market category kings (and earn the checkered flag).

www.tmaragroup.com

THE PROBLEM: 

Entrepreneurs spend most of their time and money developing great new products. Very few entrepreneurs, however, realise that a great product is only the beginning.

Without a great market category, most new products will fail.

Very few entrepreneurs know how to develop a great market category, and reach what is called Product-Category Fit (‘PCF’).

A business with PCF will not easily fail, while a business without PCF, will not easily succeed.

Every innovative startup must therefore strive to reach PCF.

It is priority no 1. 

THE BREAKTHROUGH: 

Entrepreneurs are solving problems for customers / markets, but not all the problems they solve, will naturally lead to the creation of a new market category.

To create a new market category, the entrepreneur needs to solve a very unique type of problem for the market.

This type of problem tends to be hidden from the rest, and cannot easily be discovered through normal problem or needs analyses.

TMARA has developed a methodology to identify these unique problems, that by default, lead to a new market category.

This special problem definition, also provides the guiding principles, for creating an emerging new market category king. 

This insight has turned out to be a major breakthrough, that sets us apart from the rest. After four years of development and testing, TMARA is in a position today, to systematically find, found (co-create) and fund Emerging Kings. 

THE SOLUTION: 

The virtual factory-like Market Category Generator (‘MCG‘) brings the entrepreneur and the market-category fit expert together, through a process consisting of four main tests, developed to FORGE Product-Category Fit (PCF).

Each test assists the innovative startup to achieve the necessary critical components of the business, in order to reach PCF. In other words, each startup is under pressure to pass each test (in logical sequence), to stay in the race (in the MCG) towards PCF

Failing to pass any test in the sequence, dramatically reduces the chance of success, and normally results in a managed exit (from the MCG).

An expert assists each start-up to prepare themselves for each test, which sets the minimum required specification to become an Emerging King

NEW BUSINESS MODEL: 

Without the MCG, the start-up world is at best, a gamble.

The MCG creates investment optionality through the PCF tests.

In other words, each test provides critical information on the journey towards PCF,for which investment options are secured on the winners, the Emerging Kings

This assists the MCG investment consortium to delay investing (at Series A), in exchange for an option during the test stage, until the start-up has achieved PCF.

Stated differently, the MCG pays the costs involved during the testing phase, in exchange for an equity option, which may be exercised at a fair discount, once an Emerging King reaches PCF.

THE EMERGING KING:

An analogy – Elvis Presley did not seek to disrupt Jazz (an existing market category). He created a new music genre, within which he emerged as that new category’s king, and dominated it (including commercially) for decades.

The Market Category Generator (‘MCG’) turns innovative startups into Emerging New Market Category Kings, by default.

www.tmaragroup.com

#beamusthave

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Most, if not all, of the great startup successes (home runs) did not solve a BIG PROBLEM for a big market, they…

actually diminished a SIGNIFICANT LIMITATION for a big market. 

It turns out, solving a BIG PROBLEM and diminishing a SIGNIFICANT LIMITATION have very little in common. 

The way to find each is totally different, the way to deal with each is totally different, the way to go to market is totally different.

Different starting points, different strategies, totally different outcomes. A radical departure from Marketing 101.

Solving a problem makes the current better, while diminishing a limitation makes the new possible. Making the new possible ( as do ’emerging new market category startup kings’) tend to gravitate most (up to 75%) of the market capitalisation, and that is why they dominate the home runs. 

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If this is correct, this fundamentally changes the early-stage venturing and investment game forever!

THE BOTTOM LINE:

DIMINISHING A SIGNIFICANT LIMITATION IS NOT EQUAL TO SOLVING A BIG PROBLEM…

In fact, a significant limitation, is considered a fact of life, to the extend that the market doesn’t even know they can complain about it. It’s not a problem!. 

The definition of a SIGNIFICANT LIMITATION is:

(a) A ‘basic necessity’ with (b) an ‘inherent insufficiency’ that (c) forces ‘the adoption of a coping way’, as formulated by the authors.

  • The UBER example:

Before UBER, people (a) ‘have to find a taxi’, without (b) ‘the driver and the passenger knowing about one-another in real-time’, forcing people to (c) ‘cope by going to common physical taxi locations, where there is a higher chance to find one another’.

The UBER application diminishes the limitation, the (b) in the statement above, meaning the market does not need to cope like (c) anymore, and a new market category emerges, by default.

  • The Early Stage Venture Investment example:

Early stage investors (a) ‘have to make a decision to invest’ without knowing (b) ‘if and when the start up will takeoff (uncertainty)’, forcing investors to cope by (c) ‘betting on a portfolio of extraordinary entrepreneurs with clearly differentiated products solving a big problem for a big market’.

Every early-stage investor will tell you, the earlier you invest, the higher the level of uncertainty, in other words (b) – it is NOT a problem (they will tell you), it is a fact of life (the essence of a limitation)! 

Implications of the new intel (the intel that diminishes the above-mentioned limitation for early-stage investors):

The new intel enables answering two critical early-stage startup questions, for investors: 

1. Is success objectively one of the potential outcomes (~10%) 

2. Can one systematically improve the probability of success (from ~10% to the ~90%)?

TMARA has developed reliable processes (‘THE INTEL’) to find, co-create and fund startups that diminish significant limitations, as this intel represents the market’s ‘first principles’ which govern its adoption of new innovations.

We have also built a portfolio of startups, each having diminished a significant limitation for their markets, and hence facing shelf lives of 20 plus years…

TMARA engages with early-stage investors looking for opportunities to invest in these type of ‘new’ class of high-value/de-risked startups. 

Other topics by TMARA, include :

Stop turning friends and family into fools:

https://www.linkedin.com/pulse/stop-turning-friends-family-fools-anthony-nathan/

HOW to know, IF and WHEN a startup will reach Product-Market Fit:

https://www.linkedin.com/pulse/know-when-you-could-reach-product-market-fit-pmf-anthony-nathan/?published=t

The primary cause of startup failure:

https://www.linkedin.com/pulse/simply-true-anthony-nathan/

Most, if not all, of the great startup successes (home runs) did not solve a BIG PROBLEM for a big market!

https://www.linkedin.com/pulse/non-consensus-piece-info-changes-game-early-stage-venturing-nathan/

Please make contact with us at www.tmaragroup.com

(c) Copyright protected 2019 TMARA

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TMARA brings the new science of Product-Category Fit (PCF) to Consilience Ventures UK

Product-Category Fit (PCF) can be measured, and should be measured on an ongoing basis.

Do you have PCF or NOT? (See the test below)

If NOT, then allow TMARA to see IF and WHEN you could reach PCF. 

Engagement Process: 

The startup must first test their own PCF current-reality, ideally showing:

A market-related compound revenue growth rate, and

A suitably high Word-of-Mouth density.

If the startup does not pass the PCF current-reality test, TMARA has a roll to play, as follows…

TMARA completes a scientific PCF analysis, to determine if the startup has the DNA to reach PCF, in other words, that success is a possible outcome.

A PCF path of success is then presented to the founders, and upon agreement the PCF test program begins, as follows:

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1.   Viable Market Category Target

·     Test 1: Category Test (Validate there is a big enough, clearly identified target market)

·     Test 2: MUST-HAVE Test (Validate that the innovation can become a MUST-HAVE, in other words, reach PCF in the target market)

2.   Viable Market Category Product

·     Test 3: 10X Technical Test (Validate the feature set can perform to the MUST-HAVE spec)

·     Test 4: Value Rule Test (Validate customers are able to realise the full value)

3.   Viable Market Category Offer

·     Test 5: Guarantee Test (Validate that the offer, a value guarantee, hits the market’s sweet spot)

·     Test 6: Conversion Rate Test (Validate the value guarantee offer, results in a consistently high sales conversion rate)

4.   Viable Market Category Traction

·     Test 7: Ignite Test (Validate that a promotional event ignites the attention of the target market, to the degree that the startup is recognised as the emerging new market category king)

·     Test 8: WOM Test (Validate that Word-of-Mouth has become more effective than self-promotion and PMF has been reached)

PMF Program Rules:

  • The program is managed test by test.
  • Each test is scoped and resourced
  • Each test must be completed within a reasonable time line
  • Success criteria are agreed before starting each test
  • Test results are captured in a way that supports the next funding /testing rounds
  • Failure to pass a test will be investigated to see if a fatal flaw has been identified. 
  • Strict adherence to the following guiding rule: Do not predict the winners (those that can reach PCF), allow the test to reveal the winners.

Success is defined as:

The startup has reached PCF by successfully passing all 8 tests

Became a market MUST-HAVE in a big enough market

An agreed minimum valuation

Attracted Series A investment.

**************************************************************************More topics by TMARA

Heavenly angel investors now test for product-market fit before investing:

https://www.linkedin.com/pulse/heavenly-angel-investors-now-test-product-market-fit-before-nathan/

Stop turning friends and families into fools

https://www.linkedin.com/pulse/stop-turning-friends-family-fools-anthony-nathan/

HOW to know, IF and WHEN a startup will reach Product-Market Fit:

https://www.linkedin.com/pulse/know-when-you-could-reach-product-market-fit-pmf-anthony-nathan/?published=t

The primary cause of startup failure:

https://www.linkedin.com/pulse/simply-true-anthony-nathan/

Most, if not all, of the great startup successes (home runs) did not solve a BIG PROBLEM for a big market!

https://www.linkedin.com/pulse/non-consensus-piece-info-changes-game-early-stage-venturing-nathan/

www.tmaragroup.com

(c) Copyright protected 2019 TMARA