INVEST

Our Approach

Sales Revenue/Sales Growth is King

Founders DO NOT know how to generate sales and revenue. There are three reasons why this occurs:

  • Lack of Sales Knowledge/Training. Many entrepreneurs are technocrats, engineers, financial professionals, or Professors; and do not understand how to develop sales strategy, and sales processes. There is a lack of sales training programs for entrepreneurs and early-stage companies.
  • Fear of Failure. No one wants to be rejected. By concentrating on other areas, entrepreneurs do not have to face rejection and failure.
  • Lack of funding. Founders spend too much time finding investment, which pulls them away from generating sales.

Active X-it concentrates on driving revenue, which validates business ideas, and reduces the need for future capital. We partner with successful sales professionals to validate business assumptions, drive customer discovery, develop successful sales strategies, and implement these sales strategies.

Milestone Based Investment

Founders DO NOT spend money wisely. We believe too much money is wasted developing business ideas and concepts. There are three reasons why this occurs:

  • Lack of Proper Customer Discovery. Founders develop products without performing customer discovery, or perform inadequate customer discovery. This results in “building a solution for a problem that does not exist” or “building a solution that no one can afford”. Can all problems really be solved?
  • Commercial Proof of Concept. Great ideas are not always successful. The marketplace is often brutal and non-forgiving. Often less money can prove whether a business concept will be successful, and allow Angel Investors to invest more with success.
  • Fiscal Accountability. Investors do not, and cannot, control spending. If entrepreneurs do not allocate funds appropriately, or spend recklessly or unwisely, the chance of success is greatly diminished. Less money forces an entrepreneur to identify the best use of funds.

Active X-it strongly believes in milestone-based investing to mitigate investor risk. We reward based on achievement, not on need. This prevents investing too much money in the wrong venture, and allows investors to invest more money in the right venture.

Instead of investing $250,000 into any single company, AXI will start each investment with smaller amounts and will increase the capital investment based on accomplishment (not projections or needs). Following this process will allow us to mitigate investment risk, and deliver a much greater return to investors. This will incentivize founders and startups with attainable performance focused targets to increase the chances for success and to eliminate “throwing good money after bad”.

Active Mentorship

Entrepreneurs are not superwoman or superman. Their time, energy, knowledge, and experience is limited. They need help. The RIGHT help, at the RIGHT time, from the BEST people. There are three reasons why this occurs:

  • Inadequate Resources. Start-ups spend a considerable amount of time securing key resources (marketing, advertising, legal, social media). And funding constraints often require them to hire the wrong people and/or accept substandard efforts. This hinders and delays revenue generation, which ultimately leads failure.
  • Distractions. When an entrepreneur is scaling a company, their time and energy are pulled in many directions. These distractions lead to lack of focus, and/or spending too much time on a task.
  • Novice Businesspeople. New business ideas are generated by a variety of people. Some are engineers and/or technologists. Some are professors or scientists. And many are young, without business experience. These people do not understand how to start, grow, and scale a business.

The Active X-it mentorship program redefines “mentorship” and creates a process to help drive success. We provide the contacts to identify the best resources, eliminate distractions, and provide the best advice. We help companies build the best product by wisely spending money and implementing the best strategies. Finally, if needed, we surround our entrepreneurs with any needed ancillary services.

We will focus on and work with companies with a hands-on active investment strategy, focusing on Implementation and Execution, aiming to fast-track and execute rapid go-to-market plans. Our approach is to create an active investment strategy that will allow the fund investors to be involved in the portfolio companies with a hands-on approach. The objective of this active mentoring program will be to leverage the expertise of our successful investors to create repeatable business processes that will be applicable to all portfolio companies. Properly implemented, this will lead a much faster “Go-to-market” phase and generate revenue rapidly and more efficiently.

And unlike our mentorship programs, Active X-it mentors are contractually obligated to work a set number of hours, and in return receive additional equity compensation in the portfolio company. 

SPACE