All projects are inherently risky. Hyperion aims to manage this risk by leveraging our resources and assisting the company running a raise as much as possible in order for it to be a success. In return, this allows for the fund to negotiate favourable terms that other VC funds or investors may not be able to attain.
We assess the risk-reward trade off of each project given the particular discount, bonus or percentage raise offered to the fund. One particular project may offer poor terms compared to a slightly less favourable project that still has great potential. In this case we will assess whether the terms offered on the less favourable project are sufficient to provide a higher risk-adjusted return.
To navigate the risk of early stage investing, Hyperion will only invest in a business that satisfies a list of predetermined criteria, we will not invest in a business based on a promising idea alone.
Some minimum requirements are (non-exhaustive):
- A cohesive team with a track record of achievement
- Presence of technical and business development aptitudes within the team
- A minimum viable product (MVP)
- Indication of personal commitment to the business; and
- A unique business proposition that solves a real-world problem.