On Value Creation

How to create value? 

This is one of the most important questions any business or individual should ask repeatedly. Of course, this multi-dimensional question keeps changing according to the nature of the business, stage, and changing times. 

In Artofin we always keep asking ourselves how to create better value. In this post, we will try to communicate it to others. 

Start with “Why” 

  • Value creation is closely related to our investment philosophy and methodology
  • Increase the chance of success for all the stakeholders
  • Because our involvement  is much needed in some less familiar markets 
  • Our job is more enjoyable by being involved and creating extra value
  • In most cases, if we cannot make substantial value, we won’t invest

Before investing 

The value creation process starts long before we make an investment decision. 

After we have a solid understanding of a specific company, we reach out to potential clients, industry insiders, and partners across the globe.  

We check their interest, ask about their opinions, and try to understand the local competition and competitive advantage in markets that are not very familiar to Western entrepreneurs. By doing so, we expose entrepreneurs to new opportunities, ideas, and markets.

This stage is crucial for our investment decision and the road ahead. 

Investment decision 

Following this meticulous process, our team knows more about the target company and its market potential. In other words, we considerably mitigate the investment risk by doing our homework. 

Even if we decide not to invest this time, we are happy to promote business collaborations with various players, especially with our LPs, which are big and influential conglomerates in Asia. 

Post investment 

We have already well prepared for the following steps. We know what to do and what we would like to achieve.

Post investment, we are “All-IN,” working hard to promote our portfolio companies’ strategic goals. We are like an extended business development team, excluding the need to manage or pay for our services:) 

Conclusion 

Value creation is an extensive topic. We will keep exploring it and share more case studies in the following posts. 

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