The company rating exercise can be organised in a wide variety of ways depending on the pursued objective. With the RateandGo start-up rating, the objective is to offer a genuine selection of companies whose performance model gives them every chance of success.
A selective, exacting rating model
RateandGo has been designed to meet a need expressed by investors, who are precisely on the look-out for an exacting classification system, to give them an understanding of the start-ups they want to invest in. To save time, investors want a strong, highly qualified selection of start-ups. Like the “Survivor” reality TV show, the ruthless criteria used sort the wheat from the chaff, only leaving the best managed start-ups.
Note that the videos are an integral part of the rating as they contribute to the start-up’s credibility. In our experience, for four out of five investors, they’re also a real incentive to make contact.
Key criteria to take into account
Of the many points of interest in the RateandGo questionnaire, some can considerably help to improve a start-up’s rating. Consistency between the appended documents and the responses to the questionnaire (storytelling, business plan, business model, canvas, etc.) is paramount. By demonstrating their credentials in the tools essential to creating a business, start-uppers can demonstrate their strategic vision. The analysis by the exaegis consultant is therefore based on concrete evidence, making it of better quality and more relevant.
The intensity of the investment risk is assessed according to the company’s stage of development. The stage of development is therefore a crucial parameter which can significantly alter a start-up’s rating (threshold effects). The more advanced the stage declared by a start-up, the more demanding and stricter the rating requirements.
It is therefore essential to determine this properly, as the exaegis analysts confirm the assessment of the development stage based on the responses and documents submitted by the start-up, to ensure that it the start-up is not penalised and so as not to compromise the decision-making process of investors.
To simplify the stages of development:
- Formation – Idea (-2): the implementation of the entrepreneurial project has not yet been fully determined. The team is in the process of being constructed.
- Formation – Conception (-1): the business model and business plan are established, as is the vision.
- Validation of concept (0): the product is developed and ready to be launched in its market.
- Validation of model (1): the product has been tested and validated by a panel of potential customers.
- Structuring of growth (2): the product has been released on the market.
- Acceleration of growth (3): sales are increasing rapidly.
Key to the start-up rating grid
The RateandGo rating can be interpreted as follows:
- Below 40/100: the start-up’s strategic vision can be improved. Key elements in the analysis are missing or must be improved to consolidate the business model.
- Between 40/100 and 60/100: the start-up has solid foundations. By refining the key criteria listed above and working on weaknesses, this score can easily be improved.
- Between 60/ 100 and 80/100: the entrepreneurial project is very well-executed; it is from this base score that RateandGo communicates the ratings to its Corporate Account and Investment Fund contacts.
- Between 80/100 and 100/100: the project is exceptionally well managed.
Don’t be scared of the scores! A score that might seem average may actually be a very good score recognising the management put in place by the start-up founders. When you tell people about your Rateandgo rating, do explain to them the desired requirements, and refer them to this article.