Garret Goldberg
Partner, Bee Partners
Michael Berolzheimer
Managing Partner, Bee Partners
March, 2021
This paper explains our theory on Vector-driven analysis in inception-stage investing, and examines what Vectors are, how, why, and when they work, and how Bee Partners applies them to more accurately identify unbounded potential in the earliest venture deals.
The fundamentals of classic financial analysis as applied by investors do not fully serve today’s inception-stage venture sector. For Founders and investors, the macroeconomic components of supply and demand do not necessarily exist. At the frontiers of innovation and business creation, conventional measurements are little better than guesswork. Thus, new analytical frameworks are needed to assess the potential of inception-stage companies.
This analytical dilemma is clear if we contextualize traditional financial analysis as a map with clearly defined landmarks and boundaries. Then, inception-stage investing becomes more akin to the early days of seafaring. When oceans were uncharted, mariners identified their location by measuring angles between the horizon and distant, celestial points, and optimized their journey by leveraging tidal and weather patterns. In the inception-stage venture paradigm, Founders and investors target horizons on the outer edges of industrial and technological eras, and then draw lines, or “Vectors,“ between these horizons and present-day economicandnaturalforces.
Whether piloting an ancient vessel, or developing a new technology-enabled business, successful venture navigation depends on discerning Vectors accurately, making continuous course corrections, and timing decisions advantageously to mitigate risk and drive progress.
About Bee Partners
Founded in 2009, Bee Partners is a pre-Seed venture capital firm that partners with revolutionary Founders working at the forefront of human-machine convergence across technologies that include robotics, AI, voice, i4.0, and synthetic biology. The firm leverages a singular approach to detecting new and emerging patterns of business as well as inside access to fertile but often overlooked entrepreneurial ecosystems to identify early opportunity in large, untapped markets. Bee’s portfolio companies consistently realize growth at levels that outstrip industry averages and secure follow-on capital from the world's top VCs.
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