Our screening and evaluation process

Learn more about the criteria on which we evaluate the investment cases and the different steps in the screening process

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Every year we screen hundreds of companies of which less than a handful reach all the way to our incubator. Multiple meetings and evaluations are conducted in the process of selecting the startups we believe to be the most promising investment cases. Our selection process is thorough, but at the same time we aim to be flexible in our approach. For Arkwright X, it is important to be non-bureaucratic and able to act quickly when needed.

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Initial screening

We continuously search for promising startups through proactive screening. However, our network and connections in the startup community is just as important for identifying the right candidates. Through our presence in the startup ecosystem we get in touch with numerous companies, and by leveraging our network among angel investors and entrepreneurs, attractive cases arrive at our desk. The initial screening identifies companies that are within our focus area and that we believe to have an interesting solution and a strong value proposition.

Initial meeting and evaluation by our investment team

After the initial screening we proceed by arranging a meeting with the teams behind the companies we find promising, and potential cases are evaluated by our investment team. A key part of this stage is to assess mutual attractiveness and getting to know the team.

Due diligence process

A few, promising cases advance to the third step. An in-depth analysis (a due diligence process) is conducted to evaluate these investment cases in detail before the decision of whether to submit an investment proposal is made. The evaluation is based on a set of criteria we find crucial for being an attractive investment case and a good match with Arkwright X. Key components are the startup’s ability to provide highly valuable solutions to their customers, the scalability of the business model and the team quality. The evaluation process is done in close dialogue with the startup.

Final investment decision

The investment case is presented to Arkwright’s partner group, and then finally to all employees in Arkwright Consulting. A democratic voting determines whether an investment proposal is submitted. In the case where the voting turns out positive, we highly recommend the startups to do their due diligence on us as an incubator and investor as well. We are happy to provide connections with references from the startups in our portfolio. If both parts find mutual attractiveness and perceive the future collaboration fruitful the final investment decision is made.