KVA
Venture Capital

Investment thesis: What we look for in early-stage ventures

November 28, 2024KVA Investment Team

A deep dive into how KVA evaluates and selects investments. Our criteria, our process, and what makes us different as investors.

#venture-capital#investment-thesis#startups#funding

Not Just Capital — Operational Partnership

Let's be clear about what we are and aren't.

We're not a traditional VC that writes checks and waits for returns. We're not passive investors who attend board meetings and offer occasional advice.

We're operational partners who happen to invest.

When we put capital into a company, we get involved — strategy, technology, marketing, operations. Our investment is the beginning of a working relationship, not a transaction.

What We Look For

1. Executive Founders

The profile:

  • Technical skills in the core business
  • Aged 26-50 with relevant industry experience
  • Track record of execution (not just vision)
  • Coachable but confident

Why it matters: Early-stage success depends overwhelmingly on founder capability. The best idea with the wrong founder fails. A good idea with an exceptional founder often succeeds.

What we assess:

  • Deep domain expertise vs. surface-level understanding
  • Ability to attract and retain talent
  • Decision-making under uncertainty
  • Resilience and adaptability

2. Validated Traction

What we need to see:

  • Already generating revenue (not just "promising pilots")
  • Clear commercial momentum
  • Customer validation signals
  • Evidence of product-market fit

Why it matters: Pre-revenue investing is a different game with different risks. We focus on companies that have proven initial market demand.

What we assess:

  • Revenue growth trajectory
  • Customer acquisition metrics
  • Retention and engagement data
  • Unit economics (even if early)

3. Scalable Model

The requirements:

  • Geographic scalability potential
  • Business model that improves with scale
  • Clear path to European expansion
  • Defensible competitive position

Why it matters: Our focus is on building valuable, impactful companies. That requires models that can grow beyond initial markets.

What we assess:

  • Market size and dynamics
  • Competitive landscape
  • Barriers to entry and defensibility
  • International expansion feasibility

4. Strategic Fit

Our focus sectors:

  • Fintech and financial services
  • SaaS and enterprise software
  • Retail tech and customer experience
  • Cybersecurity and data protection
  • Climate and sustainability tech
  • Food tech and agriculture
  • Gaming and entertainment

Why it matters: We add the most value in sectors where we have deep expertise and networks. Strategic fit means we can actually help, not just fund.

What we assess:

  • Alignment with our operational capabilities
  • Network effects and connection opportunities
  • Synergies with other portfolio companies
  • Long-term sector trends

Our Process

Stage 1: Initial Screening

Every opportunity goes through MadarAI, our proprietary scoring platform.

What we evaluate:

  • 18+ key performance indicators
  • Founder background and capabilities
  • Market opportunity and timing
  • Competitive positioning

Timeline: 3-5 days for initial assessment

Stage 2: Deep Dive

For opportunities that pass screening:

Due diligence includes:

  • Financial analysis and projections
  • Technical and product assessment
  • Market research and competitive analysis
  • Customer and reference interviews
  • Legal and compliance review

Timeline: 2-3 weeks

Stage 3: Investment Decision

Our investment committee reviews:

  • MadarAI scoring and analysis
  • Deep dive findings
  • Strategic fit assessment
  • Value-add potential

Timeline: 1 week

Stage 4: Deal Execution

What we negotiate:

  • Investment amount and structure
  • Board and governance arrangements
  • Operational support commitments
  • Follow-on terms

Timeline: 1-2 weeks

Total process: 3-4 weeks from first contact to term sheet

Investment Parameters

Ticket size: €35K - €70K

Stage: Seed / Pre-Series A

Geography: Europe-focused, Italy priority

Structure: Equity, typically with anti-dilution and pro-rata rights

What We Bring Beyond Capital

Strategic Support

  • Business model refinement
  • Market positioning and strategy
  • Growth planning and prioritization
  • Fundraising strategy for future rounds

Technology Resources

  • Access to our AI and development capabilities
  • Technical architecture review
  • Integration with KVA tech stack where relevant
  • Ongoing technical advisory

Marketing and Growth

  • Performance marketing support
  • Brand and positioning work
  • Growth strategy and experimentation
  • Network introductions

Operational Excellence

  • Process optimization
  • Hiring and team building
  • Financial operations
  • Compliance and governance

Why Founders Choose Us

Speed: 3-4 weeks from contact to term sheet. No endless meetings.

Value-add: Genuine operational support, not just board seats.

Alignment: Skin in the game — we succeed when you succeed.

Network: Excellence Group ecosystem and European connections.

Experience: 20+ years of building and investing in startups.

What We Expect from Founders

Communication: Regular updates, honest about challenges.

Execution: Bias toward action, not endless planning.

Coachability: Open to input while maintaining conviction.

Integrity: Transparent dealings, aligned interests.

Ambition: Building something that matters, not just a lifestyle business.

Portfolio Spotlight: Pelomatto

Company: Mobile pet grooming platform

Why we invested:

  • Executive founders with vertical expertise
  • Exceptional traction: +370% revenue growth
  • Scalable model: playbook works across cities
  • Strategic fit: pet care is a focus sector

Our support:

  • Growth strategy refinement
  • Marketing and customer acquisition
  • Technology optimization
  • Partnership development

Results: Category leader in Italian market, preparing for expansion


Think you might be a fit? Submit your venture through our Call4Ventures program or reach out directly.

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