Our Unique Investment Criteria

Our unique investment criteria set us apart and guide our selection process when partnering with MSMEs. We prioritize investments that demonstrate both high returns and long-term sustainability. By adhering to these principles, we aim to build a portfolio of resilient businesses that can weather challenges and contribute to the overall success of our investment strategy.

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Focus on Established Businesses with Captive Markets

We prioritize investing in sectors where a captive market exists. Our primary focus is on expanding the businesses of already thriving MSMEs, especially in areas where there is a significant supply-demand gap. We’re not necessarily looking for the next “big idea,” but stable, predictable businesses where breakeven can be reached within a few months, thereby minimizing risk.

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Risk Management

We carefully evaluate the risks associated with each investment opportunity and assess the strategies in place to mitigate those risks. This includes analyzing factors such as industry dynamics, regulatory compliance, and potential market disruptions. We aim to partner with MSMEs that demonstrate effective risk management practices to ensure the sustainability of our investments.

Partnership Alignment

We prioritize partnerships with MSMEs that share our vision, values, and long-term goals. We believe in building strong relationships and working collaboratively with our portfolio companies to provide strategic guidance, operational support, and access to networks that can enhance their growth and success.

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Team Transparency and Coachability

We believe in the power of passionate and driven teams. We look for MSMEs with transparent operations and teams that are coachable, ready to work with advisors, a Board of Directors, and willing to share regular updates of their day-to-day operations.

Significant Demand for Expansion

We invest where there’s demonstrable and significant demand for the proposed expansion, solution, product, or service. This demand is a precursor to financial viability and successful return on investment.

Limited Competition and High Entry Barriers

Our investment interests lean towards sectors where the competition is scarce, and entry barriers are high. This reduces competitive pressure and improves the chances of sustained profitability.

Existing Profitability or High Demand

We are interested in MSMEs that are either already profitable or are in industries with acute demand for their product or service but inadequate supply.

Geographical Vicinity

We invest in MSMEs based in the same geographical vicinities as ours, ensuring a more hands-on and intimate investment approach.

High Return Potential

The MSMEs we invest in should have the potential to generate a minimum 50% annualized rate of return, striking a balance between risk and reward.

Equity Stake

In line with our equity investment approach, we seek a 25%-50% preferred equity stake in the MSMEs. This ensures that we have a significant say in the business direction, without eroding the entrepreneurial spirit of the MSMEs.

Conclusion: The blend of Crypto and MSME

In conclusion, DeSME presents an exceptional opportunity in the world of cryptocurrency investment, offering a unique value proposition that bridges the gap between traditional offline MSMEs and the dynamic crypto landscape.

Yet, our approach is far from a complete divorce from the crypto realm. While our primary focus lies in empowering and supporting MSMEs, we recognize the immense potential within the crypto space as well.

In this regard, we intend to adopt a hybrid strategy where we would also seek for the development and deployment of revenue-generating utilities/tools within the crypto landscape, where the revenue could be shared back to our token holders. The objective behind this amalgamated approach is to embrace best of both worlds and offer a diversified and all-weather investment portfolio.

Further insights into this balanced approach can be found in the tokenomics section, where we delve into the comprehensive reward distribution mechanism.

Have A Business Idea In Your Mind?

DeSME is your gateway to growth in the MSME and crypto sectors. Write to us now! We’re eager to collaborate and transform your vision into a successful reality.