Due diligence for energy innovation fund

Seed fund investing in energy innovation asked CIVITTA consultants to execute market and technical due diligence of enterprise they considered to invest in.

Due diligence analysis as a crucial element of the investment process

Polish seed fund focused on supporting regional innovators from the energy sector, commissioned CIVITTA to execute market and technical due diligence. The analyzed enterprise was a start-up that offers a modern PCM-based heat management solution (Phase Change Material).

The objective of this consulting project was to validate innovation from the perspective of:

• client awareness and needs,
• potential market size,
• scalability potential,
• existing competitive solutions.

Structured technology and market analysis executed by external consultancy specializing in due diligence projects is an inherent element of the investment process for the client. Our client expected to receive recommendations about enterprise development and the investment decision itself.

CIVITTA conducted a structured analysis of business potential and technology

In this project, our experts focused on two areas: market and technology.

In terms of the market we have analyzed:

• the product features, including its strengths and weaknesses,
• market size and its potentially addressable part,
• targeted audience,
• market opportunities and threats,
• competitive landscape,
• proposed go-to-market strategy,
• key risk and mitigation options.

In terms of the technology we have analyzed:

• specific, innovative features,
• technical feasibility,
• areas of application.

Due diligence analysis was based on triangulation of various information and data sources such as:

• assumptions and calculations provided by the start-up founders,
• statistical data and industry reports,
• expert interviews.

Key takeaways and recommendations for the investment committee

CIVITTA delivered a comprehensive report focused on the most relevant findings and actionable recommendations in the area of innovation development. The results were presented to the investment committee as a feed for the investment decision process. CIVITTA provides investment fund clients with an independent investment opportunity assessment in a flexible and on-demand cooperation format.