TheClubDeal is screening about 3-4 opportunities a week.
It may happen that TheClubDeal, having evaluated a dozen of criteria might be positive for some opportunities, which, nevertheless, do not succeed in the sense of closing of the transaction.
The simple answer is: the Market.
TheClubDeal is, against its will, not allmighty. It will give a scoring worth its time to transactions that the market might reject, for a set of reasons, trust, experience, etc…
We have therefore tried to support “TakeEatEasy”, but were called in too late, despite the merits of the Company.
We have also missed finalizing a development capital for Assisto, a company, born in Belgium but addressing other markets in the field of optimization of insurance road accident claim processing.
The fact that the market has the ultimate word, giving its final consent to a development of a company, is a real source of comfort, for TheClubDeal, either as co-investor, or as facilitator of a transaction This being said, we believe, strongly, that it can also be -sometimes- proving itself wrong… Especially when it comes to valuations..
It, thereby, benefits of the value of a collective input into a transaction, and is a cross-check for a valuation, or estimation of the chances for success, where the wider public always will receive a weight for its opinion.
The market of Belgium does present two main challenges to be overcomed: it is economically narrow as the market is a population of 10 Million consumers, ish. The same applies to investment capability. There are probably not 5.000 investors capable and willing to invest the asset class of direct equity.
We are, not yet, a Silicon Valley.