Evaluating IT Investment

Like other aspects of our consulting practice we have global experience with private investors investing in commercial software projects.  Most venture capital projects we have worked on are less than $25 million and the average value is about $5 million.  Only a few investments have been in excess of $100 million.

Benefits of our analysis

  • Increase return on investment
  • Improve profit margins
  • Reduce time to make a profit
  • Quantifies the unknown risks
  • Avoid investing in unprofitable projects.
  • Better communication

About half of our experiences on software ventures is consulting on projects well underway and the other half are new software ventures.  We help investors understand if they should:

  • Continue to fund a project or pull the plug
  • Fund a new software venture

Investor turn to us for a variety reasons including, but not limited to:

  • Quick Assessments
  • Significant Experience
  • International Knowledge Base
  • Comprehensive Analysis

Quick Assessments
While analysis is important getting the right information into the hands of our clients is essential.  Since we have a broad base of experiences, normally assessments can be done in less than 30 days. 

Significant Experience
We have consulted with firms in every industry relying on software. Our clients include some of the best   IT organizations in the world.   We have assessed firms with only a few IT developers to firms with over 4,000 developers.

International Knowledge Base
While we have a lot international experiences, most of our venture capital experiences are:

  • US investors funding a US based software venture
  • European investors funding US based software ventures

While the bulk of our experience is in the USA and Europe, we have consulted in Australia, South Africa, the Middle East and Asia.  Our database our knowledge is very diverse.

Comprehensive Analysis
We examine all aspects of the software venture and compare to similar established software ventures, Comerica software, or software development firms.

Develop project estimates based upon, but not limited to:
              - Project Size
              - Management Skill
              - Staff Skill
              - Environment
              - Technology
              - Proposed software development method logy (if any).

Determine feasibility based upon, but not limited too:
              - Staff Assessments
              - Project Size
              - Business Functionality
              - Market Potential

Evaluate projects underway by examining:
             - Productivity Rates
             - Hours Expended
             - Proposed Size
            -  Project Plans
             - Total Costs Expended
             - Defect Management
             - Quality Management
             - Documentation Management

Comparative Analysis
Hard data is analyzed using simple and complex statistical methods.   Soft data collected is analyzed from a behavioral perspective.   This allows us to compare productivity and quality levels to similar projects and to some industry averages.   We explain differences and perhaps even more important explain why there are differences.

Final  Reports
Assessment and valuation reports can be cumbersome to write because of the technical nature of the content.  Each report contains an executive summary outlining our findings.  Our reports also include extensive analysis and details to support our findings.  Our reports follow the Uniform Standards of Professional Appraisers.

Related Links

Venture Capitalist & IPO's
Software Measurement
Mergers & Acquistions
Benchmark Studies
Client List
Public Speaking

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