Situation

  • A national early stage niche investment fund was seeking new opportunities to identify investment preferences, business acceleration and expand its investor recruitment strategy.   Recognizing the need to identify new contacts, and more importantly, listen to the community to better understand what drives investment interest, this fund partnered with Community Analytics in the discovery process. The goal was to ascertain potential investor networks and uncover the investment preferences of Trusted Advisors.

Solution

  • Using a sophisticated program of direct communication, technology and mathematics, Community Analytics reached out to a select community of potential investors and advisors. The group was interviewed to assess interest in this niche market, as well as determine sources of investment advice and to build useful behavioral models. The research provided detailed maps of inter-relationships germane to investment fund decisions, including the names, titles, and locations of linked individuals. With this information, Community Analytics identified, evaluated, and profiled the key network members within the population. After determining the relationship dynamics, a study was designed to measure specific influence metrics.

Community Dynamics

  • Of the hundreds of investors and advisors who participated in the network research, 29 were identified by their peers as Trusted Advisors. 19 members provided a significant number of connections between decision makers in this population, placing them in critical network positions.

Results

  • Personal relationships are the #1 influence for decision making among investors and advisors.
  • Networks of investment advice are not dictated by company or geographic limits.
  • Trusted Advisors reached 45 to 60 other potential investors or advisors, on average, within just three degrees of separation.
  • 81% of all members expressed interest in this market, proving the niche fund as a viable investment.

Success

  • Professionals passionate about supporting private investment in education are able to connect with others who share this passion.
  • Investors interested in supporting education are able to connect with experts in this field and find opportunities to invest in companies with this mission.
  • Executives of companies focused on improving various aspects of education are able to connect with intellectual, operational and financial resources to help grow their firms.