The Art of Choice: Moonshot’s Investment Due Diligence Process Explained

In a world where private market assets had long been exclusive and inaccessible to mass-affluent investors, Moonshot was founded with a clear mission: democratize this lucrative investment landscape and offer Moonshot members access to top-tier private companies.

There are over 150 million startups in the world, with more coming online daily. If this seems like 150 million investment opportunities, remember that only 50% of new businesses survive to the 5th year. Moreover, many of the most lucrative opportunities are difficult to access; nearly 87% of all US companies that generate over USD 100 million in revenue remain private.

Given the challenges of uncertain futures and private markets, finding the next “unicorn” to invest in may seem impossible. But Moonshot rises to these challenges by implementing thorough due diligence processes, enabling us to offer our members top-tier, carefully vetted opportunities.

Moonshot will be growing fast because they have real foresight with their investments.
— Dominic Largo, board member

1. Compliance With Our Strategic Criteria

Our due diligence process begins with the Moonshot team meticulously screening each potential investment and company, as well as their partners. We focus on established companies with solid track records rather than riskier startups. Our strategic investments target advanced sectors like AI, cleantech, renewable energy, and real estate, where innovation is reshaping industries and has the potential for exceptional returns.

At this stage in our due diligence, our team also explores market trends to identify both the strengths and potential risks of each investment, ensuring that only those with the most optimal risk-reward balance reach our network.

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For instance, real estate is a cornerstone of wealth generation but presents investors with challenges like high prices, misalignment, or poor performance. To address these concerns, our real estate due diligence process includes screening for companies that combine this asset class with innovative, high-performing approaches to hospitality.

Two such companies that have both garnered international recognition are Le Bijou and Amēa Villas. These tech-enabled companies offer dynamic pricing and multiple income streams and are resilient against the growing trend of rental caps.

As a result, through a network that spans the globe and includes locations in New York, Hong Kong, and Switzerland, we source opportunities from diverse channels. Each potential deal undergoes a rigorous initial review, with only the most promising advancing to the next stage of our process.

2. Analyzing Business Models and Financial Statements

Once an opportunity passes the initial screening, it undergoes a meticulous examination of its track record, and analyses of its past performance, growth trajectory, partnerships, collaborations, and more. Particular emphasis is placed on identifying companies with unique competitive advantages — such as proprietary patents or breakthrough technologies — that position them for substantial future returns.

In assessing prospects, we meticulously evaluate the company’s total addressable market (TAM), serviceable obtainable market (SOM), and serviceable available market (SAM), alongside industry potential and strategic business plans.

Our focus is on understanding both where the company stands today and where it is poised to go over the next ten years or more. In this stage of our process, we also analyze the company’s key milestones and strategic initiatives to ensure alignment with long-term growth objectives and profitability.

Central to this stage of our evaluation, we also explore the management team. Leadership is the driving force behind a company’s success, so we seek out visionaries akin to Elon Musk, Sam Altman, and Dario Amodei — enthusiastic leaders with the ability to implement their vision into profitable businesses. A company’s future is often a reflection of its leaders’ drive, and as such, we prioritize investments in teams that demonstrate exceptional capability and a proven track record of delivering results.

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By integrating these elements into our due diligence process, we help ensure that each investment opportunity has the potential to achieve significant returns, driven by both strategic market positioning and the exceptional leadership of its founders.

3. Compliance With Legal and Legislative Requirements

Once an investment opportunity passes the previous analyses, it undergoes a thorough compliance review to meet Swiss regulatory and legislative requirements. Our legal advisor Mark Montanari examines all relevant legal and investment documents to ensure adherence to the highest standards. This rigorous scrutiny ensures that every deal is compliant with Swiss law, protecting investors and aligning all aspects of our investments with applicable laws.

Moonshot also always attaches great importance to obtaining the contracts underlying the investment for inspection in particular in order to critically examine and verify their compatibility with the investment opportunity that was presented [...] This is to ensure that the structure and functionality of the investment [are] precisely understood and that investors’ actual requirements can be clearly defined.
— Mark Montanari, Partner and Legal Advisor at Moonshot

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4. Network Decision

Finally, once an opportunity has cleared all of the previous stages, it is presented to our investors on the Moonshot website. The final decision to engage with each opportunity, however, always remains with the investors themselves.

At this stage, Moonshot’s role is not to recommend or act as an investment advisor but to empower investors with the tools and information they need to make informed choices, which lies at the core of the due diligence approach. The responsibility of comparing and selecting deals lies with the investor, supported by our commitment to transparency. At the same time, our Investor Relations Managers are always in touch with the community to make a quick call and provide more details about current deals.

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Access the Most Attractive Opportunities

Over the years, Moonshot’s due diligence process has proven its effectiveness, providing community investors with regular access to the most attractive opportunities available in the private equity market. From compliance with our strategic criteria to legal review and its presentation to our investors on the Moonshot website, each stage is designed to safeguard investor interests and provide them with access to lucrative investments on the private market.

By adhering to this rigorous process, Moonshot Network has earned the trust of over 10’000 investors worldwide, continually expanding our portfolio with top-tier deals.

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