Every successful investment begins with the same foundation. “A strong, driven, capable management team. They’ve got to have a vision and a purpose that’s exciting,” Richard emphasises. 

But vision alone is not enough. Founders must also show that they are solving a real problem for customers, supported by strong intellectual property. 

IP varies by sector. In technology and Medtech, it may take the form of patents or proprietary algorithms. In consumer technology companies such as Magic AI, an IW Capital portfolio company building a differentiated home fitness brand, it is rooted in technical innovation. “It’s strong IP that’s defensible and provides real value,” Richard notes. 

One of the clearest indicators of product-market fit remains simple. Someone has paid for it. But not just any customer. “Very often, in B2B sales, it’s big companies who buy from little companies they shouldn’t buy from,” David observes. 

When a major organisation adopts a product from a small, unproven supplier, it sends a powerful signal. “If it were a big European bank that bought it in Munich or London, this would indicate that the company has something unique, as large corporates see every technology and vendor in their space, they know everything and yet they still bought from this small innovative business.”