Sergey Kartashov, the chief executive officer of Generation Partners, talks about how to find a profitable IT startup in an overloaded startup market. The work of an asset management firm includes various activities to be performed including market analysis, diversification of investment portfolio, and studying new trends. The CEO of Cypriot company shares details of their work.
Finding Nuggets and Bringing them to Investors
The job of asset management firms is to find potential startups and bring them to investors. The experts study various aspects of a startup including legal compliance, competency of employees, and marketing plan. Many developers create unique products but they fail to market them. Many projects with the brightest potential fail to compete with various other similar offers present on the market. “Our task-just like gold hunters-is to find nuggets and bring them to investors,” says Sergey Kartashov.
Always Looking for Unique Products
You will see thousands of startups on the market. The most important job of an analyst is to find a unique, high-quality, and valuable product among them. The brutal fact is there are only a few startups that have the ability to grow into a big company. There are various parameters of a startup that are analyzed by an expert. These parameters are the location of a company, its experience level, its latest income, and investments from other investors in it. “It is better to choose a company that has developed a unique, innovative product that solves an urgent problem,” notes Sergey Kartashov.
Advising Companies related to Relocation
Another important job of an IT asset management firm is to advise companies related to their relocation to a favorable destination. There are various countries in different categories that offer more or fewer benefits to IT startups. Cyprus is one of the best countries for IT startups to relocate to especially from the post-Soviet countries. There are various factors that make this island a favorable place for relocation including a fair tax policy, better legislation, good cost of living, a developed IT community, and developing infrastructure.
“As a nice bonus of relocation to Cyprus, I would like to note the relatively inexpensive but at the same time pleasant service,” adds Sergey Kartashov. The island has implemented an IP-Box regime to help companies grow their business under the desired taxation system. It is easy to register a company here. Moreover, the reporting system is also quite simple. The IP-Box regime allows the companies to pay taxes only on a part of their income. The corporate tax rate and VAT rate are also the least here as compared to other countries.
He also names some other favorable countries for IT businesses including Malta, the US, Germany, Estonia, Lithuania, and Poland. The CEO of Generation Partners is experienced in working with video technology and the IT ecosystem. He is leading this Cypriot company since 2019.