For investors
10 Sep 2024

Backing the Best: How We Select Brands for Confident Investments

Investing is about trust. At Scramble, we don't just provide investment opportunities, we meticulously curate a selection of high-growth brands that give investors peace of mind. This careful selection is what sets us apart from other investment platforms. You're not just betting on potential; you're investing in businesses with proven growth, clear goals and solid foundations.

Backing the Best: How We Select Brands for Confident Investments

Our Unique Approach: Backing the Best, Together

Our commitment to selecting only the most promising companies is at the core of our platform's mission. Since launching our scoring system in early 2022, we have worked tirelessly to ensure that every brand offered for investment aligns with our values of transparency, growth, and financial stability.

In fact, we invest our own capital in each funding round - up to 20% in Group A - because we believe in the potential of the brands we offer. By putting our own money on the line, we share the risks and rewards with our investors.

The Scoring System: How We Identify High-Growth Brands

The backbone of our brand selection process is our proprietary scoring system. This system allows us to find and analyze companies and their founders based on a variety of factors, ensuring that we only select companies with the highest growth potential. Here's a closer look at how we do it:

1. Finding the Right Brands

Our search for exceptional brands begins with a focus on consumer goods, particularly in the UK, across multiple product categories. The brands we prioritize often reflect contemporary consumer values, including organic, eco-friendly, zero-waste, all-natural, non-toxic, cruelty-free and vegan principles. This allows us to tap into markets where consumers are passionate and engaged, and gives our investors access to brands with strong consumer loyalty and growth potential.

2. Scoring the Business and Founders

This dual approach ensures that we're not only selecting great products but also backing companies led by capable, driven entrepreneurs.

Brand Scoring

We assess the nature of the business and its sector. Our current focus is on Food & Beverage and Health & Beauty brands - two sectors with strong consumer demand and growth trends. Location also plays a role, with companies based in major UK cities scoring higher due to their access to larger markets and resources.

We review several factors to determine the stability of the business:

  • Growth potential
  • Profitability
  • Operational efficiency
  • Strong management
  • Financial stability

Founder Scoring

The strength of the founder or founding team is critical. We analyze their background, work experience, education and track record using platforms such as LinkedIn. We look for:

  • Strong leadership qualities
  • Entrepreneurial background
  • Established networks and connections
  • Strategic decision-making capabilities

Founders who score highly are those who demonstrate a clear commitment to growing their business effectively and sustainably.

3. Ensuring Legal Safety

Investing in a business is not just about growth - it is also about security. We conduct thorough due diligence to assess the legal security of each brand. This includes:

  • Business compliance checks
  • A robust risk mitigation framework
  • Contract and regulatory compliance reviews

Our goal is to minimize legal uncertainty and maximize the security of your investment.

Portfolio Protection: The Batch System

Investors on our platform don't invest in just one brand in a round but in a number of carefully vetted brands that we call a batch. This diversified approach further reduces risk by spreading the investment across multiple high-growth companies, each selected based on our scoring system. By backing a portfolio of brands, investors can mitigate potential losses and benefit from the collective success of the group. This strategy ensures that your investment is not dependent on the performance of a single company.

Putting Our Own Capital on the Line: “Skin in the Game”

We believe so strongly in the companies we back that we invest our own money in each round. In Group A, up to 20% of the funding comes directly from our own capital. This approach builds trust between us and our investors - your success is our success, and we're in this together.

Since 2022, we've funded 73 brands for a total of €6,849,077. To date, €4,629,373 has been repaid, demonstrating the reliability and effectiveness of our system.

Conclusion: Invest with Confidence

Our entire selection process has proven effective. The brands we fund thrive and grow with the support of our investors, consistently meeting their loan obligations. Many of them become long-term partners, further strengthening the ecosystem we're building.

When you invest through our platform, you're not just picking brands at random. You're investing in high-growth, carefully vetted businesses with strong leadership, clear goals and excellent market positioning. With our rigorous scoring process, personal financial investment, and unmatched investor protections, we give you the peace of mind to invest with confidence.

Our goal is simple: to back the best, drive long-term growth, and build success together.