TLDR:
- Zack Ellison from Applied Real Intelligence discusses the importance of market and industry analysis in evaluating industries for venture lending.
- Market and industry analysis are crucial in determining the potential success of a venture loan.
In the ninth installment of his series on venture debt, Zack Ellison from Applied Real Intelligence delves into the world of market and industry analysis. Ellison emphasizes the significance of these analyses in evaluating nascent and high-growth industries for venture lending.
Understanding the market and industry dynamics is essential for venture lenders to make informed decisions about potential loans. Ellison introduces the concept of PEST analysis, which stands for Political, Economic, Social, and Technological factors. By considering these elements, lenders can gain valuable insights into the potential risks and opportunities associated with a particular industry.
Ellison also highlights the importance of conducting thorough due diligence when analyzing industries. This includes assessing the competitive landscape, identifying key players, and understanding the potential for growth and innovation within a given market.
Overall, Ellison’s insights shed light on the complexity of analyzing markets and industries in the context of venture lending. By taking a comprehensive approach to evaluating these factors, venture lenders can improve their chances of making successful investment decisions.
