Pre-IPO investment thesis

As part of experiential learning focused internship with my platform in SG, a group of Uni students from the US and elsewhere are working together on creating an investment thesis for a few sought after large private tech companies including Anthropic, Revolut, Bytedance, SpaceX and few others.

Not only these companies are growing fast, doing exceptional work in their respective domains but they remain of high interest to many institutional and private client investors.

Challenge with these private equity/venture type assets is lack of adequate information and financial data. Typically the thesis is built using data scattered over multiple news or some specific databases which have some coverage on these. 

Interestingly, quite a bit of that can be readily accessed and analyzed using any commonly used AI chat. Wondering what could be done beyond what these tools will indicate with 4-5 smart interns working together with different academic expertise?

Any ideas or similar experience working with any VC /PE much appreciated.

2 Comments
 

To craft a robust pre-IPO investment thesis for companies like Anthropic, Revolut, Bytedance, and SpaceX, your team of interns can go beyond surface-level AI tools by leveraging a combination of creative research strategies, financial modeling, and qualitative analysis. Here's a structured approach based on the most helpful WSO content:

1. Deep-Dive Research Beyond AI Tools

  • Primary Sources: Encourage interns to analyze press releases, interviews with founders, and investor presentations (if available). These often provide insights into the company's vision, strategy, and market positioning.
  • Secondary Sources: Use specialized databases like PitchBook, CB Insights, or Crunchbase for funding rounds, valuation trends, and competitor analysis.
  • Industry Reports: Access reports from consulting firms (e.g., McKinsey, BCG) or market research firms (e.g., Gartner, IDC) to understand the broader industry landscape and growth drivers.
  • Regulatory Filings: For companies like SpaceX, which may have government contracts, look into public filings or government procurement databases.

2. Collaborative SWOT Analysis

  • Assign each intern to focus on one aspect of the SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each company. For example:
    • Strengths: Analyze competitive advantages like proprietary technology or market share.
    • Weaknesses: Identify risks such as regulatory challenges or reliance on key customers.
    • Opportunities: Explore untapped markets or potential product expansions.
    • Threats: Assess competition, macroeconomic risks, or geopolitical factors.

3. Financial Modeling and Valuation

  • Comparable Company Analysis (Comps): Identify public companies in similar industries and use their valuation multiples (e.g., EV/Revenue, EV/EBITDA) to estimate the target company's valuation.
  • Precedent Transactions: Research recent acquisitions or funding rounds in the same sector to benchmark valuations.
  • DCF Analysis: If revenue or cash flow projections are available, build a discounted cash flow model to estimate intrinsic value.
  • Scenario Analysis: Create best-case, base-case, and worst-case scenarios to account for uncertainties.

4. Qualitative Factors

  • Management Team: Evaluate the experience and track record of the founders and leadership team.
  • Market Trends: Assess how macro trends (e.g., AI adoption for Anthropic, fintech regulation for Revolut) impact the company's growth prospects.
  • Customer Sentiment: Analyze customer reviews, social media sentiment, or app store ratings to gauge product-market fit.

5. Leverage Diverse Academic Expertise

  • Tech Backgrounds: Interns with technical expertise can analyze the company's technology stack, patents, or R&D efforts.
  • Finance Majors: Focus on valuation, financial modeling, and market sizing.
  • Marketing/Strategy Students: Assess branding, go-to-market strategies, and competitive positioning.
  • Policy/Legal Experts: Evaluate regulatory risks and compliance challenges.

6. Creative Approaches

  • Expert Interviews: Reach out to industry professionals, former employees, or analysts for insights.
  • Crowdsourced Data: Use platforms like Reddit, Glassdoor, or LinkedIn to gather anecdotal evidence about company culture, growth, and challenges.
  • Geospatial Analysis: For companies like SpaceX, analyze satellite imagery or launch data to understand operational scale.

7. Presentation and Storytelling

  • Craft a compelling narrative that ties together the quantitative and qualitative findings. Highlight why the company is a strong pre-IPO investment opportunity and address potential risks with mitigation strategies.

By combining these strategies, your team can create a well-rounded investment thesis that goes beyond what AI tools or surface-level research can provide. This approach mirrors the diligence and creativity often seen in top VC/PE firms.

Sources: Advice for summer Asset Management interns, How to Thrive on Your Research Internship, How to be a good S&T Intern, How to get a Hedge Fund Internship, Private Equity vs Venture Capital - Differences and Similarities

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Funniest

Mollitia non nisi minima dolor fugiat esse itaque. Sequi fugit modi quas. Omnis assumenda ipsum quo voluptatem earum pariatur molestiae natus. Ad dolorem voluptas ratione eos voluptas ex.

Itaque eligendi vel facere autem illo qui sed. Aliquid qui officia sint minima. Similique et nostrum quidem qui modi totam officia. Officiis ut commodi occaecati corrupti eveniet nisi non. Quisquam omnis nisi atque perspiciatis. Repellendus officia atque a totam. Porro cupiditate necessitatibus eum.

Et est voluptates voluptatibus rerum occaecati dicta sint nihil. Natus nemo quos eius cum quae assumenda nemo temporibus. Dolorum cupiditate ipsam expedita molestiae laborum voluptas odit. Reprehenderit iure voluptates ab et voluptas consequatur. Molestias consequatur qui blanditiis sed. Reprehenderit accusamus placeat eligendi dolorum. Facilis sit non tempore earum.

Nisi optio maxime soluta rerum sunt minima. Quo est reprehenderit sequi laudantium nisi aut. Accusantium molestias unde odit esse exercitationem voluptatem.

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • Blackstone Group 98.9%
  • Warburg Pincus 98.5%
  • Bain Capital 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • KKR (Kohlberg Kravis Roberts) 99.6%
  • The Riverside Company 99.2%
  • Ardian 98.9%
  • Blackstone Group 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.2%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (97) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (234) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (95) $134
  • 1st Year Analyst (271) $124
  • Intern/Summer Associate (37) $80
  • Intern/Summer Analyst (352) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”