Skin in the game
Prove the value. Earn the next commitment.
A proof runs in three consecutive phases, often around 90 days. The duration is set per project. Three workstreams run through every phase.
Product
Choose the workflow, users, baseline and success criteria. Build the first version.
Choose the workflow, users, baseline and success criteria. Build the first version.
Test with real users. Improve the experience and usability.
Evaluate value and adoption. Define the next product scope.
Technical
Check data, architecture, integrations and Backbone fit.
Check data, architecture, integrations and Backbone fit.
Build and test integrations, human controls and administration.
Test repeatability, transferability, operating cost and the rollout path.
Business & partnership
Work out the business case, commitment, risk budget and preliminary partnership principles.
Work out the business case, commitment, risk budget and preliminary partnership principles.
Test commercial demand, unit economics and transferability to a next environment.
Decide to stop, adjust or scale. Fix financing, responsibilities and the partnership.
Skin in the game
Nova’s investment from phase one
A capped contribution of senior time, product work and/or development at risk, agreed before the proof starts. We fix what Nova invests, what is paid in cash, what may become a receivable and when the contribution stops.
A fully paid proof is not a Nova investment simply because Nova works on it. There is no standard free proof and no standard financing promise.
What the last phase decides
- 01Paid development
- 02Part cash, part deferred
- 03Convertible loan
- 04Equity or earn-in
- 05A combination
The business case and the agreements decide the model. The same development contribution is never counted in full as debt and in full as equity.
After the proof
A longer path can follow, from product partnership to venture and possibly buy-and-build expansion. That is a follow-on path, not a second set of proof phases.