Industries

Sector depth determines conviction.

Surface-level analysis collapses under pressure. Real investment decisions require a granular understanding of how specific sectors generate value, absorb risk and respond to external shocks. ​ Each sector demands its own valuation lens and distinct analytical frameworks.

Sarron Ventures focuses on four verticals where precision matters: Technology & SaaS, Life Sciences & Healthcare, Consumer & Luxury and Financial Services.

Technology & SaaS

Valuing the intangible.

Revenue quality separates the durable from the disposable. We assess recurring revenue composition, cohort behaviour, churn dynamics and the true cost of customer acquisition.

Our diligence examines:

  • Revenue concentration: percentage derived from top 10 customers, contract tenure, renewal risk exposure
  • Net revenue retention: cohort-level expansion versus contraction, upgrade patterns, downgrade triggers
  • Customer acquisition economics: payback periods by channel, lifetime value assumptions, hidden subsidy costs
  • Churn mechanics: logo churn versus revenue churn, early-stage attrition signals, competitive displacement patterns
  • Product moats: technical differentiation, switching costs, integration depth, proprietary data advantages
  • Technical debt: architecture scalability, security vulnerabilities, dependency risks, maintenance burden

Sarron Ventures valuation focus:

  • ARR quality adjustments for low-tenure or high-risk contracts
  • Growth efficiency metrics: Rule of 40, CAC payback, sales efficiency ratios
  • Scenario modelling for different churn and expansion rate combinations

Life Sciences & Healthcare

Clinical risk meets commercial truth.

Regulatory pathways determine timelines; reimbursement landscapes determine economics. We navigate the complex intersection of clinical efficacy, regulatory approval probabilities and payer willingness to fund.

Clinical and regulatory assessment:

  • Trial design robustness: endpoint selection, patient population definition, comparator appropriateness
  • Approval probability: phase success rates, regulatory precedent, advisory committee positioning ​
  • Intellectual property: patent expiry timelines, freedom-to-operate analysis, litigation exposure ​
  • Manufacturing risk: supply chain concentration, process validation, scale-up feasibility ​
  • Regulatory pathway clarity: orphan designation, fast-track status, conditional approval risks

Commercial viability analysis:

  • Market access strategy: pricing strategy by market, reimbursement pathway complexity, payer negotiation leverage ​
  • Competitive landscape: standard of care positioning, pipeline threats, biosimilar risk timelines ​
  • Key opinion leader mapping: prescriber influence networks, adoption barriers, clinical champion strength ​
  • Real-world adoption curves: hospital formulary dynamics, treatment protocol inertia, evidence generation requirements

Consumer & Luxury

Brand equity quantified.

Heritage is not a valuation multiple. Sarron Ventures distinguishes fleeting trends from enduring positioning, examining brand health through concrete metrics rather than sentiment or gut feeling.

Brand and customer economics:

  • Repeat purchase behaviour: cohort retention rates, purchase frequency evolution, basket size trends ​
  • Customer lifetime value: acquisition cost recovery periods, margin progression over time, dormancy rates ​
  • Brand health indicators: unaided awareness, consideration rates, Net Promoter Score trajectories ​
  • Pricing power: promotional dependency, markdown rates, full-price sell-through percentages ​
  • Channel economics: direct versus wholesale margin profiles, return rates by channel, fulfilment costs

Operational and supply chain diligence:

  • Manufacturing concentration: single-source dependencies, quality control protocols, capacity constraints ​
  • Inventory management: stock turn rates, obsolescence risk, working capital intensity ​
  • Distribution strategy: flagship economics versus wholesale partnerships, e-commerce fulfilment efficiency ​
  • Brand dilution risk: expansion pace sustainability, product line coherence, licensing exposure

Luxury-specific factors:

  • Provenance authenticity: craftsmanship verification, heritage consistency, scarcity management ​
  • Ultra-high-net-worth demand resilience: customer concentration, wealth correlation, geographic dependency

Financial Services

The plumbing of capital.

Infrastructure businesses in finance are valued on regulatory clarity, customer stickiness and switching difficulty. At Sarron Ventures, we focus on fintech platforms, asset management technology, wealth infrastructure and regulatory technology.

Infrastructure and regulatory assessment:

  • Regulatory capital requirements: minimum thresholds, buffer adequacy, capital event triggers
  • Licence portfolio: jurisdiction coverage, regulatory relationship quality, compliance burden costs
  • Operational resilience: system uptime requirements, disaster recovery protocols, cyber security maturity
  • Data governance: privacy compliance, cross-border data flow restrictions, breach exposure risk

Revenue and customer dynamics:

  • Revenue concentration: top client dependency, sector concentration, counterparty credit risk
  • Client attrition patterns: churn by segment, switching triggers, competitor displacement dynamics
  • Fee structure sustainability: regulatory scrutiny exposure, competitive pressure, unbundling risk
  • Embedded distribution strength: integration depth, switching costs, contract renewal mechanics

Platform economics:

  • Unit economics by product line: contribution margins, cross-subsidisation, scalability thresholds
  • Technology stack: legacy system risk, modernisation roadmap credibility, vendor dependencies
  • Network effects: liquidity provision, two-sided marketplace dynamics, critical mass achievement