Method

How we work.

We look for large, measurable gaps between what exists and what is attainable, where removing one important constraint could close enough of the gap to support a company of its own.

How a venture happens
A magnifying glass over a page of equations01

Diagnose

  1. 01

    Notice

    We notice a shortfall.

  2. 02

    Measure

    We measure it.

  3. 03

    Work out what's attainable

    We work out what's attainable, and state exactly what that benchmark assumes.

Two gloved hands crossing sabres against a plain sky02

Challenge

  1. 04

    Find the constraint

    We look for the constraint behind the gap.

  2. 05

    Invite challenge

    We invite experts to attack the analysis before we build anything.

Laboratory glassware on a dark bench03

Test

  1. 06

    Design the test

    We design a test that could prove the analysis wrong.

  2. 07

    Bring in the founding leader

    A founding leader joins before or during the test.

  3. 08

    Run it

    We run the test.

Light falling through an open doorway into a dark room04

Decide

  1. 09

    Decide

    We decide whether a company should exist.

  2. 10

    Spin it out

    If it should, we spin it out with its own leader and its own funding.

The four tests

No fixed industry. The method is the specialty.

We choose a venture by four tests.

  • A precision dial gauge
    01

    Measurable

    The shortfall can be measured.

  • An hourglass running in the dark
    02

    Costly

    It costs people something real.

  • A padlock holding a chain closed
    03

    Removable

    There is a constraint we can remove that would close a large part of it.

  • Two people shaking hands
    04

    Paid for

    There is a credible customer or payer for the result. If the first three hold but not the fourth, we publish what we found and move on.

Principles
  1. 01

    No analysis, no company.

  2. 02

    Before writing code, talk to people who live with the problem until new conversations stop changing our picture of it.

  3. 03

    Invite experts to attack the analysis before we build.

  4. 04

    One venture at a time: we start the next when the last has its own leader, its own funding and its own momentum.

  5. 05

    Stop early and say why.

Manifesto
How ventures are named

Sophisticates → Venture 1, Venture 2, Venture 3.

Every venture has its own name and identity, with one line underneath: "A Sophisticates company." The parent name never goes inside a venture name.