1.

Investment Feasibility Assessment

www.atdc.org
Outcome
Identify strengths and weaknesses in your business as compared to a model investment opportunity.

Overview
This assessment identifies the major (not all) criteria that an investor will use to evaluate an investment opportunity in your business. By evaluating your business
against these criteria, you can determine your readiness to pursue outside investment. The criteria can also be used to develop benchmarks for improvement in various
aspects of your business.

Instructions
Step 1: Review the Investment Feasibility Assessment – Criteria Descriptions.

Review the criteria and descriptions on Sheet 2 of this worksheet. For each criterion, choose the description that most closely matches your situation. Mark that
description’s number (1 through 5) on the Scoring Page (Sheet 3 and Sheet 4 of this worksheet). The company and their coach have separate scoring pages.

Step 2: Total Score.

On the Scoring Pages, the points will be automatically totalled for your investment opportunity on the 20 criteria. NOTE: The model, or perfect, investment opportunity
would score a “5” on every criterion, for a total of 100 points.
Step 3: Evaluate your business.

In a comparison of an investment in your business against the model investment opportunity, no score guarantees an investment. A score of less than 4 for any
individual criterion indicates a weakness in the investment opportunity, which requires further consideration. Also, pay attention to any area (management, market,
technology, traction, business model) where your score was less than one-half of the possible points overall. The Analyses on Sheets 3a & 4a provide some additional
information based on the scores that the company received for each criterion.

Step 4: Work with your coach to address challenging areas.

Your coach will independently complete this assessment based upon his/her perspective on your business. Sheet 5 of this worksheet combines the results of the
company and coach score sheets and compares how each criertia was evaluated. Areas of agreement and divergence are highlighted, and the company should discusss
strategies to address any weak areas and identify why there is this difference in scoring.
 2. Criteria and Descriptions

MANAGEMENT

Transferable record of success

Ability and experience to leverage scarce

resources

Appropriate functional and industry experience

Worked together previously

Team is complete
MARKET

Available market well defined and large

Market is growing

Competition has identifiable weaknesses

Customers receptive to early stage companies

Market entry by new competitors is difficult

TECHNOLOGY

Company based on unique or innovative use of

technology

Expertise in place to maintain and expand

technology

Technology is broad

Technology is exclusive to Company

TRACTION

Product/service is ready to sell

Value proposition is quantifiable in customer’s

terms

Customers have validated Company’s value

proposition

BUSINESS MODEL

Business model is attractive and efficient

Multiple exit opportunities exist

Favorable risk/return tradeoff for investors

 2. Criteria and Descriptions

1. Team has limited record of success.

2. One or two team members have significant professional accomplishments.
3. Several members of management have significant professional accomplishments.
4. Several members of management have created wealth for investors.
5. Several members of management have created wealth for investors via a similar business concept.
1. Team can function without executive dining privileges and personal assistants.
2. Entrepreneurial experience limited to internal corporate initiatives.
3. Team has entrepreneurial experience but limited success to date.
4. Several team members have grown a company from zero to over $20M in revenues.
5. Team has grown multiple companies from zero to over $20M in revenues
1. Lots of passion, limited functional or industry experience.
2. Company has identified key hires to provide functional and industry expertise.
3. Team has appropriate functional and industry experience (given its stage).
4. Several members of senior management have significant functional and/or industry experience.
5. All senior team members have significant functional and industry experience.
1. Team is totally new.
2. New team with complementary backgrounds.
3. New team but has worked together, successfully, for several months.
4 CEO has previously worked with one to two key team members.
5. Several members of management have worked together before.
1. Technology-focused team.
2. Key functional leaders in place, no CEO.
3. Key functional leaders and stage-appropriate CEO in place.
4. Exit-ready CEO and key functional leaders in place.
5. Exit ready team in place.
1. <$100M annually.
2. $100M - $500M annually.
3. $500M - $750M annually.
4. $750M - $1B annually.
5. > $1B annually.
1. <10% annually.
2. 10-25% annually.
3. 25-50% annually.
4. 50% - 100% annually.
5. >100% annually.
1. Many strong competitors.
2. No competitors known.
3. Competitors known, with moderate weaknesses in Company’s defined niche.
4. Competitors known, with significant weaknesses in Company’s defined niche.
5. Competitors known and pose limited threat.
1. Customers are conservative and only buy from established players.
2. Customers are historically conservative but open to new players given current market conditions.
3. Several trailblazers exist that will buy from new players to exploit a strategic advantage.
4. Trailblazers exist and majority of remaining customers will adopt upon positive validation of value proposition.
5. Customers are aggressive and frequently buy from early stage companies.
1. Competitors can enter at will.
2. Market entry possible with modest time and capital investment.
3. Market entry restrict by at least one barrier that requires a significant investment of time and capital to overcome.
4. Market entry restrict by several barriers that require a significant investment of time and capital to overcome.
5. Market entry is difficult even for committed and well financed competitors.
1. Technology is well-established.
2. Technology is well-established. Company has identified potentially novel applications.
3. Technology is well-established. Company has identified novel applications.
4. Novel technology platform with significant potential.
5. Novel technology platform that is widely-recognized as state of the art.
1. Company has no relationship with the creators of its technology.
2. Company has informal access to the creators of its technology.
3. Company has formal access to the creators of its technology.
4. Company uses external personnel and employees to support and expand its technology.
5. Company’s technology is supported by internal employees.
1. Technology is applicable to a limited set of applications.
2. With an investment in R&D, technology is applicable to a modest set of applications in several markets.
3. Technology is applicable to a modest set of applications.
4. With an investment in R&D, technology is applicable to a significant set of applications in several markets.
5. Technology is applicable to a significant set of applications in several markets.
1. Company has non-exclusive rights to its technology.
2. Company has exclusive rights to portions of its technology.
3. Company has exclusive rights to its technology subject to certain performance metrics.
4. Company has exclusive rights with the option to own its technology.
5. The Company owns all of its technology.
1. Company’s product/service is just a concept.
2. Customer feedback has shaped product/service specifications.
3. Concept has been reduced to a prototype.
4. Customers are using/testing pre-commercial versions of Company’s product/service.
5. Product/service is ready to sell.
1. No target customers.
2. Target customers know, pain is unknown.
3. Company has identified target customers with significant pain.
4. Value proposition is compelling but only in qualitative terms.
5. Value proposition is compelling and quantifiable.
1. Many leads, few qualified prospects.
2. Significant pipeline of qualified prospects.
3. Customers are sampling but not yet buying.
4. Customers have verbally communicated intent to purchase.
5. Company is generating revenues through the delivery of its value proposition.

1. Lumpy revenues, low margins, capital intensive.

2. Profitable but difficult to scale.
3. Profitable and scalable.
4. Highly profitable, scalable, but capital intensive.
5. Highly profitable and scalable.
1. Acquisition or IPO is unlikely.
2. IPO is unlikely and pool of potential acquirers is limited.
3. Several potential acquirers identified.
4. Exit via acquisition probable; IPO is possible.
5. Exit via acquisition or IPO.
1. Significant capital investment required. Investors likely to achieve modest returns even under best case conditions.
2. Significant capital investment required. Investors will probably receive a return of their capital but upside will be modest.
3. Modest capital required. Investors equally likely to achieve a homerun or total loss of capital.
4. Modest capital required. Potential to become a homerun with a return of capital likely under most conditions.
5. Potential homerun opportunity. Investors will make money under most conditions.
 3. Company Scoring Page

MANAGEMENT 1 2 3 4 5 Total STATUS

Transferable record of success. 0 0 Next to each question, place an '1' underneath the score (1 -5) for
Ability and experience to leverage scarce resources. 0 0 where you believe your company is
Appropriate functional and industry experience. 0 0
Worked together previously. 0 0
Team is complete. 0 0
Please ensure that you only enter ONE score (1 - 5) for each row
MARKET 1 2 3 4 5
item, otherwise the total score will not be reflected correctly. The
Available market well defined and large. 0 0 STATUS column will show a red X if more than one score is entered.
Market is growing. 0 0
Competition has identifiable weaknesses. 0 0
Customers receptive to early stage companies. 0 0 LEGEND
Market entry by new competitors is difficult. 0 0 Need to focus here
TECHNOLOGY 1 2 3 4 5 Not so good
Company based on unique or innovative use of technology. 0 0 Medium
Expertise in place to maintain and expand technology. 0 0 Good
Technology is broad. 0 0 Great!!
Technology is exclusive to Company. 0 0
TRACTION 1 2 3 4 5
Product/service is ready to sell. 0 0
Value proposition is quantifiable in customers’ terms. 0 0 TOTAL SCORE
Customers have validated Company’s value proposition. 0 0
BUSINESS MODEL
Business model is attractive and efficient.
1 2 3 4 5
0 0 0
Multiple exit opportunities exist. 0 0
Favorable risk/return tradeoff for investors. 0 0
 3a. Analysis of Company Score

MANAGEMENT REMEDIES & COMMENTS

Transferable record of success. No Company Score Recorded Yet

Ability and experience to leverage scarce resources. No Company Score Recorded Yet

Appropriate functional and industry experience. No Company Score Recorded Yet

Worked together previously. No Company Score Recorded Yet

Team is complete. No Company Score Recorded Yet

MARKET

Available market well defined and large. No Company Score Recorded Yet

Market is growing. No Company Score Recorded Yet

Competition has identifiable weaknesses. No Company Score Recorded Yet

Customers receptive to early stage companies. No Company Score Recorded Yet

Market entry by new competitors is difficult. No Company Score Recorded Yet

TECHNOLOGY

Company based on unique or innovative use of technology. No Company Score Recorded Yet

Expertise in place to maintain and expand technology. No Company Score Recorded Yet

Technology is broad. No Company Score Recorded Yet

Technology is exclusive to Company. No Company Score Recorded Yet

TRACTION

Product/service is ready to sell. No Company Score Recorded Yet

Value proposition is quantifiable in customers’ terms. No Company Score Recorded Yet

Customers have validated Company’s value proposition. No Company Score Recorded Yet

BUSINESS MODEL

Business model is attractive and efficient. No Company Score Recorded Yet

Multiple exit opportunities exist. No Company Score Recorded Yet

Favorable risk/return tradeoff for investors. No Company Score Recorded Yet

 4. Coach Scoring Page

MANAGEMENT 1 2 3 4 5 Total STATUS

Transferable record of success. 0 0 Next to each question, place an '1' underneath the score (1 -5) for
Ability and experience to leverage scarce resources. 0 0 where you believe your company is
Appropriate functional and industry experience. 0 0
Worked together previously. 0 0
Team is complete. 0 0
Please ensure that you only enter ONE score (1 - 5) for each row
MARKET 1 2 3 4 5
item, otherwise the total score will not be reflected correctly. The
Available market well defined and large. 0 0 STATUS column will show a red X if more than one score is entered.
Market is growing. 0 0
Competition has identifiable weaknesses. 0 0
Customers receptive to early stage companies. 0 0 LEGEND
Market entry by new competitors is difficult. 0 0 Need to focus here
TECHNOLOGY 1 2 3 4 5 Not so good
Company based on unique or innovative use of technology. 0 0 Medium
Expertise in place to maintain and expand technology. 0 0 Good
Technology is broad. 0 0 Great!!
Technology is exclusive to Company. 0 0
TRACTION 1 2 3 4 5
Product/service is ready to sell. 0 0
Value proposition is quantifiable in customers’ terms. 0 0 TOTAL SCORE
Customers have validated Company’s value proposition. 0 0
BUSINESS MODEL
Business model is attractive and efficient.
1 2 3 4 5
0 0 0
Multiple exit opportunities exist. 0 0
Favorable risk/return tradeoff for investors. 0 0
 4a. Analysis of Coach Score

MANAGEMENT REMEDIES & COMMENTS

Transferable record of success. No Coach Score Recorded Yet

Ability and experience to leverage scarce resources. No Coach Score Recorded Yet

Appropriate functional and industry experience. No Coach Score Recorded Yet

Worked together previously. No Coach Score Recorded Yet

Team is complete. No Coach Score Recorded Yet

MARKET

Available market well defined and large. No Coach Score Recorded Yet

Market is growing. No Coach Score Recorded Yet

Competition has identifiable weaknesses. No Coach Score Recorded Yet

Customers receptive to early stage companies. No Coach Score Recorded Yet

Market entry by new competitors is difficult. No Coach Score Recorded Yet

TECHNOLOGY

Company based on unique or innovative use of technology. No Coach Score Recorded Yet

Expertise in place to maintain and expand technology. No Coach Score Recorded Yet

Technology is broad. No Coach Score Recorded Yet

Technology is exclusive to Company. No Coach Score Recorded Yet

TRACTION

Product/service is ready to sell. No Coach Score Recorded Yet

Value proposition is quantifiable in customers’ terms. No Coach Score Recorded Yet

Customers have validated Company’s value proposition. No Coach Score Recorded Yet

BUSINESS MODEL

Business model is attractive and efficient. No Coach Score Recorded Yet

Multiple exit opportunities exist. No Coach Score Recorded Yet

Favorable risk/return tradeoff for investors. No Coach Score Recorded Yet

& COMMENTS
 5. Company vs. Coach

Company Coach Status

MANAGEMENT
Transferable record of success. 0 0 0
Ability and experience to leverage scarce resources. 0 0 0
Appropriate functional and industry experience. 0 0 0
Worked together previously. 0 0 0
Team is complete. 0 0 0
MARKET
Available market well defined and large. 0 0 0
Market is growing. 0 0 0
Competition has identifiable weaknesses. 0 0 0
Customers receptive to early stage companies. 0 0 0
0 The purpose of this sheet is to evaluate those areas where there are
Market entry by new competitors is difficult. 0 0
sizeable (2 or greater) differences between where the company feels they
TECHNOLOGY
are and where their coach feels the company is. Ideally the status should
Company based on unique or innovative use of technology. 0 0 0
indicate a green check. The sections with a red X should more closely
Expertise in place to maintain and expand technology. 0 0 0
reviewed and the Venture Catalyst/Coach should be consulted
Technology is broad. 0 0 0
Technology is exclusive to Company. 0 0 0
TRACTION
Product/service is ready to sell. 0 0 0
Value proposition is quantifiable in customers’ terms. 0 0 0
Customers have validated Company’s value proposition. 0 0 0
BUSINESS MODEL
Business model is attractive and efficient. 0 0 0
Multiple exit opportunities exist. 0 0 0
Favorable risk/return tradeoff for investors. 0 0 0
 Things are Good Responses

MANAGEMENT

Great! This will definitely be an advantage moving forward and you should ensure that you take full advantage of
management team has had. Incorporate those portions that fit well with what you are doing and modify those tha
venture. Ensure that any hard lessons learnt are not repeated and pre-empt problems areas that were encountere
Transferable record of success.
Great! Having this ability and Experience can provide a competitve advantage and it should be a part of the compa
succeed.
Ability and experience to leverage scarce resources.

For a software or other technology company, relevant technical experience is critical to getting a good product ou
have strong technical experience, so it’s important to ask yourself whether you have good technical management
products shipped on time is important. If there is more than one technical member, you need to consider how the
divided/shared. Can founders communicate business "vision" in non-technical terms?
Appropriate functional and industry experience.

Good. Often a startup is formed when several colleagues leave a company because they want to collectively create
are familiar with each other's values, corporate culture gets established quickly and is one that the founding team
entrepreneurs can attract people who have worked for them in the past, that's a good sign. For one thing, it's an e
abilities. Perhaps more important, the trust that typically takes so long to build is there from the beginning.
Worked together previously.

Good. The management team is critical to the company, both operationally and in attracting outside investment.
in filling out the management team after the financing, you can increase valuation and attractiveness to investors
management team beforehand.
Team is complete.
MARKET

Be prepared to provide a thorough definition of your target market. Such a definition should include a description
problem that your product or service solves. Additionally, you should be prepared to define the customer, their be
can be capitalized upon to bring your venture to profitable and sustainable fruition. Your understanding of the ma
market size and demographics should be supported by thorough research through reputable sources such as Gart
associations, government research, and other sources. Investors are primarily interested in investing their money
growing markets. Absent such market characteristics, venture capitalists will probably not be interested. Your un
and penetration dynamics are critical to selling your venture to investors. Perform the necessary research to size
reference those research sources. Additionally, you must determine what portion of the market is realistically ach
aggressive in your assessments, but be prepared to defend your conclusions on your market penetration.

Available market well defined and large.

A demonstrated understanding of the market is critical. Be prepared to discuss the predicted (next five years) rat
segment. Are the markets regional, national, international? The more expansive the market, the more specialized
needed to capitalize on the markets. What factors will drive the market growth, and what is the likelihood that th
Market is growing.

A thorough understanding of the competition and a well constructed plan to compete and exceed is very importan
factors in the market: product performance, reliability, durability, styling, delivery, service, merchandising, price,
will react to changes in the market, and attempt to identify how the competition will react to your entry into the m
competition brings.
Competition has identifiable weaknesses.

It is imperative to know what factors will drive customers to your technology. What are the critical success facto
make his decision? Such factors may include performance, reliability, durability, availability, price, and service. E
relative to the others will determine where management should invest its time and money in the product developm
your product have different market segments, and do the customers in each segment buy for the same reasons? D
buying characteristics which should be considered, such as seasonality, cyclical patterns, or other industry trends

Customers receptive to early stage companies.

How have you determined the barriers, and how will you overcome them? If barriers exist ahead of you, investor
overcome them. Desirably, your product will not only overcome barriers, but will also create further barriers behi
A thorough understanding of the market barriers will help you justify your target market share.
Market entry by new competitors is difficult.
TECHNOLOGY
How unique is it and how sustainable is your position (sustainable competitive advantage)? Does the way in whic
to the customers? Will innovations be necessary to maintain market leadership? Have you planned for these?
Company based on unique or innovative use of technology.

Good. This will be important for the company to protect and expand upon their technology and keep competitors a
Expertise in place to maintain and expand technology.

This is good, but the company should exercise caution here. While there are many potential applications,markets,
should very carefully choose their targets. The company should conduct a strategic review in order to determine w
should be in order to maximize the benefit to the company and the customers that they choose to serve.
Technology is broad.

Good. Investors will require assurance that you have full rights to the technology as a condition to their investme
license, you'll want to make sure the scope of the license is sufficient and that any royalty obligations are reasona
royalties. Is your IP position well protected and defensible? Is it patented, and if so, how long does the patent las
Technology is exclusive to Company.
TRACTION
Is it unique/proprietary? Do you have a strategy for continued innovation? Have you packaged the technology in
your target market?
Product/service is ready to sell.

Good. This will provide focus for the business and should allow you to manage resources and conduct marketing e
Value proposition is quantifiable in customers’ terms.

Great! This puts your company in a good position going forward, but you should constantly engage and refine the
discretionary. If you do not create and continuously reinforce, the value of your company, products, services and
then you put your business at risk.
Customers have validated Company’s value proposition.
BUSINESS MODEL

Good. You should constantly be looking inside and outside of your industry to ensure you are using the best possi
you should not become complacent with a model that works today because it might not be the best model to get t
Business model is attractive and efficient.
Good. This will allow the company the flexibility to consider different options, although the company should consu
leader to seek guidance and feedback on their decision
Multiple exit opportunities exist.

This is good because it will bring many investors to the table, but ensure that you have not over promised and tha
company might not benefit from the success of the business
Favorable risk/return tradeoff for investors.
hat you take full advantage of the previous successes that your
are doing and modify those that would be useful in your current
ms areas that were encountered previously.

t should be a part of the companies overall strategy in order to

al to getting a good product out the door. Generally, founders

e good technical management experience on the team, as getting
, you need to consider how the responsibilities will be
ms?

they want to collectively create something new. Because they

d is one that the founding team is comfortable with. When
od sign. For one thing, it's an endorsement of their leadership
here from the beginning.

attracting outside investment. While outside investors can help

and attractiveness to investors by filling in gaps in the
on should include a description of the problem and the size of the
to define the customer, their behaviors, and how those behaviors
Your understanding of the market and the estimation of the
eputable sources such as Gartner, Forrester, industry or trade
rested in investing their money in large, profitable, and fast-
ably not be interested. Your understanding of the market size
the necessary research to size the market and be prepared to
f the market is realistically achievable for your venture. Be
ur market penetration.

predicted (next five years) rate of growth for the market

he market, the more specialized knowledge and expertise is
d what is the likelihood that these factors will materialize?

te and exceed is very important. Cite the principal competitive

service, merchandising, price, and other factors. Know how you
ll react to your entry into the market and the changes that

at are the critical success factors upon which the customer will
ailability, price, and service. Each factor and its importance
money in the product development phase. In addition, does
nt buy for the same reasons? Does your market have any special
terns, or other industry trends?

rs exist ahead of you, investors will want to see how you will
lso create further barriers behind you as you enter the market.
market share.
antage)? Does the way in which your product is unique MATTER
ave you planned for these?

nology and keep competitors at bay for as long as possible.

potential applications,markets, and customers, the company

review in order to determine what the best course of action
they choose to serve.

as a condition to their investment. If your rights arise from a

royalty obligations are reasonable and in line with market
o, how long does the patent last?

ou packaged the technology into a product or service that fits

urces and conduct marketing effectively.

nstantly engage and refine the value proposition. It is not

mpany, products, services and the people standing behind them

re you are using the best possible model for your business and
not be the best model to get the company to the next level

ugh the company should consult with a mentor/coach/business

ave not over promised and that the original founders of the

MANAGEMENT
Transferable record of success.
Ability and experience to leverage scarce resources.
Appropriate functional and industry experience.
Worked together previously.
Team is complete.
Things can Improve Responses
Many investors base their entire investment decision on the management team behind a venture. Investors expect a well-rounded team of
professionals with experience in every function critical to the business. List past positions and responsibilities that directly relate to the current
position. Outline the companies you worked for, the duties, the successes, the experience gained, and how these skills transfer to your current
position. Industry experience is looked at favorably by investors as they size up your management team. Some investors consider industry
experience an absolute must, but if you lack direct industry experience, build on related and successful experiences from other fields. Describe your
abilities and experiences in previous management positions. The number of years you were in management roles? The number of people you
supervised? For how long? The goal here is to present a track record that predicts future success.
Should be able to leverage scare resources to maximize the impact those resources. In order to optimize the use of resources one must first
understand the goals against which resource use should be optimized.
If you are lacking technical talent, this is an area you’ll need to expand. At many start-ups, management requires that all prospective engineers
take rigorous programming tests – the quantity of technical experience is not as important as the skill and ability. From a management team
perspective, it’s more important to have engineering/technical management experience, and generally that person should be a much better
manager than technologist. However, this may not be important if technology is not required to develop your product or service. If it is important,
you need someone with experience in licensing deals and IP issues.
Often a startup is formed when several colleagues leave a company because they want to collectively create something new. Because they are
familiar with each other's values, corporate culture gets established quickly and is one that the founding team is comfortable with. When
entrepreneurs can attract people who have worked for them in the past, that's a good sign. For one thing, it's an endorsement of their leadership
abilities. Perhaps more important, the trust that typically takes so long to build is there from the beginning.
It is never too soon to get started. The management team is critical to the company, both operationally and in attracting outside investment. While
outside investors can help in filling out the management team after the financing, you can increase valuation and attractiveness to investors by
filling in gaps in the management team beforehand.
MARKET
Available market well defined and large.
Market is growing.
Competition has identifiable weaknesses.
Customers receptive to early stage companies.
Market entry by new competitors is difficult.
Obviously, the lack of a clearly defined market will diminish your chances for success in both the short run and the long run. In the short run, you
will be unable to raise capital and may damage your reputation with the investment community. In the long run, your venture will most likely not
be successful. You should spend more time researching markets that your technology may enhance. Consider other applications/markets to which
your technology may be adapted. Limited market size limits the potential revenue and profits to be generated by your venture. Even dominant
penetration in a lesser market may not allow you to generate sufficient returns for your investors. However, investors are strategic, and your
ability to demonstrate to the investors that you really know your market (although not as large as hoped) and how to tap its potential may get their
attention. They may be interested in smaller markets if they are experienced in the market and have established connections within the market that
may enable them to increase your penetration of the market. Additionally, strategic investors who already operate ventures within your market
may appreciate what your product can do for the market (including increasing the size of the market). Research the investment sources to
determine if there may be more strategic investors for your venture. Finally, consider whether there are other, larger markets that may benefit
from your product or service.
In a mature or declining market, your product or service must be an improvement or replacement for what is already available. Your key is to
realistically demonstrate that you understand the market and how your offering changes the dynamics of this market. You must demonstrate why
customers will abandon their current product in favor of your offering. What will be your competitive factors that will drive your success? Price?
Service? Quality? Innovation? Reliability? Also, have others tried to penetrate this market, and what were their results?
It will be difficult to raise money without a solid understanding of the market and its participants. One of the greatest temptations in the
development of the business plan is to overstate your own strengths and to understate the competition. This can be self-defeating, since you base
the actions on the directions charted in the business plan. Moreover, prospective investors are unlikely to back an entrepreneur who lacks a
realistic view of the competition. Show how the competition could deter your plans and how the venture can be adaptable to meet the changing
environment in these situations.
Investment of valuable management resources (including time and money) is largely dependent on management's understanding of the customers'
buying decisions. Research others in your market and determine what their key success factors are. Their knowledge of the customer should be
evident. Ensure that your research provides you with a clear understanding of what drives the customers' purchase decisions, considering
qualitative factors such as performance, quality, reliability, durability, and service and quantitative factors such as price and product availability.
Investors will quickly conclude that a management team unfamiliar with the market barriers to entry cannot predict the amount of funding
necessary to achieve success in the market.
TECHNOLOGY
Company based on unique or innovative use of technology. What is your competitive advantage? Are those competitive advantages sustainable?

It is important for the company to protect and expand upon their technology and keep competitors at bay for as long as possible. Find a way to
Expertise in place to maintain and expand technology. ensure that the company is in charge of the technology that forms the core of the business because without this is will be difficult to create any
significant barriers to entry and your company might find itself losing market share to a competitor.

The company should spend some time and resources to ensure that alternative applications and uses for your product/services have been
Technology is broad. considered. Many times it will be one of these alternatives that find traction in the market place and it allows the company to establish themselves
and still be able to offer the orginal concept if the opportunity presents itself.

Without rights to use the technology, you can't move forward or expect to receive any outside investment. If a current or former employer or
Technology is exclusive to Company. anyone else owns the technology, you need to negotiate for the rights to the technology by assignment, license, or otherwise. The scope of the
license needs to be sufficient to achieve your goal, and any royalty obligations should be reasonable and in line with market royalties.

TRACTION

How long and how much money will it take to develop? What are the risks that you are not able to develop the technology as planned? Are there
Product/service is ready to sell.
others (competitors) developing similar technologies, and if so, how close are they to beating you?

A true value proposition is quantifiable with hard, tangible, grounded numbers framed within financial metrics CFOs quickly understand and use to
Value proposition is quantifiable in customers’ terms.
make decisions. Of course, all CFOs are not the same, and targeted analysis and perspectives will need to be shown around particular CFOs’ needs.

Value ultimately drives the decisions companies make when evaluating different products, services and bundled solution options, including internal
Customers have validated Company’s value proposition. options. The value of a product or service is the customers expectations of quality in relation to the amount paid for it and it is important that you
have some sort of indication from your target customers that validates the value you believe your product/service has.

BUSINESS MODEL

You should consult with industry experts and benchmarks against other players in your industry to determine what business model is most suitable.
You should also look outside of your industry to determine if there is a model that would work well for your business and might even provide a
Business model is attractive and efficient.
competitive edge. Once a suitable model is found, do not become complacent but rather you should continuously evaluate if the model is working
and to determine if it will get the business to the next level.

You should consider if there are alternative exit opportunities. This will provide you with some flexibility and the ablity to make an exit decision that
Multiple exit opportunities exist.
is right for you and for the business.

This might it difficult to raise sufficient capital to invest and grow the business and you should determine if there are any means to make the
Favorable risk/return tradeoff for investors. investment more favorable to investors while at the same time ensuring that the original founders are still able to benefit from any succes that the
business will have.
well-rounded team of
ectly relate to the current
transfer to your current
ors consider industry
om other fields. Describe your
number of people you

sources one must first

t all prospective engineers

m a management team
ould be a much better
or service. If it is important,

g new. Because they are

ortable with. When
rsement of their leadership

ng outside investment. While

activeness to investors by
g run. In the short run, you
venture will most likely not
pplications/markets to which
venture. Even dominant
are strategic, and your
tap its potential may get their
ections within the market that
ntures within your market
nvestment sources to
markets that may benefit

available. Your key is to

You must demonstrate why
drive your success? Price?
ults?

temptations in the
elf-defeating, since you base
repreneur who lacks a
able to meet the changing

derstanding of the customers'

of the customer should be
ecisions, considering
ce and product availability.

he amount of funding
 s possible. Find a way to
be difficult to create any

/services have been

pany to establish themselves

t or former employer or
herwise. The scope of the
arket royalties.

logy as planned? Are there

uickly understand and use to

ound particular CFOs’ needs.

on options, including internal

and it is important that you
.

siness model is most suitable.

nd might even provide a
ate if the model is working

y to make an exit decision that

any means to make the

efit from any succes that the