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Investment criteria...

 

Selected Investment Criteria

Ranking by Business Angels

Ranking by Venture Capitalists

People or entrepreneur

Enthusiasm of the entrepreneur(s)

1

3

Trustworthiness of the entrepreneur(s)

2

1

Expertise of the entrepreneur (s)

4

2

Investor liked entrepreneur(s) upon meeting

5

9

Track record of the entrepreneur(s)

10

8

Market or product

Sales potential of the product/service

3

5

Growth potential of the market

6

6

Quality of the product/service

7

10

Niche market

9

13

Informal competitive protection of the product/service (know-how)

12

14

Nature of competition in the industry

17

16

Overall competitive protection of the product/service

21

11

Formal competitive protection of the product/service (patents)

27

20

Financials used to screen for potential gains

Perceived financial rewards

8

4

Expected rate of return

11

7

High margins for business

15

15

Financials to monitor the operating firm

Low overheads

16

21

Ability to break even without further funding

18

19

Low initial capital expenditures needed (on assets)

19

24

Size of the investment

20

23

Low cost to test the market initially

22

22

Other business attributes (vital to hands-on role)

Possibility of investor's involvement in business development

13

18

Investor's strengths in filling gaps in the business

14

26

Venture is local

23

27

Other business attributes (miscellaneous)

Potential exit routes (liquidity)

24

12

Investor's understanding of the business or industry

24

17

Presence of (potential) co-investors

26

25

The Business Planning Institute, LLC
580 Village Boulevard
West Palm Beach, Florida 33409
Suite 150
561-236-5533 (Office Phone)
561-689-5546 (Fax)
Info@bpiplans.com

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