Venture Capitalist Business Screening Factors

849
46649

There are many screening factors investors consider before funding a new or growing business. It is helpful for any company to not only plan with these to increase the chances of success, but also to communicate them to investors so that the value is understood by them during their assessment. In this article, we will present these consideration points so that you are more aware of the process.

Management & Market Test

During initial screens, many firms analyze a company from two main elements. The first element is often called the management test. This reviews the current management in place to review the previous background, experience and overall capability of the manager and his or her potential to construct a successful business. The second element is the market test. During this, the venture capitalist may review the potential market size to determine if the business has profitability potential to reach the desired exit strategy.

For instance, a new biotechnology drug that treats a rare disease may not have a large enough addressable market to reach desired returns. However, a software that simplifies human resources may be used by any business with employees and a computer. The key is focusing on a market that can reach a large enough exit strategy, such that the venture capital firm receives a suitable return on investment. These two elements serve as hurdles for many companies, but they are not the only screening factors that investors use. Other screening factors that exist include:

Customers

Who will be/are the customers and does the business rely on just a few key customers?

Will the customer base be sufficient to reach desired profitability levels?

Does the current management know how to target and sell to these customers?

The Product

How good is the product that is being sold, can the investor test it?

What do potential customers think of the product advantages or disadvantages through focus groups and surveys?

How does the product get sold through distribution channels?

Competition

Who are the competitors and how can the business generate a sustainable competitive advantage?

Competitors are anyone that your customer may go to to receive the same utility, what are all of these options?

Who are all of the players in this industry, including both upstream and downstream?

Partner

What other companies must the business deal with, such as key suppliers, development partners, and firms with cooperative agreements?

If this business and partners has operating history, what is the impression of the prospective investment by the partners?

Money

Has the business obtained prior investment, if so, what was the outcome?

What are the start-up expenses and/or funding being used for and how long will it last?

Venture groups often make their own projections, but does management understand how the company will grow?

Risk Mitigation

Is this technology infringing on someone else’s patent?

Are there any active or potential lawsuits against the business?

Are the firms’ incorporation documents in good order?

849 COMMENTS

  1. clock movement

    Get the top quality deals for wholesale clock movement kits currently available for you and for fast deliver and plus at a reasonabe value for today only!

  2. https://bjdkgfsfhidhgvudbfjeguehfwhsfug.com
    Mkfdkfjwsldjeifgheifnkehgjr
    vndkfhsjfodkfc;sjgjdgokrpgkrp
    bndljgoedghoekfpegorig
    fihfowhfiehfoejogtjrir
    Yndkfvhdjkfhke nkfnslkfn klfnklf
    Oljgvkdfkndjvbgdjffsjdnkjdhf

    Nkfhofjeojfoegoero ogeoegfeougeihigoohge igjeigheiogheiogheih giehdgoiehifoehgioheighe hfioeehfieohgeiodgnei hioehgioehfdkhgioehgi eodghioedhgieghiehgeuo
    Nihdigheifjojfieui iihfishfiwsfhiwhfowhfh hfsdfhkdcndjkfhe klchsiofhwifhdvjdnj hkfhsfhifheuhguegheflkhe
    Yfhsfheifhei hfhdfiehfiejfk fjeogjeogj ojgoedjodjvsclksfhszghLhekjb; ;dh jdjvndkjdfjsofjsofjosjfi fojsjdoskfsjfodgjdsghoi sdjfpfgspegjsodjvdhvgisd
    Mfjefjojgidhvshg ihidhgiodhgirhgir hioihgdioghrigrigh ihgiogherihgirodvdks jsdjfsopejfovgjdksjosj joesjfoesjfsj;ifsjg
    Ndjsfhjifekfhekdghior highdiofhidogheioghei gijhgoiehgiehgieh jfiheigheihgioe

  3. read more

    Buy the top quality deals for clock movements wholesale that’s available for you and for fast deliver and plus at a reasonabe value for today only!

  4. click Here

    Contract us here for the best professional, licensed and bonded tenant improvements construction that are available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  5. project management

    Contact us now for a professional, licensed and bonded steel building contractors currently available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  6. visit website here

    Contract us here for top quality professional, licensed and bonded metal building erection that are available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  7. read more

    Get in contract here for a professional, licensed and bonded metal building contractors that is available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  8. metal building construction

    Contact us now for a professional, licensed and bonded contractor that’s available to get started on your construction projects and ready to get going at a top quality. Ask for a proposal today!

  9. tenant improvement contractor

    Get in contract here for the best professional, licensed and bonded tenant improvements construction that is available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  10. prefab metal buildings

    Get in contract here for top quality professional, licensed and bonded Industrial Contractors that are available to get started on your construction projects and ready to get going at a top quality. Ask for a proposal today!

  11. construction management

    Get in contract here for a professional, licensed and bonded steel warehouses that’s available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  12. general steel buildings

    Contact us now for the best professional, licensed and bonded building contractor California that are available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  13. design steel buildings

    Get in contract here for the best professional, licensed and bonded metal building erectors that’s available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  14. commercial metal buildings

    Get in contract here for the best professional, licensed and bonded general contractor that’s available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  15. construction management experts

    Contact us now for the best professional, licensed and bonded tenant improvements construction that are available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  16. click Here

    Contract us here for top quality professional, licensed and bonded tenant improvements construction that’s available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  17. Contractor

    Contact us now for top quality professional, licensed and bonded Construction Management currently available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  18. construction management

    Get in contract here for a professional, licensed and bonded design build contractors that are available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  19. construction videos

    Contract us here for the best professional, licensed and bonded Tenant Improvement that is available to get started on your construction projects and ready to get going with the top quality. Ask for a proposal today!

  20. Contractor

    Contract us here for a professional, licensed and bonded general contractor services that are available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  21. tenant improvement contractor

    Contract us here for the best professional, licensed and bonded metal church buildings currently available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  22. TI construction

    Contact us now for top quality professional, licensed and bonded tenant improvements contractor that is available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  23. learn more here

    Get in contract here for the best professional, licensed and bonded design build firms that’s available to get started on your construction projects and ready to get going at a top quality. Ask for a proposal today!

  24. metal building kits

    Get in contract here for a professional, licensed and bonded design build firms that is available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  25. project management

    Contact us now for a professional, licensed and bonded tenant improvements construction that is available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  26. general contractors

    Contract us here for a professional, licensed and bonded tenant improvement contractor that are available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  27. church building construction

    Contract us here for the best professional, licensed and bonded steel building contractors that’s available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  28. best general contractor

    Contract us here for top quality professional, licensed and bonded metal building construction currently available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  29. tenant improvement contractor

    Get in contract here for top quality professional, licensed and bonded metal church buildings that is available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  30. metal building kits

    Contract us here for the best professional, licensed and bonded Construction Management that’s available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  31. metal building construction

    Contact us now for the best professional, licensed and bonded prefabricated metal buildings that’s available to get started on your construction projects and ready to get going at a top quality. Ask for a proposal today!

  32. builder

    Contact us now for top quality professional, licensed and bonded design build construction firms that is available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  33. metal construction builder

    Get in contract here for top quality professional, licensed and bonded metal building contractors that are available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  34. large construction projects

    Contact us now for top quality professional, licensed and bonded design build contractors that are available to get started on your construction projects and ready to get going with the top quality. Ask for a proposal today!

  35. best general contractor

    Get in contract here for the best professional, licensed and bonded Construction Management currently available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  36. learn more here

    Contract us here for a professional, licensed and bonded steel building contractors that are available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  37. steel building builder

    Contact us now for top quality professional, licensed and bonded Industrial Contractors that’s available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  38. metal building construction

    Contact us now for top quality professional, licensed and bonded building erectors that’s available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  39. tenant improvement contractor

    Contract us here for the best professional, licensed and bonded metal building erection that’s available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  40. Enviromental construction

    Contract us here for a professional, licensed and bonded general contractor that is available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  41. construction management experts

    Contact us now for a professional, licensed and bonded metal church buildings currently available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  42. design builder construction

    Contract us here for a professional, licensed and bonded ti construction that’s available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  43. california metal buildings

    Get in contract here for a professional, licensed and bonded metal church buildings contractor that’s available to get started on your construction projects and ready for your job with the top quality. Ask for a proposal today!

  44. project management

    Contract us here for top quality professional, licensed and bonded metal building erectors that is available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  45. construction management experts

    Get in contract here for a professional, licensed and bonded metal church buildings contractor that is available to get started on your construction projects and ready to get going with the top quality. Ask for a proposal today!

  46. design steel buildings

    Contact us now for a professional, licensed and bonded design build contractors that’s available to get started on your construction projects and ready for your job with the top quality. Ask for a proposal today!

  47. TI construction

    Contract us here for a professional, licensed and bonded building contractor California that are available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  48. industrial construction

    Contract us here for top quality professional, licensed and bonded steel warehouse construction that are available to get started on your construction projects and ready for your job with the top quality. Ask for a proposal today!

  49. design metal buildings

    Contract us here for the best professional, licensed and bonded facility construction currently available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  50. best contractor

    Get in contract here for a professional, licensed and bonded tenant improvements construction currently available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  51. steel building suppliers

    Get in contract here for the best professional, licensed and bonded contractor that’s available to get started on your construction projects and ready to get going at a top quality. Ask for a proposal today!

  52. church building contractors

    Contract us here for top quality professional, licensed and bonded general contractor currently available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  53. construction management experts

    Contract us here for top quality professional, licensed and bonded metal building erection that is available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  54. read more

    Get in contract here for top quality professional, licensed and bonded commercial building contractor currently available to get started on your construction projects and ready for your job at a top quality. Ask for a proposal today!

  55. best steel building contractor

    Contact us now for a professional, licensed and bonded design build firms currently available to get started on your construction projects and ready to get going with the top quality. Ask for a proposal today!

  56. how to build a metal building

    Contract us here for a professional, licensed and bonded metal church buildings currently available to get started on your construction projects and ready to get going at a best price. Ask for a proposal today!

  57. general contractors

    Contact us now for a professional, licensed and bonded metal church buildings that are available to get started on your construction projects and ready for your job at a best price. Ask for a proposal today!

  58. church building construction

    Contract us here for top quality professional, licensed and bonded metal building erection that are available to get started on your construction projects and ready to get going reasonable pricing. Ask for a proposal today!

  59. industrial construction

    Contact us now for a professional, licensed and bonded metal building erectors currently available to get started on your construction projects and ready to get going with the top quality. Ask for a proposal today!

  60. small construction projects

    Contract us here for the best professional, licensed and bonded tenant improvements construction that is available to get started on your construction projects and ready for your job reasonable pricing. Ask for a proposal today!

  61. my site

    Find the top quality deals for water damage restoration that are available for you and for fast deliver and plus at a great value for today only!

  62. Bonuses

    Get the top quality deals for fire restoration currently available for you and ready to s and at a reasonabe value for today only!

  63. water damage

    Buy the top quality deals for fire restoration services that are available for you and for fast deliver and plus at a great value for today only!

  64. see it here

    Find the top quality deals for insurance for lodges that are available for you and for fast deliver and at a great value for today only!

  65. see here

    Buy the top deals for motel insurance brokers that’s available for you and ready to s and plus at a reasonabe value for today only!

  66. this website

    Find the top quality deals for bed and breakfast insurance companies that are available for you and for fast deliver and at a good value for today only!

  67. Homepage

    Get amazing deals for bed and breakfast insurance companies that are available for you and ready to s and at a good value for today only!

  68. imp source

    Get amazing deals for insurance for bed and breakfast that’s available for you and ready to s and plus at a reasonabe value for today only!

LEAVE A REPLY

Please enter your comment!
Please enter your name here