Investment Criteria
1. The new venture should have a product or service targeted to a very receptive customer group.
2. Market size is important and should be in the $10 million to $100 million range.
3. Growth rates of 30 percent to 60 percent, beginning earlier rather than later.
4. Proprietary products, with intellectually protected properties are more successful than generic products.
5. Competition takes place on strength of differentiation or technological innovation.
6. The competition are relatively passive or less aggressive, permitting the attainment of dominant share in the segment, hopefully in excess of 20 percent.
7. More than one innovative product or service.
8. The venture requires multiple funding in$300000-$1000000 range, related to steps in growth.
9. Offer a clear exit for the venture capitalist in terms of an IPO, retractable shares, etc.
10. The venture has a 10 times return within five years.
11. ROI exceeds 30 percent.
12. A proven integrated management.