|
Selected Investment Criteria |
Ranking Overall by Business Angels |
Ranking Overall 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 |
3 |
5 |
|
Growth potential of the market |
6 |
6 |
|
Quality of product |
7 |
10 |
|
Niche
market |
9 |
13 |
|
Informal competitive protection of the product (know-how) |
12 |
14 |
|
Nature of competition in the industry |
17 |
16 |
|
Overall competitive protection of the product |
21 |
11 |
|
Formal competitive protection of the product (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) |
|
|
|
Investor's involvement possible (contribute skills) |
13 |
18 |
|
Investor's strengths filling gaps in business |
14 |
26 |
|
Local
venture |
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 |
