Capital seekers are often asking me how it is that we derive the criteria that we are asking for them to provide on their data sheets. I’ll tell you, it goes back about 25 years for me in the business. There is something that we call the three-minute review. And this is a situation, if you can picture, capital providers are sitting there looking at deal after deal after deal. Eventually, you develop a strategy. You’re looking for key points in a business plan to decide if it’s going in the trash or if it’s going in the pile to take another look at later. And here’s how it works.
Basically, and not in this particular order, but we’re looking at these things. The number or amount of money needed. One of the primary concerns. Can we provide that amount of money? Is it within our pervue? Is that the amount we typically invest in?
Secondly, what stage is the company in? A lot of companies, right now especially in this economy, are taking preference if they are in a later stage versus a start-up, although there are plenty of good ideas getting funded out there.
The industry, very, very important. There are shifts in the industry from time to time. High tech may be in favor at one point, medical may be in favor at another point, and you may find right now that just plain bread and butter industries, like consumer products and manufacturing, are in favor. And look at the business description as well. What’s this business about in general? Then, I’m looking at the company background. Where did this concept come from? How is it developed? How did it end up in the space that they’re in?
Probably one of the most important things, and I think Ken Honeyman would agree with me, and Mark Bass, as well the management team, I can’t tell you how many of our investors go straight to the management team once they've determine what business they’re looking at.
Now, the product or service that you're providing is another key factor. Then, we look at the market data that goes with that. And remember, these are quick looks, so we’re scanning this. Technology and the viability of that technology, have we been hearing about this technology? Is it a buzz word? Is it something we see a lot of coming into the office on the horizon?
Next, we’re gonna look at competition. Remember, there’s always competition. If there’s not, there will be.
And finally, we’re looking at commercialization, and that’s the question of how are you gonna monetize this concept and turn it into a business and generate profits?
And that’s a three-minute review. Those are the fields of data that you’re going want to fill out and be ready to answer to. But that’s how typically an investor’s looking at your deal. So, be aware. Now you know what’s going on inside the investor's mind when he’s looking at your data.

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