A. Reality check

Please score the venture (3) according to these eight initial criteria:

Probably NO

Probably NO but a plan exists to address the issue

Probably YES

Is there a written and fully current business plan?

Are there current financial statements and cash-flow projections prepared or reviewed by an outside accountant?

Does the business concept appear to be based on sound technical and business principles (i.e., does it make sense?)?

Is the time needed to reach positive cash-flow appropriate?

Based on the company’s achieving the financing it now seeks, will adequate financial resources be available?

If the business opportunity is based on proprietary technology, is the proprietary position adequately protected?

Is there good personal chemistry among the principals?

Do the personal financial needs of the principals match the capacity of the business?

B. Market Opportunity

Using the check-off scale (3), please give this venture a rough ranking for each of the listed factors.

Probably Inadequate

Probably equal to the competition

Probably better than most competition

Potentially outstanding

I cannot tell

Evaluate the company’s belief that is has a significant and credible market opportunity (i.e., is the product or service or business system distinctive or an order of magnitude better in performance?).

Assess the company’s market approach including strategies for dealing effectively with customer indifference (or lack of knowledge), differentiation strategies, competitive offerings, and other economic forces.

Evaluate the company’s ability, as a new entrant in this market niche, to survive long enough to succeed.

C. Management

Please score the venture (3) according to these five major criteria:

Probably NO

Probably NO but a plan exists to address the issue

Probably YES

Is there at least one member of the management team qualified to undertake the work?

Is the management team complete and appropriate for the work that is to be done?

Is there a willingness to bring in additional management and outside directors?

Is there an appropriate group of outside professional advisors?

Does management have the ability and experience to leverage scarce resources?

D. Technology issues

Using the check-off scale (3), please give this venture a rough ranking for each of the listed factors.

Probably Inadequate

Probably equal to the competition

Probably better than most competition

Potentially outstanding

I cannot tell

Assess the feasibility of the stated technology development goals and technology application objectives.

Compare the proposed development program with existing technologies (or with possible competing and future technologies).

Assess the company’s technical achievements to date.

Assess the company’s plan for obtaining any necessary regulatory or trade association approvals.

E. Resources

Using the check-off scale (3), please give this venture a rough ranking for each of the listed factors.

Probably Inadequate

Probably equal to the competition

Probably better than most competition

Potentially outstanding

I cannot tell

Evaluate the adequacy of the company’s budget in comparison to the work that is outlined.

Evaluate the possibility of raising additional funds to carry out the project.

Evaluate the adequacy of the facility against the needs of the tenant company.

F. Commercialization program

Using the check-off scale (3), please give this venture a rough ranking for each of the listed factors.

Probably Inadequate

Probably equal to the competition

Probably better than most competition

Potentially outstanding

I cannot tell

Assess the proposed commercialization timetable, in terms of....

R&D timetable

protecting proprietary rights

marketing timetable

manufacturing timetable

possible regulatory factors

Comment on the company’s sales function and its ability to compete in the marketplace.

Evaluate the company’s methods of distribution.

Evaluate the company’s approach to customer support.

Evaluate the company’s financial control, management, and strategic planning capabilities.

Evaluate the feasibility of the company’s commercialization milestones.