|
Selected Investment Criteria |
Ranking by
Business Angels |
Ranking 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/service |
3 |
5 |
|
Growth potential of the market |
6 |
6 |
|
→
Quality of the product/service |
7 |
10 |
|
Niche
market
>>> |
9 |
13 |
|
Informal
competitive protection of the product/service (know-how) |
12 |
14 |
|
Nature of competition in the industry |
17 |
16 |
|
Overall competitive protection of the product/service |
21 |
11 |
|
Formal competitive
protection of the product/service (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) |
|
Possibility of investor's involvement in
→
business development |
13 |
18 |
|
Investor's strengths in filling gaps in the business |
14 |
26 |
|
Venture
is local |
23 |
27 |
|
Other business attributes (miscellaneous) |
|
Potential
exit routes (liquidity) |
24 |
12 |
|
Investor's understanding of the business or industry |
25 |
17 |
|
Presence of (potential) co-investors |
26 |
25 |
