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Researching venture capital firms is utterly essential to figure out precisely what they look for and expect in an investment, exactly what their investment parameters entail, and what the VC firm specializes in. Typically the fund will have a detailed website which will clearly explain their Fund Objectives. You will also find this critical information on their Offering Prospectus / Memorandum to their investors. Below I have outlined the different [url=http://wo.fensicn.com/forum.php?mod=viewthread&tid=12962&pid=14283&page=1&extra=page=1#pid14283]doudoune moncler homme Compact Disc Label Printing[/url] objectives of a VC fund to give you an idea what you need to find in your research.

Investment Objectives

? Rate of Return expectations.
? Long- term or short- term capital appreciation.
? Early, Middle or Late Stage Companies.
? Sectors concerned in.
? High growth potential.
? Liquidity Options.
? Expertise, Experience & Reputation [url=http://www.eracorrect.com]mulberry sale[/url] of the Fund.
? Advisory Board Members.
? Members of the Fund.

Investment Criteria

? Evaluate in terms of Management, Product, Markets, Financials, and Business Stage.
? Highly competent and motivated management team.
? Proprietary Product [url=http://www.hoozmate.com/blogs/entry/louboutin-pas-cher-Rideau]louboutin pas cher Rideau[/url] or service that: meets a strong market need: Favorable price and cost relationship.
? A market which has a favorable mix of Size, Growth, Competitive Barriers and the potential for high volume sales.
? Management:
o People are the most important element in a Company's success
o Balanced Team
o Superior Skills
o Team leader with a track record
o Ability to hold and attract talent
o Understands Planning & Control
o Can make difficult decisions
o Can work with professional advisors
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o Commitment to the Venture
o Clearly understands the Funds' mind-set on liquidity, rate of return and investment objectives.
o Above all, integrity, character, accountability and high business ethical motive

Market

? Young, growing fast and provides opportunity
? Defined market niche.
? Dominance in that niche.
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? Realistic [url=http://www.sandvikfw.net/shopuk.php]hollister outlet sale[/url] Marketing Plan.
? Marketing Team leadership should have extensive industry contacts with sales people, sales reps and distributors.

Stage

? Mostly early stage but will consider later stage with high growth opportunities.
? Consider small public companies as well as private.
? Spin offs as a [url=http://www.mansmanifesto.com]doudoune moncler[/url] result of re-structuring and rejuvenation.

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The Risk / Return Evaluation

-- At the Product or Service Level:

? Level 1: Idea Stage. Not Operable. Market Assumptions.
? Level 2: Pilot/ Test Stage. Market refined.
? Level 3: Fully Developed. Few Customers. Market defined.
? Level 4: Satisfied Customers. Market Established.

-- At the Management Level:

? Level 1: Entrepreneur.
? Level 2: Few Founders.
? Level 3: Partial Management Team.
? Level 4: Full Management Team. Highly Experienced.

Note: The higher the Level from both Determinants (Product or Service & Management), the less Risk for a higher Return. 4/4 would be most desirable and cost the Entrepreneur the least. 1/1 would be the least desirable and cost the Entrepreneur the most. A 2/2 or 3/3 are good Level Combinations to shoot for prior to approaching Venture Capital if financially practicable.

The Present Value / Future Value Evaluation

-- Scenario: Expected ROI is 35% per year, without inflation, over 5 years. Present Value of Earnings is $4.5M. Future Value Earnings in 5 years is $15M.

? VC Equity Share is calculated: $4.5M divided by $15M = 30%.
? Maximum Investment is 10 times first year gross (expected) earnings, which in this example is about $500,000.
? Conclusions: $5M maximum investment for 30% of the Company at 3/3 Level over a 3 year period. A 1/1 Level, Seed/Start Up Investment would be a 45-50% Equity Stake, with an expected ROI of 60%.