Deal Screening

Scoring: 1= Unsatisfactory 2= Weak 3= Satisfactory 4= Good 5= Excellent

CATEGORY AND QUESTIONS

General Information

• Was all requested information submitted?
• Was the overall content understandable and well presented?

Products/Services

• Are the company product/services adequately described?
• Is the ownership well understood?
• Is it clear that the company owns or has licensed all relevant technology?
• If the company is dependent on patents or other intellectual property ownership rights to succeed, has the company obtained such protection or taken all steps to date to obtain such protection?
• Are there large industry competitors which could engineer around the company’s patents?
• Do the product/services solve a current market issue? 
• Are there unique attributes to the product/services which provide market differentiation?
• Is this a single product/service company or a suite of potential products/services applicable to more than one market? (1: single/narrow niche to 5: numerous/highly diverse)

Market

• Is the market adequately described?
• Is the market realistic?
• Is there a well-defined marketing plan, including distribution?
• What is the size and scope of the market? (1: Less than $10 Million and regional to 5: Greater than $1 Billion and global)
• Is the market considered a growth market?
• Is the customer base well defined, including compelling reasons for customer purchase?
• Is there a need for follow-on customer relationships (e.g., maintenance services), and, if so, has this been well defined and addressed?
• Has the company established all necessary partnerships, whether service providers, manufacturers, distributors, or third-party developers?

Competition

• Does the company recognize competitors?
• Has the company done a competitive analysis, with attention to key features and benefits?
• Has the company fairly analyzed and compared or contrasted itself with the competition?
• Does the company present a strong and factually based reasoning for its competitive advantage?
• Are you aware of other players in the market that the company has not identified?
• Does the company need a first-mover position?
• If a first-mover position is needed, will the company have adequate financial resources and/or first-to-market timing advantage to make this approach succeed?

Management

• Does management have adequate experience and expertise to properly build the company?
• Is the management team complete?
• If not complete, does management recognize these needs?
• Has the management worked together before?
• Has management been previously funded?
• Does the Board of Directors include outside directors?
• Does the Board have a diversity of skills and background?
• Does the company have a Board of Advisors? 

Financials

• Has the company provided adequate and understandable current and projected financial statements?
• Are the company’s projections realistic?
• Do the financials show a viable and sustainable revenue model?
• Has the company adequately considered all costs associated with developing and marketing its product/services?
• Has the company articulated the use of raised funds?
• Is the company using the funds to pay off debts?  (1: More than 50% used for debt reduction or elimination to 5: No use on debt)
• Has the company considered a reasonable exit strategy?
• Have the founders contributed their own capital into the company?
• Is the company dependent on others for success? (1: Yes, nearly completely to 5: None whatsoever)

Total Score