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What
Do Private Investors Forum Investors Look For?
- High growth potential, e.g. expected ROI
to be at least 30% and greater than 5 times money over expected
holding period.
- Experienced, strong, cooperative management
team in place. Management should have sales experience in the
targeted market segments.
- Well-defined and analyzed segmented market
- large or fast growing.
- Clear and complete marketing plan including
details on distribution channels, positioning, marketing, promotion,
and sales
- strategies, and staffing needs.
- Clear and detailed competitor analysis, e.g.
why we can beat them.
- Aggressive market approach with unique selling
proposition.
- Understandable proprietary technology.
- Well structured, complete business plan with
executive summary.
- Financial projections (i.e. P&L, Balance
Sheet and Cash Flow)with explanatory notes and assumptions.
- Board or Advisory position offered/available
for investors.
- Staged investment based on milestones.
- Debt or preferred shares convertible to common
if pre-revenue stage.
- Sales start no later than the first equity
injection/conversion.
- Positive cash flow within 12 months.
- Financial buffers to carry company six months
under worst-case scenario.
- Detailed budget and milestones.
- High quality outside advisors.
- Substantial investment by management and
controlling owners.
- Investor exit options within three to five
years.
- Downside protection, where appropriate.
- Deal sizes $200K to $2.0 million.
- Clear plan for use of funds with impact analysis
for higher and lower funding, where appropriate.
- Plan for subsequent financing rounds until
company is self-supporting with cash flow.
- Reasonable, justifiable valuation.
- Below market cash
compensation to management pre-profit.
Company
Review Process
Preliminary
Review
The Staff
of Private Investors Forum reviews executive summaries submitted
via email using our standard executive summary format.
To download
the executive summary in Microsoft Word format, click
here.
Executive
summaries submitted to Private Investors Forum will first be reviewed
to determine if they meet the investment criteria. The preliminary
review is conducted free of charge. Please submit your contact
name and someone will contact you. Please first read the entreprenuer
disclaimer:
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