Is Your Company Venture Capital Worthy?

The Venture Capital Workbook points out just how little funding actually comes from Institutional Venture Capital Funds compared to how many startups waste their energy only on venture capital. So, how do you know if your company is venture capital worthy?

The VC Workbook offers a ten question test to help you figure out if your company is appealing enough for venture capital funds. Answer the questions on a scale of 0-10, 0 meaning that the question does not cover the question at all, and 10 meaning your company totally applies to the question.
  1. Does your company offer a unique service or technology?
  2. Can your business carve a considerable market share against existing competitors?
  3. How much funding will be put toward research and development and toward reaching the market?
  4. What is the ease of the market?
  5. What level of customer service with your product need?
  6. Who large is the market that your product will serve?
  7. Can your product create a gross margin over 50%?
  8. Does your management team have the skills and capacity to succeed?
  9. Are you and your team committed to your company's success?
  10. Can your company achieve $25 million annual revenue within 3 years, and $50 million within 5 years? This question must be answered as a "ten" in order to pass the test, if this is not a "ten" then your company may not be suited for institutional venture capital.
Total your score, if you have an 80 or above you pass and you may be a candidate for institutional venture capital backing. If you did not pass then it may be your company is either not ready for institutional venture capital or you should consider other means of financing like angel investors or public investors.

Note: The test provided by the Venture Capital Workbook is by no means an exact measurement of your company and is only intended to give an idea of your company's chances of obtaining venture capital.

Link to This Resource: Is Your Company Venture Capital Worthy?

http://privateequityblogger.com/2008/07/is-your-company-venture-capital-worthy.html
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