What questions do VC ask when evaluating an investment proposition?
Product/service commercially viable?, Potential for sustainable growth?, Maanagement ability to exploit potential? Management ability to control over growth stages? Reward justify risk? Return meet Criteria?
2 of 10
What else do VCs look at?
Porters 5 Forces of investment
3 of 10
What are the components of Porters 5 forces?
Barrier to entry, Threat of substitute, Buyer power, supplier power, Industry rivalry
4 of 10
What will VC ask about Tech company?
Is it disruptive?, Is there a need?, What is the the product's USP?
5 of 10
What is Deal Flow?
The frequency of investments made
6 of 10
Sources of Deal flow
Name (brand), Unsolicited approaches from mgt teams, Introduction from Intermediaries, Referrals from Portfolio company, Introduction from other PE firms, Investment forum, Actively seeking deals
7 of 10
What is key to deal flow?
Differentiation
8 of 10
How can a PE firm differentiate itself from others?
Proactive approach, Different strategy focus, Have the best track record, Have a big profile in the marketplace, Knowledge of market
9 of 10
What are Business Angels and the size of investment they invest?
They are wealthy individual investors, usually invest between £20k to £200k
10 of 10
Other cards in this set
Card 2
Front
What questions do VC ask when evaluating an investment proposition?
Back
Product/service commercially viable?, Potential for sustainable growth?, Maanagement ability to exploit potential? Management ability to control over growth stages? Reward justify risk? Return meet Criteria?
Comments
No comments have yet been made