Advanced Technology Development Center (ATDC) Investment Feasibility Assessment

8/14/2019 Advanced Technology Development Center (ATDC) Investment Feasibility Assessment

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1. Investment Feasibility Assessment

OutcomeIdentify strengths and weaknesses in your business as compared to a model investment opportunity.

Overview

InstructionsStep 1: Review the Investment Feasibility Assessment Criteria Descriptions.

Step 2: Total Score.

Step 3: Evaluate your business.

Step 4: Work with your coach to address challenging areas.

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This assessment identifies the major (not all) criteria that an investor will use to evaluate an investment opportunity in your business. By evaluating

against these criteria, you can determine your readiness to pursue outside investment. The criteria can also be used to develop benchmarks for impaspects of your business.

Review the criteria and descriptions on Sheet 2 of this worksheet. For each criterion, choose the description that most closely matches your situatiodescriptions number (1 through 5) on the Scoring Page (Sheet 3 and Sheet 4 of this worksheet). The company and their coach have separate sco

On the Scoring Pages, the points will be automatically totalled for your investment opportunity on the 20 criteria. NOTE: The model, or perfect, invewould score a 5 on every criterion, for a total of 100 points.

In a comparison of an investment in your business against the model investment opportunity, no score guarantees an investment. A score of less th

individual criterion indicates a weakness in the investment opportunity, which requires further consideration. Also, pay attention to any area (manatechnology, traction, business model) where your score was less than one-half of the possible points overall. The Analyses on Sheets 3a & 4a provinformation based on the scores that the company received for each criterion.

Your coach will independently complete this assessment based upon his/her perspective on your business. Sheet 5of this worksheet combines thecompany and coach score sheets and compares how each criertia was evaluated. Areas of agreement and divergence are highlighted, and the compstrategies to address any weak areas and identify why there is this difference in scoring.
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MANAGEMENT

Transferable record of success

Appropriate functional and industry experience

Worked together previously

Team is complete

Ability and experience to leverage scarce

resources


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MARKET

Available market well defined and large

Market is growing

Competition has identifiable weaknesses

Customers receptive to early stage companies

Market entry by new competitors is difficult


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TECHNOLOGY

Technology is broad

Technology is exclusive to Company

Company based on unique or innovative use oftechnology

Expertise in place to maintain and expandtechnology


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TRACTION

Product/service is ready to sell

BUSINESS MODEL

Business model is attractive and efficient

Multiple exit opportunities exist

Favorable risk/return tradeoff for investors

Value proposition is quantifiable in customersterms

Customers have validated Companys valueproposition


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2. Criteria and Descriptions

1. Team has limited record of success.

2. One or two team members have significant professional accomplishments.

3. Several members of management have significant professional accomplishments.

4. Several members of management have created wealth for investors.

5. Several members of management have created wealth for investors via a similar business concept.

1. Team can function without executive dining privileges and personal assistants.

2. Entrepreneurial experience limited to internal corporate initiatives.

3. Team has entrepreneurial experience but limited success to date.

4. Several team members have grown a company from zero to over $20M in revenues.

5. Team has grown multiple companies from zero to over $20M in revenues

1. Lots of passion, limited functional or industry experience.

2. Company has identified key hires to provide functional and industry expertise.

3. Team has appropriate functional and industry experience (given its stage).

4. Several members of senior management have significant functional and/or industry experience.

5. All senior team members have significant functional and industry experience.

1. Team is totally new.

2. New team with complementary backgrounds.

3. New team but has worked together, successfully, for several months.

4 CEO has previously worked with one to two key team members.

5. Several members of management have worked together before.1. Technology-focused team.

2. Key functional leaders in place, no CEO.

3. Key functional leaders and stage-appropriate CEO in place.

4. Exit-ready CEO and key functional leaders in place.

5. Exit ready team in place.


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1. $1B annually.

1. 100% annually.

1. Many strong competitors.

2. No competitors known.

3. Competitors known, with moderate weaknesses in Companys defined niche.

4. Competitors known, with significant weaknesses in Companys defined niche.

5. Competitors known and pose limited threat.

1. Customers are conservative and only buy from established players.

2. Customers are historically conservative but open to new players given current market conditions.

3. Several trailblazers exist that will buy from new players to exploit a strategic advantage.

4. Trailblazers exist and majority of remaining customers will adopt upon positive validation of value proposition.

5. Customers are aggressive and frequently buy from early stage companies.

1. Competitors can enter at will.

2. Market entry possible with modest time and capital investment.3. Market entry restrict by at least one barrier that requires a significant investment of time and capital to overcome.

4. Market entry restrict by several barriers that require a significant investment of time and capital to overcome.

5. Market entry is difficult even for committed and well financed competitors.


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1. Technology is well-established.

2. Technology is well-established. Company has identified potentially novel applications.

3. Technology is well-established. Company has identified novel applications.

4. Novel technology platform with significant potential.

5. Novel technology platform that is widely-recognized as state of the art.

1. Company has no relationship with the creators of its technology.

2. Company has informal access to the creators of its technology.

3. Company has formal access to the creators of its technology.

4. Company uses external personnel and employees to support and expand its technology.

5. Companys technology is supported by internal employees.

1. Technology is applicable to a limited set of applications.

2. With an investment in R&D, technology is applicable to a modest set of applications in several markets.

3. Technology is applicable to a modest set of applications.

4. With an investment in R&D, technology is applicable to a significant set of applications in several markets.

5. Technology is applicable to a significant set of applications in several markets.

1. Company has non-exclusive rights to its technology.

2. Company has exclusive rights to portions of its technology.

3. Company has exclusive rights to its technology subject to certain performance metrics.

4. Company has exclusive rights with the option to own its technology.

5. The Company owns all of its technology.


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1. Companys product/service is just a concept.

2. Customer feedback has shaped product/service specifications.

3. Concept has been reduced to a prototype.

4. Customers are using/testing pre-commercial versions of Companys product/service.

5. Product/service is ready to sell.

1. No target customers.

2. Target customers know, pain is unknown.

3. Company has identified target customers with significant pain.

4. Value proposition is compelling but only in qualitative terms.

5. Value proposition is compelling and quantifiable.

1. Many leads, few qualified prospects.

2. Significant pipeline of qualified prospects.

3. Customers are sampling but not yet buying.

4. Customers have verbally communicated intent to purchase.

5. Company is generating revenues through the delivery of its value proposition.

1. Lumpy revenues, low margins, capital intensive.

2. Profitable but difficult to scale.

3. Profitable and scalable.

4. Highly profitable, scalable, but capital intensive.

5. Highly profitable and scalable.

1. Acquisition or IPO is unlikely.2. IPO is unlikely and pool of potential acquirers is limited.

3. Several potential acquirers identified.

4. Exit via acquisition probable; IPO is possible.

5. Exit via acquisition or IPO.

1. Significant capital investment required. Investors likely to achieve modest returns even under best case conditions.

2. Significant capital investment required. Investors will probably receive a return of their capital but upside will be modest.

3. Modest capital required. Investors equally likely to achieve a homerun or total loss of capital.

4. Modest capital required. Potential to become a homerun with a return of capital likely under most conditions.

5. Potential homerun opportunity. Investors will make money under most conditions.


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3. Company Scoring Page

MANAGEMENT 1 2 3 4 5 otal STATUSTransferable record of success. 0 0

Ability and experience to leverage scarce resources. 0 0

Appropriate functional and industry experience. 0 0

Worked together previously. 0 0

Team is complete. 0 0

MARKET 1 2 3 4 5Available market well defined and large. 0 0

Market is growing. 0 0

Competition has identifiable weaknesses. 0 0

Customers receptive to early stage companies. 0 0

Market entry by new competitors is difficult. 0 0

TECHNOLOGY 1 2 3 4 5Company based on unique or innovative use of technology. 0 0

Expertise in place to maintain and expand technology. 0 0

Technology is broad. 0 0

Technology is exclusive to Company. 0 0

TRACTION 1 2 3 4 5Product/service is ready to sell. 0 0

Value proposition is quantifiable in customers terms. 0 0Customers have validated Companys value proposition. 0 0

BUSINESS MODEL 1 2 3 4 5Business model is attractive and efficient. 0 0

Multiple exit opportunities exist. 0 0

Favorable risk/return tradeoff for investors. 0 0

Next to ea

Please enitem, othe

STATUS col


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3a. Analysis of Company Score

MANAGEMENT REMEDIES & CO

Transferable record of success. No Company Score Recorded Yet

Ability and experience to leverage scarce resources. No Company Score Recorded Yet

Appropriate functional and industry experience. No Company Score Recorded Yet

Worked together previously. No Company Score Recorded Yet

Team is complete. No Company Score Recorded Yet


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MARKET

Available market well defined and large. No Company Score Recorded Yet

Market is growing. No Company Score Recorded Yet

Competition has identifiable weaknesses. No Company Score Recorded Yet

Customers receptive to early stage companies. No Company Score Recorded Yet

Market entry by new competitors is difficult. No Company Score Recorded Yet


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TECHNOLOGY

Company based on unique or innovative use of technology. No Company Score Recorded Yet

Expertise in place to maintain and expand technology. No Company Score Recorded Yet

Technology is broad. No Company Score Recorded Yet

Technology is exclusive to Company. No Company Score Recorded Yet

TRACTION

Product/service is ready to sell. No Company Score Recorded Yet

Value proposition is quantifiable in customers terms. No Company Score Recorded Yet

Customers have validated Companys value proposition. No Company Score Recorded Yet

BUSINESS MODEL

Business model is attractive and efficient. No Company Score Recorded Yet

Multiple exit opportunities exist. No Company Score Recorded Yet

Favorable risk/return tradeoff for investors. No Company Score Recorded Yet


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4. Coach Scoring Page

MANAGEMENT 1 2 3 4 5 otal STATUSTransferable record of success. 0 0

Ability and experience to leverage scarce resources. 0 0

Appropriate functional and industry experience. 0 0

Worked together previously. 0 0

Team is complete. 0 0

MARKET 1 2 3 4 5Available market well defined and large. 0 0

Market is growing. 0 0

Competition has identifiable weaknesses. 0 0

Customers receptive to early stage companies. 0 0

Market entry by new competitors is difficult. 0 0

TECHNOLOGY 1 2 3 4 5Company based on unique or innovative use of technology. 0 0

Expertise in place to maintain and expand technology. 0 0

Technology is broad. 0 0

Technology is exclusive to Company. 0 0

TRACTION 1 2 3 4 5Product/service is ready to sell. 0 0

Value proposition is quantifiable in customers terms. 0 0Customers have validated Companys value proposition. 0 0

BUSINESS MODEL 1 2 3 4 5Business model is attractive and efficient. 0 0

Multiple exit opportunities exist. 0 0

Favorable risk/return tradeoff for investors. 0 0

Next to eac

Please ensitem, othe

STATUS col


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4a. Analysis of Coach Score

MANAGEMENT REMEDIES &

Transferable record of success. No Coach Score Recorded Yet

Ability and experience to leverage scarce resources. No Coach Score Recorded Yet

Appropriate functional and industry experience. No Coach Score Recorded Yet

Worked together previously. No Coach Score Recorded Yet

Team is complete. No Coach Score Recorded Yet


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MARKET

Available market well defined and large. No Coach Score Recorded Yet

Market is growing. No Coach Score Recorded Yet

Competition has identifiable weaknesses. No Coach Score Recorded Yet

Customers receptive to early stage companies. No Coach Score Recorded Yet

Market entry by new competitors is difficult. No Coach Score Recorded Yet


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TECHNOLOGY

Company based on unique or innovative use of technology. No Coach Score Recorded Yet

Expertise in place to maintain and expand technology.No Coach Score Recorded Yet

Technology is broad. No Coach Score Recorded Yet

Technology is exclusive to Company. No Coach Score Recorded Yet

TRACTION

Product/service is ready to sell. No Coach Score Recorded Yet

Value proposition is quantifiable in customers terms. No Coach Score Recorded Yet

Customers have validated Companys value proposition. No Coach Score Recorded Yet

BUSINESS MODEL

Business model is attractive and efficient. No Coach Score Recorded Yet

Multiple exit opportunities exist. No Coach Score Recorded Yet

Favorable risk/return tradeoff for investors. No Coach Score Recorded Yet


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5. Company vs. Coach

Company Coach Status

MANAGEMENT

Transferable record of success. 0 0 0

Ability and experience to leverage scarce resources. 0 0 0

Appropriate functional and industry experience. 0 0 0Worked together previously. 0 0 0

Team is complete. 0 0 0

MARKET

Available market well defined and large. 0 0 0

Market is growing. 0 0 0

Competition has identifiable weaknesses. 0 0 0

Customers receptive to early stage companies. 0 0 0

Market entry by new competitors is difficult. 0 0 0

TECHNOLOGY

Company based on unique or innovative use of technology. 0 0 0

Expertise in place to maintain and expand technology. 0 0 0

Technology is broad. 0 0 0Technology is exclusive to Company. 0 0 0

TRACTION

Product/service is ready to sell. 0 0 0

Value proposition is quantifiable in customers terms. 0 0 0

Customers have validated Companys value proposition. 0 0 0

BUSINESS MODEL

Business model is attractive and efficient. 0 0 0

Multiple exit opportunities exist. 0 0 0

Favorable risk/return tradeoff for investors. 0 0 0

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Things are Good Responses

MANAGEMENT

Transferable record of success.

Ability and experience to leverage scarce resources.

Appropriate functional and industry experience.

Worked together previously.

Team is complete.

Great! This will definitely be an advantage moving forwmanagement team has had. Incorporate those portionventure. Ensure that any hard lessons learnt are not re

Great! Having this ability and Experience can provide asucceed.

For a software or other technology company, relevanthave strong technical experience, so its important to aproducts shipped on time is important. If there is modivided/shared. Can founders communicate business

Good. Often a startup is formed when several colleaguare familiar with each other's values, corporate culture

entrepreneurs can attract people who have worked foabilities. Perhaps more important, the trust that typica

Good. The management team is critical to the companin filling out the management team after the financingmanagement team beforehand.


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MARKET

Available market well defined and large.

Market is growing.

Competition has identifiable weaknesses.

Customers receptive to early stage companies.

Market entry by new competitors is difficult.

Be prepared to provide a thorough definition of yourproblem that your product or service solves. Additiocan be capitalized upon to bring your venture to profmarket size and demographics should be supported

associations, government research, and other sourcegrowing markets. Absent such market characteristic

and penetration dynamics are critical to selling yourreference those research sources. Additionally, you

aggressive in your assessments, but be prepared to

A demonstrated understanding of the market is criticsegment. Are the markets regional, national, internaneeded to capitalize on the markets. What factors w

A thorough understanding of the competition and a w

factors in the market: product performance, reliabilwill react to changes in the market, and attempt to idcompetition brings.

It is imperative to know what factors will drive customake his decision? Such factors may include perform

relative to the others will determine where managemyour product have different market segments, and d

buying characteristics which should be considered, s

How have you determined the barriers, and how willovercome them. Desirably, your product will not onl

A thorough understanding of the market barriers wil


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ll advantage of the previous successes that yourmodify those that would be useful in your current

ere encountered previously.

art of the companies overall strategy in order to

good product out the door. Generally, foundersal management experience on the team, as gettingonsider how the responsibilities will be

ollectively create something new. Because theye founding team is comfortable with. When

e thing, it's an endorsement of their leadershipeginning.

ide investment. While outside investors can helpess to investors by filling in gaps in the


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de a description of the problem and the size of theustomer, their behaviors, and how those behaviorsanding of the market and the estimation of theces such as Gartner, Forrester, industry or trade

ting their money in large, profitable, and fast-erested. Your understanding of the market sizeresearch to size the market and be prepared to

s realistically achievable for your venture. Betration.

xt five years) rate of growth for the marketmore specialized knowledge and expertise isikelihood that these factors will materialize?

is very important. Cite the principal competitive

handising, price, and other factors. Know how youentry into the market and the changes that

cal success factors upon which the customer wille, and service. Each factor and its importanceproduct development phase. In addition, doessame reasons? Does your market have any specialindustry trends?

of you, investors will want to see how you will

her barriers behind you as you enter the market.


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ep competitors at bay for as long as possible.

duct marketing effectively.

the way in which your product is unique MATTERed for these?

ations,markets, and customers, the companyr to determine what the best course of actionserve.

o their investment. If your rights arise from aions are reasonable and in line with marketes the patent last?

he technology into a product or service that fits

e and refine the value proposition. It is notts, services and the people standing behind them

g the best possible model for your business andst model to get the company to the next level

ny should consult with a mentor/coach/business

romised and that the original founders of the


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Things can Improve Respo

MANAGEMENT

Transferable record of success.

Ability and experience to leverage scarce resources.

Appropriate functional and industry experience.

Worked together previously.

Team is complete.

Many investors base their entire investment deciprofessionals with experience in every function cposition. Outline the companies you worked for, position. Industry experience is looked at favoraexperience an absolute must, but if you lack dire

abilities and experiences in previous managemensupervised? For how long? The goal here is to pr

Should be able to leverage scare resources to maunderstand the goals against which resource use

If you are lacking technical talent, this is an areatake rigorous programming tests the quantity perspective, its more important to have enginee

manager than technologist. However, this may nyou need someone with experience in licensing d

Often a startup is formed when several colleaguefamiliar with each other's values, corporate cultuentrepreneurs can attract people who have workabilities. Perhaps more important, the trust that

It is never too soon to get started. The managem

outside investors can help in filling out the mana

filling in gaps in the management team beforeha


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MARKET

Available market well defined and large.

Market is growing.

Competition has identifiable weaknesses.

Customers receptive to early stage companies.

Market entry by new competitors is difficult.

Obviously, the lack of a clearly defined market wwill be unable to raise capital and may damage

be successful. You should spend more time resyour technology may be adapted. Limited mark

penetration in a lesser market may not allow yoability to demonstrate to the investors that you attention. They may be interested in smaller m

may enable them to increase your penetration omay appreciate what your product can do for th

determine if there may be more strategic investfrom your product or service.

In a mature or declining market, your product o

realistically demonstrate that you understand tcustomers will abandon their current product in

Service? Quality? Innovation? Reliability? Als

It will be difficult to raise money without a solid

development of the business plan is to overstat

the actions on the directions charted in the bus

realistic view of the competition. Show how theenvironment in these situations.

Investment of valuable management resources

buying decisions. Research others in your mark

evident. Ensure that your research provides yo

qualitative factors such as performance, quality

Investors will quickly conclude that a managem

necessary to achieve success in the market.


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TECHNOLOGY

Company based on unique or innovative use of technology. What is your competitive advantage? Are those c

Expertise in place to maintain and expand technology.

Technology is broad.

Technology is exclusive to Company.

TRACTION

Product/service is ready to sell.

Value proposition is quantifiable in customers terms.

Customers have validated Companys value proposition.

BUSINESS MODEL

Business model is attractive and efficient.

Multiple exit opportunities exist.

Favorable risk/return tradeoff for investors.

It is important for the company to protect and ex

ensure that the company is in charge of the techn

significant barriers to entry and your company m

The company should spend some time and resourconsidered. Many times it will be one of these altand still be able to offer the orginal concept if the

Without rights to use the technology, you can't m

anyone else owns the technology, you need to nelicense needs to be sufficient to achieve your goa

How long and how much money will it take to deothers (competitors) developing similar technolo

A true value proposition is quantifiable with hard

make decisions. Of course, all CFOs are not the sa

Value ultimately drives the decisions companies moptions. The value of a product or service is the chave some sort of indication from your target cus

You should consult with industry experts and ben

You should also look outside of your industry to dcompetitive edge. Once a suitable model is foundand to determine if it will get the business to the

You should consider if there are alternative exit o

is right for you and for the business.

This might it difficult to raise sufficient capital to investment more favorable to investors while at tbusiness will have.


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Documents

Advanced Technology Development Center (ATDC) Investment Feasibility Assessment