| Pre-Money
Risk Assessment
Professional venture capitalists perform
thorough analysis and assess key risks before investing in a company or concept. These
risks include:
Team Risk
 |
Measurement
of the quality and skill level of the management team. |
|
Team
possession of skills required for the business plan. |
|
Ability
of team members to work well as a team. |
|
Ability
of team to implement business plan. |
|
Team
performance to date. |
|
CEO
experience in starting and operating a similar company. |
Business
Strategy Risk
|
Quality
and scale of the business opportunity, plan, strategy, and tactics. |
|
Size
of success in this market sufficiently exciting. |
|
Appropriateness
of business plan and strategy developed for success in this
market. |
Product/Technology
Risk
|
Achievability
of planned technological advances. |
|
Required
significant technological advances before finalizing product. |
|
Whether
product development effort is contingent on outsiders’
technology advances. |
Market
Risk
|
Market
need conclusively demonstrated. |
|
Market
size and growth rate. |
|
Ready
assessment of market characteristics. |
|
Market
accessibility. |
|
Market
structurally suited to business strategy. |
|
Market
support of growth rates and pricing levels. |
Operations
Risk
|
Complex
and difficult business to control. |
|
Possession
of necessary skills to operate business. |
Financial Risk
|
Capital
required to properly develop the business. |
|
Value
of venture upon achievement of business plan. |
|
Time
to achieve value. |
|
Exit
plan with liquid repatriated returns. |
The
professionals at Adams Capital, Inc. are experts in measuring these risks and developing
comprehensive financial models and business plans that assist in raising capital or
analyzing investments in start-up companies.
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