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Screening Criteria

  1. Vision: Do the entrepreneurs know what they want to do and what the company will be when this vision is achieved? Is there a clear and executable path to achieve this vision?
  2. Market Attractiveness: Is the market growing? Is the market one that can be penetrated by a new player? Is the company creating a new market? Does the new market make sense? Will the established companies permit this new market to exist? Can the market-share goals be achieved within the skills and resources of the company?
  3. Differentiation? Viva la difference! Is there a clear separation between what the company is offering and the competition? Can the company position its product/services as a distinctive offering? Will this difference help the company succeed?
  4. Intellectual Property: Does the company have patent or other protection for its intellectual property? How strong is the IP? Does the IP have value of its own? Is there international protection for the IP?
  5. Value Proposition: What is the value proposition the company is offering its customers? Is this unique? Do the customers perceive the same value?
  6. Management Team: Bet on the jockey not the horse! Does this management team have the skills and experience to succeed? Does the management team have the proper contacts? Can this management team execute the business plan?
  7. Business/Revenue Model: Is the proposed business model the right one? Will this business model generate sufficient revenue/profit to execute the business plan?
  8. Stage: What stage is the company? Is it too early or too late for Twin Cities Angels?
  9. Ability to Compete: What is the competition? Can the company compete? Is the product/service competitive? Does the management team have ability to compete? Are there sufficient resources to launch a competitive product/service and to execute the right sales/marketing program?
  10. Valuation: What is valuation as provided by the company? What is valuation as determined by the Twin Cities Angels? Can these valuations be reconciled? Does the agreed upon valuation provide the ability for the Twin Cities Angels to achieve the desired ROI? Will the valuation attract other investors?

Scoring: Each of the ten items is scored on a 1-5 basis with 5 being the best and 1 the worst. Suggested criteria:
1. Company fails to meet any of the elements of the evaluation criteria.
2. Company meets some of the elements but is delinquent.
3. Company marginally meets the elements.
4. Company excels is some elements of the criteria.
5. Company excels in meeting all elements of the criteria.

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