5. The Management Test

Venture Capital firms will test the depth of your management team.
The Managerial Test – Area Tested Scoring Range
History of Management Success
cd Worked together on a previous success (4 points)
cd Prior individual successful venture (3 points)
cd Management with successful competitor (2 points)
cd No prior management of successful venture (0 points)
0 – 4
Prior Responsibility Experience
cd Managerial and financial responsibility (3 points)
cd Manager responsibility only (2 points)
cd Financial responsibility only (1 points)
cd No managerial or financial responsibility (0 points)
0 – 3
Creating, Developing, and Launching New Products or Services
cd Team of managers has experience (3 points)
cd Managers individually have experience (2 points)
cd Only one manager has experience (1 points)
cd No managers have experience (0 points)
0 – 3
Depth of Competition Experience
cd Team of managers has experience (3 points)
cd Managers individually have experience (2 points)
cd Only one manager has experience (1 points)
cd No managers have experience (0 points)
0 – 3
Managers Resumes of Experience and Varity of Skills
cd Varied experience with broad skills (2 points)
cd Similar experience with broad skills (1 points)
cd Similar experience with limited skills (0 points)
0 – 2
Knowledge of Capital Markets and Investor Relations
cd Very Good (1 points)
cd Limited (0 points)
0 – 1
Cooperation and Openness During The Due Diligence Review
cd Very Good (1 points)
cd Linited (0 points)
0 – 1
Character, Values, Morals
cd Displays honesty, integrity and persistence (1 points)
cd Question in credit history or background (0 points)
0 – 1
Presentable To Wall Street
cd Will yield control and values shareholders (1 points)
cd Any control or self serving issues (0 points)
0 – 1
Operational Planning and Reporting Processes
cd Consist "Analyst Type" plans and reports (1 points)
cd Anything other (0 points)
0 – 1

Here again your company must score a minimum of 10 points. As you can see this is a running test that is scored through all the other steps above. If your score is very low your company may never make it to the due diligence investigation.

 

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