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