Tag Archives: Venture Phenome Project

How do you Measure Up?

Innovation is the backbone of our economy. Without it, we simply won’t have the game-changing economic growth needed to end the global financial crisis. Even with nearly six million new businesses started every year, the process for creating American innovation remains remarkably inefficient.* The time, effort, and capital wasted on genetically-flawed businesses represents the loss [...]

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New Venture Evaluation #18: Management Compensation

One of the most powerful forces for managing people, and determining the direction of a business is compensation. That which can be measured and that upon which people will be paid, are both core drivers of a business. The goal of this element is to seek a healthy balance between keeping the entrepreneur focused and [...]

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New Venture Evaluation #17: Debt

The purpose of this Phenotype element is to determine what if any debt the business may have at the time of the financing, and more importantly if that debt will be serviced immediately upon closure of the round. What one isn’t looking to do is to fund a company only to have all the cash [...]

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New Venture Evaluation #16: Secondary Sales Potential

The purpose of this element is to uncover what can be one common way to rapidly expand and grow a business: the second serving. One of the easiest ways to grow revenue is to sell the consumer a second offering after completing the first transaction. What to look for here are types of secondary offerings, [...]

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Marketing Your Plan: Venture Evaluation #15

The purpose of this element is to determine whether or not the business has a strong marketing plan in place, and if that plan is something that can be executed with the capital available. There are two key components to a great marketing plan: 1. Brand strategy – Without a clear and compelling brand, a [...]

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New Venture Evaluation #14: Operational Speed

New Venture Evaluation #14: Operational Speed

This  element is designed to look for a key trait in the management team of nearly all successful new ventures: speed. While some people can drive a car comfortably at 100 MPH, others start to panic and constantly ride the brakes. Key entrepreneurial instincts and the ability to move quickly (combination of confidence, analysis, and [...]

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Breaking Even: New Venture Evaluation # 13

When evaluating a venture, one of the key areas to look at is the company’s projected time to break even. In economic terms the equation looks like this: (Break Even = Fixed Cost / (Unit Price – Variable Unit Cost)), but in reality the break even point is a huge day for a new business. [...]

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Understanding your Competition: Venture Analysis Element #12

Did McDonalds take Starbucks seriously? Think they do now? A crucial undertaking of any new venture analysis is doing a thorough assessment of the Competition.  All new products are judged by consumers relative to existing products in the market. If there’s not a clear understanding of what’s already available (inside and outside of category), a [...]

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Think Rubber Bands or Elastigirl: New Venture Evaluation #11

This  element looks at “the type” of manager that is leading the charge. There are legendary stories about leaders who no matter what changes take place, stick to the original plan. While sticking to the game plan is a good thing, if it means heading in the wrong direction for several years, it is a [...]

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Be Forewarned About Those 4 Wheels

The following excerpt is taken from Breaking Through The Broken: The Transparent Guide To Overcoming The Inefficiencies In Early Stage Venture Capital. Buying a used car is an exciting process, but coming home with buyer’s remorse is easy if you don’t do your homework. To avoid a financial disaster, not to mention having a two-ton [...]

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