Equity Investment Criteria

 

The ideal equity investment opportunity would have the following characteristics:

  • Experienced Core Management Team: (not necessarily a complete team) with relevant success in developing similar technology, starting up new businesses, and penetrating similar markets.

  • Significant Market Opportunity: A market opportunity sufficiently large to create a business with revenues greater than $25 million within 5 years.

  • Thorough Understanding of the Dynamics of the Marketplace: Exciting, unique products or services that meet important customer needs, obsolescing existing alternatives.

  • Convincing Business Plan: A compelling, well-articulated strategy for capturing and defending a significant market share, including key execution milestones.

  • Unfair Competitive Advantage: A thorough understanding of the competitive landscape and a sustainable, overwhelming competitive advantage.

  • Defensible Intellectual Property: Strong and defensible underlying intellectual property is desired.

  • Realistic, Achievable Financial Projections: Supported by a detailed list of underlying assumptions that stand up to typical investor cynicism.

  • Appropriate Capital Needs: Deals requiring $250K-$2MM at pre-money valuations of less than $15MM.Additional future rounds should be thought out with respect to the timeline and amounts needed to scale the business.

  • Believable Exit Strategy: A credible, multi-option exit strategy, achievable within 5 -7 years, with an ROI of at least 10X invested capital.

  • Good Fit with e-Coast Angels mission, skills, and interests: Early-stage opportunities in SAAS, technology, communications, e-commerce, healthcare, and industrial products and services, principally located in the New England coastal region.

  • Cooperative Relationship between Candidate Firm and Angel Investors: Candidate firms must have the need and desire for advice and coaching, and willing to work with us as we actively advance the company

 

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