Although most firms that lend to emerging technology companies have their roots in equipment financing or commercial banking, we approach the business as an investment in people and ideas, and focus our efforts on developing a comfort level with the management team and an understanding of the business model.
As we begin our review of a new client's business plan, we ask ourselves two fundamental questions: Is there a profitable market opportunity for this product or service? Is this a team and investor syndicate that can bring this product or service to market?
To that end, we look for the following attributes in a potential customer:
- A core management team with a strong leader and relevant industry experience
- Mature, professional equity investors with the resources and industry experience to support and guide the new company through the development phase
- Equity financing at an appropriate valuation
- Cash sufficient to carry the company to the next funding milestones
- Product or service with a substantial technological component
- Meaningful market traction