Although most venture lending companies have their roots in equipment financing, 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 base 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
