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Blue Dot Ventures utilizes the following procedure for due diligence and
evaluation of the potential investment:
1. Business Plan:
Our team evaluates the written business plans and examines business models
looking for high gross margin / low capital intensity businesses
with planned markets
large enough to produce a company with a $100
million value
in three to five years.
2. Management Team: We interview the management team
regarding the plans and models, brief them on the balance of the pre-investment
process and develop a schedule for completing the process.
Blue Dot Ventures checks all references submitted, develops and checks
additional references.
3. Market: Blue Dot Ventures contacts
market experts and potential customers, clients or
users to ascertain the potential market size.
4. Technology: For new technology ventures, we contact
technology and engineering specialists to evaluate the technological
feasibility and
uniqueness of the product or service proposed. For technology-utilizing
new ventures, we determine that the costs of technlogy required to deliver
the product or service improvement are managable.
5. Decision Point - Offer: If Blue Dot Ventures decides to
make an
investment, we prepare a term sheet outlining the deal we propose including
our recommendations for adjustments or enhancements to the business plan
and/or business models,
capital funding schedules, potential strategic partners and details of the
investment.
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