The ideal equity investment opportunity would have the following characteristics:
An Experienced Core Management Team:
(Not necessarily a complete team) with relevant success in developing similar technology, starting up new businesses, and penetrating similar markets.
A Significant Market Opportunity:
A market opportunity sufficiently large to create a business with revenues greater than $25 million within 5 years.
A Thorough Understanding of the Dynamics of the Marketplace:
Exciting, unique products or services that meet important customer needs, obsolescing existing alternatives.
A Convincing Business Plan:
A compelling, well-articulated strategy for capturing and defending a significant market share, including key execution milestones.
An 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.
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 $5MM, with little or no need for additional private equity financing. Alternatively, a credible ability to accomplish significant business milestones that will attract the next funding level.
Believable Exit Strategy:
A credible, multi-option exit strategy, achievable within 5 years, with an ROI of at least 5X invested capital.
Good Fit with eCoast Angels Mission, Skills and Interests:
Early stage opportunities in technology, communications, e-commerce, healthcare, and industrial products and services, principally located in the New England 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.