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Key Factors that improve

the Success Potential of a Start-up

Success Factors
Factor Management Description Years of operational experience in a similar industry Startup experience with a similar business model that led to a successful exit Willing to be coached

Success Factors
Factor Market Description Addressable market that is fragmented and growing Customers already lined up

Success Factors
Factor Technology Description Patent protected Creates strategically defensible position

Success Factors
Factor Competition Description Shows that company has some competition, regardless of product or service Clearly summarizes competitors and key threats

Success Factors
Factor Business Model Description Similar to one or more used by successful companies Demonstrates that customers have real pain that product or service solves (must have vs. nice to have)

Success Factors
Factor Exit Strategy Description Identifies target acquirers Shows deal history of acquisitions and IPOs with key financial multiples and ratios

Success Factors
Factor Risks Description Objectively assesses risks and describes actions to reduce, mitigate or eliminate them

Success Factors
Factor Financial Projections Description Shows conservative, expected and targeted figures with assumptions for each

Focuses on cash flow and profitability

Success Factors
Factor Capital Structure Description Detailed Preferrably shows ownership by founders and only small numbers of unprofessional or inexperienced investors

Success Factors
Factor Investment desired Description Places an offer on the table - indicates valuation Shows uses of funds in detail Details expected future rounds and uses of funds from each round