Core Requirements for Potential Investments

Your company's management team must demonstrate a clear, strong vision and excellent execution capabilities. This includes an understanding of the suppliers and contractors who will be necessary to develop your business, if these relationships are not already in place.
In addition, the company must have meaningful revenue (i.e., proof of concept).
We work with entrepreneurs who are fully committed to the success of their venture. This means we evaluate the experience, unique talent and determination of the individuals in whom we invest. We spend full time on our investments and expect the people we invest in will do the same.
We seek companies that have sustainable competitive advantage. Companies that have secured protection for their intellectual property, or who have filed for this protection, are preferred.
The valuation of the company must be reasonable.
We seek early-stage companies who are in their first professional investment round. We seek out companies that could profit from our business experience. We do not seek control of any of our investments. Marketing 1to1^® Ventures, LP may hold a Board position to ensure our ongoing participation in the development of the business.

Evaluation Criteria

In our evaluation meetings, these are some of the factors that we consider in our prospective investments:

Uniqueness: Does a product or service hold a unique position in its market that is sustainable?
Knowledge of competition: How well has the new venture positioned itself against the position of other companies in its target market, as well as its position relative to indirect competitors who could become a threat in future, even if they are not today?
Quality of financial projections: How reasonable are the financial projections? How did the company arrive at a valuation? What are the assumptions behind its revenue and expense projections?
Quality of sales and marketing plan: How reasonable and well thought-out is the sales and marketing plan?
Quality of management: Who will run the business? Are key positions filled by people who are qualified to perform the required duties? Do the people have a track record of past success? Which if any key positions left unfilled?
Nature of exit plan: What is the venture's exit strategy? Is the goal an IPO or profitable sale should an appropriate offer be made? What exit time frame is planned?
Overall potential for success: How likely is this venture to succeed, based on an assessment of a combination of the above factors?
1to1 attributes: Has the company incorporated 1to1 marketing principles into the business? Has it recognized the changes going on in every phase of business as a result of 1to1 marketing on the Web? How will it manage customer relationships? How will its product or service change to meet the needs of individual customers and how can the company build a learning relationship with its customers?
Social aspects: Is the company managed or owned by minorities or women? Is the company located in a low or moderate-income area? We actively seek companies in underserved markets.

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