We are genuinely interested in identifying emerging
companies with innovative products that have promising market potential.
A review of our investment criteria and our decision process will help
you make the most effective first contact with us.
The Novus investment criteria outline
the major characteristics we prefer. On occasion, we will modify our
guidelines for exceptional opportunities.
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Business categories:
e-commerce enablement, Internet infrastructure support, Internet
application deployment and application software providers |
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Businesses with
substantial market opportunities |
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Capable, committed and
enthusiastic management team |
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Companies with the
potential to attain high market valuations |
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Cash requirements of
$1 million to $10 million, with a moderate amount of capital required to achieve cash flow break-even |
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Early-stage,
first-round venture financing (after product development, ready
to launch) |
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Companies located west
of the Rocky Mountains |
From initial submission to closing,
our decision process is structured to help us identify and select
high-quality candidate companies that best fit our funding and
participation criteria.
Submitting for consideration:
Your first submission to us should contain an executive summary and a
three- to five-year financial forecast. The summary should present a
concise overview of your business idea, and tell us about you and your experience. A full business plan is
required prior to funding, but at the start we want to know:
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What is the problem your business
solves? |
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How does your solution address the
problem? |
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Who is your customer? |
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What is a reasonable estimate of
your market potential? |
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What is your competitive
differentiation? |
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How much capital will your
business require? |
Materials for consideration must be
submitted to us in hard copy by mail, or by email. Your submission will
be officially considered only when both the executive summary and
financial forecast have been received. See the Contact Us page for
address information.
Our Response
A member of the Novus team will review and evaluate your business plan
according to our selection standards. If your business meets our
criteria, we will contact you and request additional information for our
due diligence process. As a next step, we will also discuss with you the
content needs and scheduling of a presentation of your plan to the Novus
team.
When a business situation requires
immediate attention, we can move quickly. Our working process is
flexible and allows timely, appropriate response.
Our Due Diligence Process
Due diligence reviews are regular parts of our decision-making process.
The review will be led by one of our partners who will contact you
requesting specific information and contacts. At least two of our
partners will participate in the full process, which usually takes a few
weeks to conclude.
Valuation and Term Sheet
When we are interested in investing in a company, we enter into
negotiations by creating a Term Sheet which explains in detail the
proposed investment structure.
A Term Sheet is only an expression of
interest, not a final commitment. It is used to define, clarify and
adjust the investment approach and terms during the negotiation period.
Closing
The closing is the final signing of the legal agreement and paperwork
required to consummate the investment deal.
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