Venture Risk Profile℠

Venture Risk Profile℠Entrepreneurs and investors struggle to evaluate new ventures.  Entrepreneurs are challenged to justify valuation.  Investors are challenged to compare diverse investment opportunities and quantify the required return given a particular level of risk.   The Right Start Venture Risk Profile℠ helps identify the risk factors most likely to impact a new business venture.

The Right Start Solution:  The Venture Risk Profile℠ analyzes new and established organizations across five central risk factors: Team, Customer, Competitor, Technology, and Deal Structure.  Each risk factor is evaluated scored on a quantified scale.  Given the investor’s risk tolerance and return targets, the Venture Risk Profile℠ calculates the required EBITDA and free cash flow targets for the venture.  This allows the investor and entrepreneur to derive the optimal pre-money valuation.

For Entrepreneurs: The Venture Risk Profile℠ identifies high risk areas of the business, allowing the entrepreneur to concentrate efforts on areas where risk reduction most significantly improves pre-money valuation.  The mitigation of high risk areas will increase valuation and increase the probability of attracting qualified investors.

For Investors: The Venture Risk Profile℠ normalizes the evaluation of businesses across different stages of their lifecycles and across different industries and business models.  This facilitates the comparison of different deals based on their risk-adjusted returns so that capital may be deployed to the opportunities with the highest potential for a significant return.

Please contact us to learn more about Right Start’s Venture Risk Profile℠.