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Strawbery Banke by Lee-Ann Larson

North Church by Lee-Ann Larson

Athenaeum by Lee-Ann Larson

eCoast Angel Network
Equity Investment Criteria

Revision 3; January 26, 2004

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 10X invested capital.

Good Fit with e-Coast Angels mission, skills, and interests:

Early stage opportunities in technology, communications, e-commerce, healthcare, and industrial products and services, principally located in the New Hampshire coastal 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.

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