Criteria:
To be considered for investment, a seed
stage company must satisfy certain criteria:
Selection Criteria.
To be considered for investment, a seed
stage company must satisfy certain criteria.
Most importantly,
- There must be a demonstrated
and significant market need for the technology
upon which the business is built;
- The technology must be the solution
that the market is looking for and must
be adequately protected by patents, trademarks,
copyrights, etc.;
- The solutions being offered by competing
vendors or technologies must be inferior
or inadequate;
- The potential company revenues and financial
returns to UTSF must be significant.
The synthesis of
these and other factors must create an attractive
offering that justifies the selection of
a particular company from among the other
potential candidates that UTSF may consider.
Process.
Some entrepreneurs contact us directly,
although frequently we receive referrals
from community professionals, for instance,
someone at High Tech of Rochester or at
Greater Rochester Entreprise, a Tech Transfer
Officer at one of our local universities,
or one of the many community lawyers who
specialize in start-up companies. Contacts
or referrals can lead directly to a first
meeting with the UTSF managers in which
the entrepreneurial team presents their
technology and business opportunity. If
the opportunity sounds compelling, we'll
likely request a site visit or demonstration
of the technology and commence due diligence
to validate the opportunity. The project
will be reviewed in detail with the entrepreneurial
team as well as with objective industry
experts and/or potential customers.
If the evaluation
is proceeding favorably, we will submit
a draft term sheet contingent upon completion
of due diligence. The term sheet will detail
the amount of funding that the company will
receive and the amount and type of equity
required in return by UTSF. If necessary,
the company's need for business services
can also be discussed as part of the term
sheet negotiation.
Useful Information:
For entrepreneuers who have never been through
the venture investing process, we suggest
a quick read through one of our white papers
entitled "Before
the Negotiations." Any entrepreneur
familiar with the concepts and terminology
explained in this paper should be more comfortable
and effective in any negotiation process.
Contact Us.
This is an exciting time to be in Upstate
NY. There's a buzz about transforming our
area from big company towns into a high
tech hub region. The formation of start-up
companies based on new technologies is being
promoted by many community entities and
suddenly entrepreneurship is hot. Since
UTSF's close in late 2002, the quantity
and quality of our deal flow has increased
significantly. We're seeing more and better
opportunities. But like any other venture
capitalist, we are always looking for our
next big deal.
If you have a technology
and a business concept that meets the criteria
described above and would like to initiate
consideration, please submit
your information here or contact us
through a community professional.
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