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iRubric: FINAL: Seed/Early Stage Company Evaluation rubric

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FINAL: Seed/Early Stage Company Evaluation Seed/Early Stage Company Evaluation Rubric to evaluate a startup business in the seed/early stage, to see if they should move forward. This will be used in the University of Calgary CDL program. Importance of identifying firms that will be most likely to attain financing and complete a business plan. Rubric Code: XXB2824 By Schenley Ready to use Public Rubric Subject: Business Type: (Other) Grade Levels: Graduate

Evaluating Seed/Early Stage Firm
	Not Done/ Major Gap 0 pts	Major Gap, Uncertain Potential 2.5 pts	Managable Gap, Needs Development 5 pts	On the Right Path 10 pts
Gaps in Strategic Direction
Business Idea 1 % Business idea can be pivoted; therefore we put more weight on technology and team.	Not Done/ Major Gap Business idea is not done and/or does not make sense and/or has been done by others and failed.	Major Gap, Uncertain Potential Business idea is not crystalized but could be directed with a lot of help.	Managable Gap, Needs Development Business idea is faily clear and unique, and the company seems to understand the gaps in their knowledge.	On the Right Path Business idea is faily clear and unique, and the company seems to understand the gaps in their knowledge, and have started a plan to fill these gaps.
Vision 3 % Long-term vision is important; however, if they have been misguided, but have a great team and technology, this can be altered through the program.	Not Done/ Major Gap No long-term vision or very poor long-term vision. Uncertain if assistance could pivot the vision for success.	Major Gap, Uncertain Potential Poor long-term vision, but could be altered for success with a lot of help.	Managable Gap, Needs Development Fair long-term vision.	On the Right Path Great long-term vision.
Product or Service
Mininmum Viable Product Completenes 12 % We believe having a MVP, or at least a detailed idea and timeline is very important because we cannot start selling or marketing something that does not exist; a company with a MVP would be a better fit for this program.	Not Done/ Major Gap Nothing has been done, or no response. At the idea stage.	Major Gap, Uncertain Potential Some work has been done. Prototype is not ready and will take more than 6 months to complete.	Managable Gap, Needs Development Started or done, but needs more R&D to be fully functional. Will take less than 6 months to complete.	On the Right Path Done, or started and will take less than 3 months to complete.
Technology 8 % A misrepresented or unclear description of the technology will lead to business failure, and would not be appropriate for this program.	Not Done/ Major Gap No Technology or very unclear and/or misrepresented Technology.	Major Gap, Uncertain Potential Some technology, but unclear description and/or requires a fair amount of R&D; could be completed through the CDL program.	Managable Gap, Needs Development Interesting Technology; may need more R&D.	On the Right Path Interesting Technology; ready for marketing.
Marketing Potential 5 % Marketing needs to be tied into the other sections such as target customer and market. Though this can be pivoted, if they have the wrong customer segment outlined, their vision for the business is also usually wrong.	Not Done/ Major Gap Completely unclear description.	Major Gap, Uncertain Potential Preliminary description but slightly unclear, which will cause communication problems. Could be altered with a lot of help.	Managable Gap, Needs Development Understandable description, but needs work. Mostly consistent with other sections.	On the Right Path Complete and up-to-date description, where the gaps in knowledge are highlighted, and a preliminary plan has been formed that is consistent with other sections.
Personnel
Founder(s) Background/Need from CDL 5 % The founder is the leader; knowing that they understand the business and are equally as understandable and communicative is important for the success of a firm.	Not Done/ Major Gap Founder has no background in the business and has no clear understanding of where the gaps are in their company and vision.	Major Gap, Uncertain Potential Founder has understanding / background in the business; they also seem to understand the gaps in their knowledge and vision. Assistance with Fellows could prove very helpful, but a lot of work needs to be done to find the right guidance.	Managable Gap, Needs Development Founder understand the business for the most part. Needs, and knows they need, specific help with items the CDL Fellows and students could impact.	On the Right Path Founder is an expert in the business sector, has a clear understanding of what they need from the CDL program, with specific gaps recognized, and the start of a plan to achieve this.
Management Team 15 % The management team is HUGELY important. A great management team/founders can make a bad idea work, but a poor team can ruin a great idea. This is very important to angel investors and VC firms.	Not Done/ Major Gap No team. Or founder spends part time on this business.	Major Gap, Uncertain Potential Equivalent of one to two full time team members.	Managable Gap, Needs Development Two or more team members with sufficient expertise.	On the Right Path Solid team covering all aspects of business.
Advisor(s) 2 % The CDL team can help find appropriate advisors.	Not Done/ Major Gap No advisors.	Major Gap, Uncertain Potential Wrong advisors. Advisors do not look like they will add any value to the project, but the CDL program could assist in finding new advisors.	Managable Gap, Needs Development Two or more advisors with sufficient expertise.	On the Right Path Solid advisors covering all aspects of business.
Customer Segment
Target Customer/Market 10 % Knowing who their target customer may be is important as it speaks to their understanding of WHO they are solving pain for, which should direct the company and the channels they use to better understand their future plans.	Not Done/ Major Gap No target customer/market discussed.	Major Gap, Uncertain Potential Wrong target customer/market presented, or target is overexaggerated. CDL program could provide the right guidance with a lot of work.	Managable Gap, Needs Development One, or more than one potential customer/market presented, but has gaps in size or share available.	On the Right Path Detailed customer/ marketsegment explained, with research that validates their decision.
Barriers to Entry
Amount of work 10 % Important because we want to know these founders are serious about moving this idea forward. Number of hours worked and stage is important here.	Not Done/ Major Gap Some work has been done, but can be easily duplicated.	Major Gap, Uncertain Potential Some work has been done; unsure of duplication potential.	Managable Gap, Needs Development Some work has been done. Duplication of work would requires R&D by other companies.	On the Right Path A lot (one year or more) of work (R&D, testing, deployment) has been done. Seems like it would be hard to duplicate the work.
Patentability/ Patents 7 % Having a patent is les important than knowing you can patent; the CDL program can help with this.	Not Done/ Major Gap Patented by others. Prior patent exists which will be a barrier to this firm and/or no patents.	Major Gap, Uncertain Potential Possibility of patent protection and/or patent drafts completed or in process, but not applied.	Managable Gap, Needs Development High patentability potential. Need more research and/or provisionary patent filed, or patent application in process.	On the Right Path Definite patentability potential and/or has one or more patents
Customers 7 % Already having customers lets us know there is at least some demand; however due to the stage these firms are in it's less important than some other factors.	Not Done/ Major Gap No customers.	Major Gap, Uncertain Potential A few customers or potential customers.	Managable Gap, Needs Development Some customers.	On the Right Path Enough customers to make entry by others difficult.
Financials
Investors 2 % Not as important as we're dealing with seed/early stage companies.	Not Done/ Major Gap None, negligible. Idea stage with no outreach.	Major Gap, Uncertain Potential Founders money and/or grants.	Managable Gap, Needs Development Founders money and/or grants plus some investors.	On the Right Path Investors have pledged money.
Revenues 2 % Not as important as we're dealing with seed/early stage companies.	Not Done/ Major Gap None, negligible. No potential.	Major Gap, Uncertain Potential Little or none, with uncertain potential of revenues; with help from the CDL program company could be a success.	Managable Gap, Needs Development Some, with potential.	On the Right Path Some, with high potential.
Formation / Structure 1 % Not as important as we're dealing with seed/early stage companies.	Not Done/ Major Gap None or DBA. Note: DBA often precedes the name under which a business operates that is not the legal name of the owner of the business, but a name sometimes called a fictitious name or trade name.	Major Gap, Uncertain Potential Improper understanding of how the business structure would work. Needs overhaul and/or has not mentioned what kind of company they would be forming. Could work with a lot of hep from the CDL program.	Managable Gap, Needs Development Mentions the kind of business structure they are going to be. Needs to go through process of achieving legal business type and/or their structure is discussed but needs minor change (e.g. from S to C corp, or from LLC or corp or vice versa).	On the Right Path Correct business structure for this type of company, are a legal business type.
Market / Industry
Penetrability 5 % This is important as it could dictate how long it might take a company to find a place I the market, as well as dictate capital expenses needed.	Not Done/ Major Gap Unpenetratable market or industry (e.g. Airlines).	Major Gap, Uncertain Potential Hard to penetrate market or industry, but idea could be pivoted and gain traction with a lot of guidance in the CDL program.	Managable Gap, Needs Development Penetratable market but with some difficulties. Unique product may allow for penetration.	On the Right Path Easy to penetrate. Ripe market.
Market Saturation 5 % This is important because if the market is saturated, the company is going to have to push huge amounts into marketing, which is a capital need many angel investors may nit trust.	Not Done/ Major Gap Over saturated market with huge competition (e.g. social networking). No room for entry and/or has not outlined any competition.	Major Gap, Uncertain Potential Fairly saturated market and/or small room for entry but they have the funds to market and/or a huge differentiator that will allow them a specified piece of the market not being served. Will take a lot of guidance from CDL.	Managable Gap, Needs Development Mainly unsaturated market. Sufficient room for entry. Needs to work on how they will defend their product, but could be done.	On the Right Path Lightly serviced market. Lot of room for entry. Has outlined competition, and understands how to defend their product or service.

Keywords:

Business, investor, seed funding, angel investor, financing, entrepreneurship, VS, Angel Investor, Investment, Business Plan

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