Typical Investment Risk Profile Chart

Select the button to the right of each statement that best decribes the company

Risk Rating Minimal Risk Limited Risk Average Risk Above Average Risk High Risk Very High Risk
Company Perspective Mature stable company with a strong overall financial situation. Investment requires minimal monitoring.   Company with good overall financial situation. Investment requires some monitoring.   Company with an acceptable overall financial situation. Regular monitoring is required.   Company with some financial deficiencies or is incomplete or unproven. Requires close monitoring.   Company with weak or unstable financial situation. Requires turnaround level of monitoring.   Company with insufficient financial justification for the proposed business. Likely a start-up.  
Management Team Proven skills. Full management compliment. Strong Team, experienced in working together.   Proven skills. Have not worked together in past. Strong team in place.   Good skills, team may be missing one component but still good.   Deficient skills or management team. May be inexperienced.   Deficient with key skills or personnel missing. Incomplete management team or no team.   Entrepreneur with little or no management team identified or inexperienced entrepreneur or team.  
Product / Service Unique products with proven track record   Unique product or service with proven record.   Product or service with proven record.   Little or no track record, only one or two sales.   Little or no track record, no sales.   Incomplete product. Proof of concept stage. No track record. No customers.  
Technology Patented or very difficult to copy. Window > 1 year   Patented or very difficult to copy. Window >1year   Technical advantage of at least 6 months.   Limited tech advantage, less than 6 months.   Limited tech advantage, less than 6 months.   Unproven tech, no patents.  
Market Size Well-defined market being very large market – big potential opportunity.   Well-defined large market opportunity.   Well-defined medium market opportunity.   Not well -defined market, unclear opportunity.   Poorly defined / unclear market opportunity or a very small market.   Unproven market or no market analysis conducted. No market testing.  
Sales Plan Execution Strong sales plan. Strong marketing plan. With actual results.   Strong sales plan and marketing plan with actual results.   Good sales plan and marketing plan with limited results.   Poor sales plan and marketing plan with very limited results.   Poor sales plan and marketing plan with no results. Unproven.   No sales or marketing plan.  
Revenue Model Viability Large revenues, proven model, profitable   Solid revenues, proven model, profitable   Some revenues, proven model, break even.   Few revenues, proven model, break even or loss.   No revenues, unproven model, start up.   No revenues, no pricing plan, no models, start-up.  
Competition Limited or very few. Compelling differentiators.   Limited or very few. Compelling differentiators.   Limited or very few. Compelling differentiators.   Limited or very few. Compelling differentiators.   Limited or very few. Compelling differentiators.   Incomplete. Competition unknown, differentiation unproven.  
Strategic Partnerships At least 5 signed agreements.   At least 3 signed agreements.   At least 3 signed agreements.   Few agreements. But negotiations underway.   No agreements. Prospects identified.   No agreements and no prospects identified.