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Internal Due Diligence

Our internal due diligence process is designed to answer the question, “Does it make sense to go ahead with the new venture?” The answer to this question forms the basis of the business framework in assessing viability, risk and investability of the new venture and allows us to formulate the right strategy in taking it forward.

The internal due diligence process starts with an initial meeting with the New Ventures Team where we review with you a detailed questionnaire to help us understand the merits of the technology and/or invention. The session focuses on initial evaluation of the concept in four areas: technology, market, risk (financial and legal) and team. Each category is scored on a 1-5 scale. The outcome of this exercise allows us evaluate the following: Studying the Technology • What is the technology and the market landscape? • What is the current stage of development? Is it being utilized now? • What is the status of intellectual property (IP) protection? • How much investment will be necessary to bring the technology to market? Defining the value proposition • What value does the product or service deliver to the customer? • Which one of the customer’s problems are we helping to solve? • Which customer needs are we satisfying? Analyzing the Cost Structure • How much does it cost to produce? • What are the cost drivers? • Is there scope for optimization and scalability?

Our due diligence process is a two part exercise in which we not only perform a rigorous “in-house” review, but also engage members of the business community to provide their in-sights into investability of the new venture.This is an important step which determines the future course of action as it relates to new venture creation.

Validating the Revenue Model • How will the venture make money? • What can we charge for the product or service? • Can the revenue model be benchmarked with existing market offerings? • Are there multiple revenue streams? If yes, what are the various contribution margins?

Assessing the market and competitive forces • What is the estimated total addressable market? What are the expected growth rates? • Who are the competitors and what is the competitive advantage? • Who is the end customer? Is the product or service currently being sold? If so, what are the revenues and volumes? Understanding Team Dynamics • Does the team have the necessary experience it takes to deliver what it has set out to do? • Does the team have the insight to identify its own weaknesses and hire good people to complement them? • Can the team constructively deal with all the challenges that are and will occur during the life-cycle of the new venture?

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CTTC New Ventures Process  

An indepth look at how CTTC's New Ventures Team helps Vanderbilt entrepreneurs and inventors navigate the entrepreneurial process.

CTTC New Ventures Process  

An indepth look at how CTTC's New Ventures Team helps Vanderbilt entrepreneurs and inventors navigate the entrepreneurial process.

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