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Nutrition Capital Network Research & Surveys
Throughout the year, Nutrition Capital Network (NCN) conducts surveys to keep abreast of investment trends in the nutrition industry and issues of importance to Investors and Presenting Companies.
Spring 2009 Online Survey
Attributes Valued by Investors and by Presenting Companies
Investor Reponse
How important do you believe the following attributes are to investors when they evaluate start-up or growth companies in the health & wellness industry?
|
|
Most Important |
Very Important |
|
Potential for high rate of return on the investment |
55% |
46% |
|
Management team with a successful track record |
46% |
46% |
|
Unique type of product or ingredient |
33% |
50% |
|
Personal connection with Management team |
25% |
58% |
|
Keeping the founders/managers in the game with equity |
18% |
46% |
|
Intellectual property protection or patents |
18% |
36% |
|
Scientific or clinical data/claims for product efficacy |
9% |
55% |
|
A clearly defined exit |
9% |
55% |
|
Mission or non-commercial purpose/motivation of mgmt team |
8% |
50% |
|
Product type that matches their portfolio mix |
9% |
46% |
|
Protection in case the business does not develop as planned |
0% |
46% |
|
A low valuation or a ‘bargain’ |
0% |
9% |
Company Presenter Response:
When a growth or startup company in the health and wellness sector considers whether to partner with an investor, how important are the following attributes?
|
|
Most Important |
Very Important |
|
Your personal connection with investor team |
50% |
33% |
|
Keeping you as founders/managers in the game with equity |
36% |
55% |
|
Strategic interest in your industry |
27% |
55% |
|
Successful track record of growth with other investments |
30% |
40% |
|
Specific experience in your industry or product category/niche |
27% |
27% |
|
Willingness to do a second round |
18% |
46% |
|
Mission or non-commercial purpose/motivation of investor team |
8% |
58% |
|
Flexibility in amount or timing of investment |
9% |
46% |
|
Patience in holding the investment |
9% |
46% |
|
Clearly defined exit for you and the investor |
9% |
36% |
|
Well stocked portfolio of companies currently under management |
10% |
30% |
|
Generous valuation |
0% |
36% |
|
Hands-off approach |
8% |
17% |
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