Selection Criteria

The Nutrition Capital Network (NCN) Screening Committee uses the following criteria to evaluate potential Presenting Companies from the nutrition, health & wellness, natural and organic product, and green product industries:

Novelty and Unique Position

A demonstrated point of differentiation
New company or concept for investors; not ‘shopped around’ too much
Potential for leadership in a defined subsegment, channel or niche of some size

Insulation

Protectability of product or service or technology; defense against copycats
Intellectual property: trademarks and patents

Economic Potential

Size and growth rate
Scalability; potential for economies of scale
Profitability; demonstrated gross margins
Exit potential: A variety of interested parties

The Management Team

Pertinent experience of executives: health & wellness, medical, startups, CPG companies, a specific distribution channel and/or marketing & sales
Demonstrated track record in early stage or returning capital
Surrounding team: investors, partners, marketing & distribution alliances, legal team
Star power and charisma; name recognition

Tangibles

Good branding or brand name, good quality & taste, unique packaging or presentation

Intangibles

The “WOW” factor; head turning potential

Stages of Investment

The NCN Screening Committee considers companies at the following stages:

Advanced Stage

Companies that have established revenue, growth and profitability history. Revenues of $20-$100 million or higher and looking for capital for major initiatives, growth, globalization or acquisitions Investments of $10-50 million usually sought.

Second Round or Later Stage

Companies that have already raised structured capital, with revenues of $5 million or higher and looking for growth capital. Investments of $5-20 million usually sought.

First Round

Typically companies beyond proof of concept with revenues of $1-5 million and raising outside or professional capital for the first time. Investments of $2-5 million usually sought.

Start-Ups

Companies engaged in proof-of-concept or “pre-revenue”, typically bootstrapped or funded by family and friends and now ready for angel or early-stage venture financing. Revenues typically less than $1 million and seeking investment of $500,000 to $2 million.

Note:

For a typical NCN meeting, there may be 2-3 advanced companies, 6-8 in second round, 8-10 in first round and 3-4 startups.