Wolverine Venture Fund Suitability for Consideration Screen

The Fund invests in companies that have achieved progress that is sufficient in their space to attract a priced round of venture capital from an established venture capital firm that will serve as the lead investor and that has a demonstrated history of assembling later-round syndicates similar to the next round that would be needed by the company after the funding of the round in question.

Stage

1. Stage

The Fund invests in companies that have achieved progress that is sufficient in their space to attract a priced round of venture capital from an established venture capital firm that will serve as the lead investor and that has a demonstrated history of assembling later-round syndicates similar to the next round that would be needed by the company after the funding of the round in question.

Investment Size

2. Investment Size

The investment in any one round should be between $50-$150K. The Fund hopes to be able to participate in the company’s later rounds.

Management

3. Management

The management team should have significant expertise in the industry the company is operating in. It also should have management experience and must exhibit commitment to do what it takes to build a large, fast-growing company, including a desire to bring in the employees needed in the future and to step aside or take on a new role if investors believe that is the best path for the company.

Other Matters

4. Other Matters

The Fund must have sufficient time to run its customary processes. The Fund is both an investor and an educational experience for its students. Therefore, although the Fund is likely to be a small investor in any round, the company must commit to giving the Fund access to information and management equivalent in most regards to the information and access to management that it gives other investors.

Clients say they've been impressed with the neophyte VCs. "What struck me most was that they were trying to do it as though they were a real VC firm," says Centromine's Bayoff. "Students went through our product and asked 1,001 questions surrounding market potential, the viability of the Internet, and our competitors. Bloomberg BusinessWeek, 5/21/99