Questions:
• Where is your business in the venture creation process?
• What is the right sequence of steps in commercializing technology?
• What are the key questions, deliverables, and resources associated with each step
of the commercialization process?
• How would an investor classify your stage of development?
Description: The
Venture Readiness
Model is a self-assessment tool to analyze the progress an entrepreneur
has made in the commercialization or business development process. Originally developed
to transfer technologies from NASA and Federal Laboratories, this and the accompanying
tools are widely used by state and local organizations focused on technology-based
economic development and new and existing companies in commercializing technology.
The
Venture Readiness Model is based upon a
Commercialization Model used nationally and internationally to assist 1000s of new
startup and existing companies commercializing new products. The survey generates
an overall Venture Readiness Level
(VRL) consisting of the Technical
Readiness Level
(TRL), Market Readiness Level (MRL), and Business
Readiness Level
(BRL) of the commercialization process. The
Venture Readiness Level will assist entrepreneurs and existing companies
in strategizing their commercialization plans. A complete narrative description
of the commercialization process accompanies this tool.
Purpose: The
Venture Readiness Model
1) identifies the entrepreneur’s progress in the commercialization process; 2) assists
in developing a go-forward commercialization strategy; 3) identifies appropriate
sources of financial capital; and 4) provides sources of business resources.
Directions: The tool consists of a technical, marketing, and business
survey associated with each step. Begin by clicking on “Step 1” followed by “Step
2-18.” Answer the survey questions associated with each step. Stop on any step where
all the answers are “No”.
Score: The survey will generate scores for the Technical Readiness
Level, Market Readiness Level, Business Readiness Level and overall Venture Readiness
Level. The following Venture Readiness Levels correspond with the following investor
stages:
VRL 0.0-1.0, concept-stage; conceptual model
VRL 1.0-2.0, pre-seed stage; working model
VRL 2.0-3.0, seed-stage (no product, no revenue); engineered prototype
VRL 3.0-4.0, early-stage or A-round (product, no revenue); pre-production prototype
or initial production VRL 4.0-5.0, mid-stage or B-round (product and revenue); full
production
VRL 5.0-6.0, late-stage or C-round (growing market share) full production
Using the Tools: The
Venture Readiness
Model is one of several tools to assist entrepreneurs and investors in evaluating
the status, quality, and value of a startup or early stage ventures. Database support
for these tools are based upon national venture capital funding averages by stage
of development, generally expected investor rates of return, and expertise gained
from direct interaction with hundreds of startup and early-stage angel and venture
capital financed business ventures. The recommended sequence for using the
Readiness
Level Tools is as follows:
- Entrepreneurial Readiness Survey
- Risk Readiness Survey
- Venture Readiness
Model
- Business Plan Readiness Survey
- Venture Valuation
- Capitalization
Table.
The Entrepreneurial Readiness Survey is FREE so give it a try, or click here to subscribe to the full Readiness Level Tool Set