The screening process of an angel investing group based in Massachusetts was investigated by analyzing review sheets for screened business proposals that were submitted in 2004. The primary reasons for rejection were ascertained for companies that did not pass into the presentation stage of deal assessment. Rejected companies were contacted in 2007 to determine the operational status, profitability, post rejection action, and source of alternate funding. Data showed that greater authority was given to screeners with industry specific expertise. Weak business plan, high competition, and a lacking market were the most highly cited reasons for rejection. Lastly, there was a significant survival rate for rejected companies due to the plethora of alternate funding sources.
Worcester Polytechnic Institute
Interactive Qualifying Project
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Chemistry and Biochemistry