What We Look For
Start-ups by nature take on more risk. We seek entrepreneurs who have a disproportionate amount of brains are exceptionally talented, demonstrate aggressive business ethics with a compelling business idea but whose talent is squashed due to the inability to finance the idea. We want only "A" teams and founders —entrepreneurs who know what they know and are the best in the world at it. When contacting PineRock Capital keep in mind some of the points that we look for before making a capital investment.
You, your business idea and finances needed
What is the problem you are trying to solve?
Who are you, and why are you qualified to lead this opportunity? What skill set do you bring to this problem? The focus is on you, your business idea,
your goals,and your team.
How much capital will you need to achieve your goal? What is the company status and burn rate? What are your contingency plans if things don't go well
(and they seldom do)? What is your total and operating cash burn (the amount you're spending) per month, in case months stretch into years?
Market / competition:
Do you have a good understanding of the competitive landscape? Is your innovation addressing a need in a large enough market?
Why can't your plan be replicated tomorrow by a competitor?
What pain point are you alleviating for your customer, and why would they pick you? What are their alternatives and what is the status quo?
At this date, what is the status of the underlying business idea? How much further does the business idea need to scale to meet commercial standards?
What is the margin of error if the business idea is underperforming or exceeding the expected cost targets? What needs to be achieved to make your value
proposition compelling?
Capital
What are you looking for from PineRock capital? Why have you sought out us specifically?
Please include your financial projections / P&L / balance sheet / cap table. Accuracy is more important than precision. Contingency planning on the
financials is even more critical. What happens to your financial needs if business idea or market development slips or costs are too high?
What are the milestones that financing from PineRock Capital will achieve? How far are you from being cash-flow positive (in both time and money)?
How many future rounds of financing do you project? What would make your company run out of cash, and what does the worst-case cash flow look
like? For revenue-generating companies, what is your sensitivity to lower-than-expected revenue? Has your revenue ramp been tested? We like to see
quarterly financials for the next eight quarters and annual financials beyond that.
Your business idea today
What customers/users do you have? How have you retained them? How will you increase their number exponentially—and continue to retain them?
What is your go-to-market strategy? Have you identified the right partnerships? Does your price point justify the cost of sale? Why will consumers use
your product over its competitors? What keeps you awake at night? Do you understand your risks? Are they clearly defined, and do you address them in
your marketing or business idea strategy? The quality of your market risk assessment helps us judge how well you understand your market.
