When evaluating startup investment opportunities, NBIF looks at a company’s product, market, team, and financials. The following are insights into our evaluation process:
- Innovative product with the potential to scale rapidly
- Intellectual property is necessary for some ventures but not all
- Billion-dollar market with a realistic initial target market
- Export focus outside of Atlantic Canada
- Focus on “bottom-up” market validation from customers
- We Invest in people first!
- Prefer at least two co-founders, but will invest in a single co-founder
- A well-rounded team, or a plan to create one
- The team must be in New Brunswick
- 12-18 months of runway
- Three-year financial projections with monthly detail for the first year, and quarterly detail for the following two
While initial seed capital will help get you started, you will probably need to raise another round. As an early-stage investor, we like to see a plan towards raising additional rounds of financing. In particular, we would like to see milestones that will create a path that will allow you to raise larger rounds of financing at a higher valuation.
Much More Than Money
At NBIF, we aim to be more than just money. We aim to be smart money.
As business partners, our investment team offers continued support to our portfolio companies. This can include introductions to other venture capital investors, guidance with financial projections, investor presentations, along with governance and advice through a seat on the startup's Board of Directors. As well, NBIF has recently established strategic partnerships with Amazon, Deloitte, and Hubspot to offer free AWS credits and heavily discounted accounting software and CRM services to our portfolio companies.