1. Read Plan/Assess Team. We request a business plan and resumes for all members of the management team. If we see potential, we  meet with the team. looking for key traits of entrepreneurial success, such as an industry track-record, high energy, a sense of urgency, a must-win attitude, intellectual attainments, leadership skills, personal integrity and the proven ability to prioritize and focus. The business plan must demonstrate the company's vision, value proposition, risks/rewards and realistic steps for achieving the plan.

2. Evaluate Market. In addition to our own experience, FunctionIT has developed relationships with many market experts, including CEOs and other key employees of  successful companies in the technology arena. These professionals are invaluable sources of market research, perspective and analysis. .

3. Examine Business Model. We will examine your business model in depth. We have a distinct bias toward business models that offer the potential for high gross and operating margins with relatively low capital investment. Such businesses have higher internally sustainable growth rates than most and are the best candidates for superior return on equity invested.

4. Check References. FunctionIT requires each member of the management team to supply a list of professional references. This enables us to validate their experience, strengths, weaknesses and work habits. This is essential for us to develop a more complete and accurate picture of the team and to supplement it as needed.

5. Call Potential Customers. We make it practice to call a number of prospective customers to determine whether they share your perspective about the business problem you are addressing and see value in your proposed solution. This is an invaluable reality test that will help us refine your product strategy and direct our investments where they produce the greatest value. This also helps promote a focus on customers and their needs that is critical to market success.

6. Evaluate Product/Technology. We must be convinced that your  product is solidly grounded in a viable technology, and that using your product does not require a substantial change in customer behavior. To evaluate technology, FunctionIT does not rely on in-house expertise alone, but contacts appropriate specialists to evaluate the technical and operational feasibility of the entrepreneur's vision.

7. Evaluate Risks/Rewards. We evaluate the pro-forma financials, the likelihood of an exit after a three to five year holding period, and the overall upside and downside prospects. 

8. Negotiate Terms. We use simple term sheets to work out the details of our alliance. These address such things as valuation, number of board seats, ownership stake and the conditions under which we will undertake additional investment. We accept either convertible preferred stock or convertible notes. The agreement is the beginning of a long-term relationship, so it must be a win/win for both parties so we can work together as true business partners.

We hold periodic screening sessions in Miami, Fort Lauderdale and West Palm Beach. Each session is attended by three to five FunctionIT directors and Advisory Board members. You will have 45 minutes to make a formal presentation followed by 30 minutes of Q&A. If you generate interest, we will schedule a follow-up meeting to review your business plan in-depth and begin the due diligence process.