HVV's Investment Committee works to source high quality investments throughout the Penn State community with a specific focus on seed-stage funding.
Members of the Investment Committee utilize HVV's partnerships and resources to meet with several entrepreneurs every week. Initial due-diligence is performed following the meeting and members of the IC present their findings to the executive board and advisors during weekly investment meetings. Companies are evaluated based on several criteria during the initial screening process, including:
Management - Do the founders have an unwavering desire to solve this problem? Why are they the best team to pull it off?
Industry - Does the target company operate in a high-growth industry that aligns with HVV's expertise?
Quality & Uniqueness of Idea - How feasible is the company's product/service and business model? Does it differ from that of competitors? Can it be replicated?
Growth Opportunities - Does the target company's management team have a clear vision for the future? How can HVV add value?
Exit Potential - What is the expected time horizon for HVV to recoup its initial investment? Through what means can LPs expect an exit (e.g. through acquisition, dividend recap., etc.)
Students and advisers vote to determine the company with the highest investment potential to continue to final due diligence phase. A comprehensive analysis into the company's business model, industry, competitive landscape, marketing efforts, valuation, and management team is performed prior to additional meetings with the founder(s). After final due-diligence is completed a decision is made whether to invest or to not proceed. If HVV opts to invest in the company, a Letter of Intent will be provided and deal terms will be negotiated and laid out in a Term Sheet.