The Bell-Mason Diagnostic for (Venture Capital) Investing

The Instrument

  • Space
    • 12 dimensions
  • Time
    • 4 stages, company development
    • 7 sub-stages, product development
  • Quantification
    • rules => yes/no
  • Visualization
    • a graph

Space

  1. Business Plan
  2. Marketing
  3. Sales
  4. CEO
  5. Team
  6. Board
  7. Cash
  8. Financeability
  9. Control
  10. Technology/Engineering
  11. Product
  12. Manufacturing

Time

  1. Concept
    • 0-12 months
  2. Seed
    • 3-12 months
  3. Product Development
    • 12–48 months
  4. Market Development
    • 24-48 months
  5. Steady-State
    • exit => IPO
  • Stage-to-stage transition => event-based state-transitions
    • continue in the state
    • exit the state
    • cease operations
    • etc.
  • Sub-state model of product development
  1. Product Development
    1. Hire & Plan
    2. Alpha Test
    3. Beta Test
  2. Market Development
    1. Calibrate the Market
    2. Market Expansion
    3. Steady-State Operation

Quantification

  • Heuristic -> Rule -> Question
    • e.g. is there a design walkthrough or code review process?
  • Staged Evolution of Questions
    • questions & level of detail appropriate to the stage
  • Standard Questionaire

visualization

In the form of a Kiviat diagram.

Mentions

  • “You don’t have to understand the technology to ask the right business questions”
  • Companies that scored 75 or higher had a business success rate of 95%; slide 26.
  • Justification
    • Factory-like, repeatable, optimizable => executable by lower skill units
    • Similar to Medical Schools
    • Alternatives
      • Case based => Biz School
      • Statistical Factor Analysis

Sources

Via: backfill

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