Appraisal Criteria
Applications are appraised as investments and decisions are made on a strictly commercial basis. Only projects that demonstrate the potential to raise follow-on investment, expand rapidly to revenue and generate a new high growth company for the region will be considered.
Criteria used when appraising applications are:
Technology
Technology that has the potential to have a disruptive impact, either in new or existing markets, will be given greater consideration over a technology that is an incremental improvement to the state of the art.
Markets
The idea should be market-driven rather than technology-led. The potential size, geography and competitive environment in target markets are key factors. Whilst it is recognised that an application may be to assess these factors, an initial analysis must be communicated in the application to enable us to evaluate the idea.
People
As with any form of investment, people are key. In many cases the team may have limited business or management experience, but this will not be regarded as an obstacle to investment if the team plan to develop or access management expertise/mentoring.
Intellectual Property
Globally granted patents are unlikely at this stage of investment but the potential for a secure proprietary intellectual property position is important. You should also demonstrate an awareness of competing or relevant intellectual property that may impact on the commercial success of the proposed project.
Access to Finance
The Fund will accept high levels of investment risk. Applicants who are sufficiently well established to seek conventional debt finance via banks or have access to significant working capital will be viewed less favourably than earlier stage propositions.
Contribution to Regional Development
A primary objective of the POC Fund is to transform the climate for technology and early stage business investment in the region. Investments are helping to catalyse innovation from the North East’s science and technology base, in both academia and the business community. Applicants who are “inward investments” must meet the basic eligibility criteria and commit long term to the region.
