Sector-Company Mapping

To slot companies into the sectors given, we follow the following procedure: Columns Product, Business Model and Market Dynamics columns are used to decide the sector to which a company belongs. Company Alpha Decision Point Large, growing market ( Can be one of CRO, or healthcare IT). Product with proven adoption Patient behaviour change through social media. Advertising based sales. Cloud- based tech for provider transactions. Licensing based sales Personalize medicine, new industry Rule based platform that helps clients adhere to standards, consolidated market Secctor Healthcare IT Software

Beta

Point of Care Diagnostics

Gamma

Healthcare IT Software

Delta Sigma

Point of Care Diagnostics Tele-Health Devices

Company Selection Framework

Company selection is based on ratings given to evaluation parameters by Venture Capitalists, as in (1) People Criterion Enthusiasm of Entrepreneur Trustworthiness Expertise Meeting impression Track record Product, Market Criterion Sales potential Growth Potential Quality of product/service Niche market Overall competitive protection Nature of competition

Rank 3 1 2 9 8

Rank 5 6 10 13 11 16 10.2

Average Rank: Financials Criterion Perceived financial Rewards Expected rate of return High margins Low overheads Ability to break even Size of investment Initial market testing costs Average Rank:

4.6 Average Rank: Strategic Fit Rank Criterion 4 Investor Involvement 7 Strength in filling gaps Investor understanding of 15 business 16 18 20 22 14.6 Average Rank:

Rank 18 26 17

20.3

But. based on (2) we recognize that Corporate Venture Capitalists weigh heavily on Strategic Fit rather than other criteria. Accordingly, we revise the average rank for strategic fit to 4.0 and let others remain the same. Thus, we finally use the following Ranks for the broad Criteria: Criterion People Product/Market Financials Strategic Fit Average Rank 4.6 10.2 14.6 4.0

The calculation for final selection is done by assigning ranks to each company across each of the above criterion. Final VC Score for each company is calculated as: VC Score= People Rank/4.6 + Product Rank/10.2 + Financials Rank/14.6 + Strategic Fit Rank/4.0

Company Selection
Based on the formula devised in the previous section, we calculated the best companies for investment as follows: Company Alpha Beta Gamma Delta Sigma People 4 2 5 3 1 Product, Market 3 4 2 5 1

Financials 5 2 4 1 3

Strategic fit 4 1 3 5 2

VC Score 2.51 1.21 2.31 2.46 1.02

Our final recommendation to the CVC is to acquire from the 3 options: 1. Alpha 2. Gamma 3. Delta