SELECTION PROCESS
The process to select the Greater Richmond's Companies to Watch will occur in four stages: call for nominations, review of applications, company interviews, and selection.
Call for Nominations
The call for nominations is intended to be as inclusive as possible. E-mails will be sent to the contact lists of the Venture Forum, RichTech (fka Greater Richmond Technology Council), Greater Richmond Partnership, Richmond BizSense, and Greater Richmond Chamber of Commerce and other Partners as they are added.
Companies can nominate themselves or be nominated by others. You may nominate companies you think would be good selections. Many service firms like to nominate their clients. If you prefer, you can send an e-mail suggesting the GRCTW contact a company you thik would make a good selection.
A simple-to-use nomination form and application form will be available for next year's event in June, 2010.
Service providers and financing sources will be contacted and encouraged to nominate their clients or contact them to encourage them to apply. As can be seen on the “BENEFITS TO COMPANIES SELECTED” web page, selected companies should receive enormous publicity and benefits from being selected.
Applications, Interviews, Selection
The applications will be reviewed by the Selection Committee, an ad-hoc group of volunteers that will consist of individuals experienced in reviewing and analyzing businesses from multiple industries. Examples include venture capitalists, "angel" investors, bankers, business consultants, and similar professionals. (No practicing accountants or lawyers are on the Selection Committee in a bid to encourage all firms to recommend clients to apply.)
All Selection Committee members agree to keep information received and information discussed confidential.
The Selection Committee will make its selections and forward them to the Venture Forum Executive Committee which will determine the final list.
Selection Criteria
The selection criteria are intentionally broad. The objective of the GRCTW project is to identify those companies that can have a major impact on the local economy and demonstrate that the Greater Richmond area has a vibrant entrepreneurial culture.
The GRCTW list will differ from other awards lists in that it is the only one that looks forward instead of backwards. Other awards are usually based on historical performance and congratulate companies on what they have already accomplished. The GRCTW project congratulates companies not only on past performance, but for their ambition to disrupt an industry, introduce major innovation and take the risk to succeed spectacularly. It is quite likely that some selected companies will ultimately fail because of the high-risk, high-return path they have chosen. Despite picking many pre-revenue and very early stage startups, it is believed that all past selections are still operating.
The following will be given weight when selecting companies:
Geography
A selected company must be headquartered in the Greater Richmond area (City of Richmond, County of Henrico, Chesterfield County, Hanover County, or other community falling in the Richmond-Petersburg Metropolitan Statistical Area).
Ownership
The business must be majority owned and managed locally. Franchisees do not qualify.
Development Stage
While conceivably companies ranging from startups to Fortune 500 could qualify, preference will be given to businesses that are established and growing in revenues, employees and profitability.
Revenues
Preference will be given to businesses that have reached at least a $1 million annual run rate with business models that will allow them to accelerate revenues into the future. Higher revenues will be an advantage; revenues that have peaked or slowed are a disadvantage. Pre-revenue companies have been selected in the past.
Profitability
Preference will be given to profitable businesses that can demonstrate the ability to maintain and grow their profits. If a company is not profitable at the time of application, it must demonstrate that it expects to become profitable based on reasonable assumptions and has the capital to do so. It should be noted that venture capital firms often invest in unprofitable businesses.
Sustainability
While the GRCTW Selection Committee encourages risk-taking, preference will be given to companies that appear to have sustainable businesses in growing industries.
Ambition
The GRCTW project is looking for companies seeking to become leaders in their industry, create substantial businesses, create well paying jobs and become important players in the local economy. Businesses that seek to limit growth – in terms of revenue, jobs and geography – should not apply.
Uniqueness
The uniqueness of a business or business model will be an important determining factor. “Me-too” companies are unlikely to qualify. Innovative companies are preferred.
Membership in Venture Forum or GRCTW Partners
The Selection Committee will give no weight to whether an applicant is a member of The Venture Forum and/or other GRCTW partner organizations. In fact, the Selection Committee is likely to consist of a majority of non-Venture Forum members. The GRCTW project specifically wishes to avoid any appearance of granting preferences.
The above criteria are highly subjective and the Selection Committee will have broad discretion to use its best judgment in selecting the Greater Richmond’s Companies to Watch.
