Mount Hood adheres to a set of investment rules that define the companies in which Mount Hood would consider investing.
The characteristics of such companies generally are as follows:
- Management team with relevant industry and start-up experience.
- One or more completed products and annual sales of at least $250,000.
- A pre-money valuation which permits Mount Hood to ultimately acquire a significant stake in the company (generally at least 30 percent).
- A need for between $500,000 and $1.5 million in equity during the expected life of Mount Hood’s investment.
- Headquarters in the Pacific Northwest.
- A reasonable basis to believe that if the company executes its business plan reasonably well, the company could be acquired for $15 million to $30 million within three to six years, or otherwise produce a substantial return to Mount Hood.