The Evaluation Process

First, the new product or service idea usually needs to align with the company’s mission statement and direction in terms of the product line and market area presently being served. Companies like to use their present institutional knowledge to help ensure that the launch of something new will be successful and that synergies will occur. This institutional fit is a criterion used unless the company is trying to reinvent itself, which regularly occurs in the life cycle of any organization.

Second, if the product or service idea needs to be technologically feasible within some time frame, since the venture capital units are usually not the source of funds for research and development, the development costs and time frame ...

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