Introduction Guide to Applicants Appraisal Criteria How to Apply FAQ

Appraisal Criteria

Applications are appraised as investments and decisions are made on a strictly commercial basis. Only businesses that demonstrate the potential to raise follow-on investment, rapidly expand revenue or generate a new high growth company for the region will be considered.

Applications will be judged against criteria for each different stage of a business: Growth, Project, or Start-up. However in general successful applicants are likely to demonstrate:

1. Talent
   There are two areas of talent that should be part of an application:
• Creative talent should be exhibited in the quality of innovation within the business idea.
• Commercial talent should be exhibited through previous experience and success, or the endorsement of the business ideas by current or potential commercial partners. e.g. orders for products, agreements to distribute, expressions of interest in IP, funding agreements, access to technology agreements etc

2. Stage of development
• A realistic assessment of the stage of development of the technology or concept, and a plan to complete or acquire any stages that are missing. 
• A declaration around IP and any other parties who have a stake in the IP.

3. Commercial attitude
• An understanding in the individual or team applying that the funds are to be invested on a commercial basis.  That the finance is in the form of a convertible loan this will be reflected in financial projections.
• A market which indicates sufficient size to justify further investment.
• A commercialisation plan which indicates an ambition to raise further funds that would trigger a conversion from loan to equity or a clear payback plan with a return of profits from a project.
• A view on how NStar might exit its investments.

4. Design and creative impact
   An indication of the impact of the design or creative input on the IP retained within the business.

5. Route to market
   A plan for taking the product or service to market.

6. Business Structure
   We will only accept applications from companies limited by share or teams and individuals who will start companies limited by share. 

7. Previous Business Support
   A declaration of previous funding received in order for our investments to comply with state aid rules and any ongoing business support.

8. Regional location
   The business must be located and trading from the North East region as defined by One North East.