Entirely Nonpartisan Selection Process
Rialto selects companies according to a data-driven ratings framework based on the 15 most correlated drivers of business performance, architected by our senior management & advisory team with 80+ years of VC experience.
Each company in our pipeline is rated in-house based on our rubric, back-tested on hundreds of Seed-Series A stage companies in the United States over a 2 year period. Only companies earning a Rialto endorsement at the 90th and 95th percentiles qualify for selection on the Rialto platform.
| Criteria | Rialto Certification™ Standard | Yes | No |
|---|---|---|---|
| Professional Commitment | Company is active and operational (mandatory) plus the management team is currently working on the company full-time | ||
| Pain Point | Pain point validated via firsthand professional experience and/or substantial, quantified market research | ||
| Market Opportunity | Market opportunity greater than $500mm | ||
| Differentiated Expertise | Management team includes at least one Masters or PhD holder and/or has senior experience in target market | ||
| Operating Experience | Management team includes one or more previously-exited founder(s) and/or previously venture-backed founder(s) | ||
| Solution | Solution is defensible via patent or unique competitive advantage (ex: natural monopoly or supply-chain autonomy) | ||
| Market Position | Potential to be a market leader of a high-growth market, lowest cost producer in an established market, or a market leader in a robust niche market | ||
| Business Model | Recurring revenue model, greater than 40% EBIDTA margin opportunity, and/or a platform solution | ||
| External Validation | Accepted to an elite institutional accelerator, a top 20 university incubator program, and/or raised over $50k in external funding | ||
| Customer Adoption | One or more major enterprise partnerships, five or more revenue generating customers, and/or 10 or more pre-launch commitments | ||
|
Selection? |
7 out of 10 or more Yes’s (minimum) | ✔ |