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|
|7 out of 10 or more Yes’s (minimum)||✔|