ENTREPRENEURIAL ANALYSIS

At RENN Capital Group, we use a variety of research and analytical tools and techniques to guide our investment strategies. Our state-of-the-art techniques provide a balanced look at a potential portfolio company's risk-reward profile. Our due diligence process includes some or all of the following: (i) management interviews, (ii) background checks, (iii) financial statement analyses, (iv) reviews of company forecasts, (v) valuations, (vi) negotiation of terms, (vii) personal and professional reference calls and (viii) discussions with customers, vendors, partners and other interested parties. After an investment has been made, we don't just monitor the company and its progress. We frequently play an active role in shaping the company by assisting management and the board of directors in making important strategic, operational and financial decisions. We believe we can add value to our portfolio companies, not only with the checks we write, but with the experience we have in guiding similarly situated companies along the path to success.

Our investing style is backed by multiple years of research into the performance of companies based upon the amount of ownership the CEO has invested in the company. RENN Capital Group analyzed the performance of 463 small-cap companies whose CEO owned a portion of the company and found that the higher the percentage of ownership a CEO has, the more likely that company is going to be sucessful, which is depicted in the chart below:

Words of Wisdom