What does a Venture Capitalist Look in a Start-up?

It’s easy to dislike venture capitalist and investors. For entrepreneurship looking for capital to fund their start-up, investors can be hard to find, and when you find them, it’s not easy to get investment money out of their pockets.

But understand them: venture capitalists are taking on serious risk. There are good reasons why venture capitalist are careful when funding early-stage ventures. Here are some of their considerations:


Management is the most important factor that many investors take into consideration. They look at a business management team and its ability to execute the plan of the business. Therefore, if you are looking for venture capital investment, you should be able to provide a list of qualified and experienced people who will play major roles in the company’s development. If a start-up does not have talented managers, it should hire them from outside.

The Market size

Proving that the business will target a large, market is important in attracting the attention of venture capitalist investors. VCs generally want to make sure that their companies have an opportunity of growing sales worth millions of dollars.

Great Products that have competitive Edge

Investors are more interested in funding great products or services with a competitive edge. They look for products and services that consumers can’t do without.


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