The magic venture investing formula is simple: Invest in young, good, innovative, and growing companies while they are cheap.  >>>

Team

The ability of the → Team /→ Management Team to get the job done tops the list of venture capital investment criteria.

Very few innovative startups → get funded by venture investors. The main reason for rejection is that though first-time entrepreneurs or radical innovators may have great technology or business ideas they lack skills for converting these ideas into a successful business. To venture capitalists, "ideas are a dime a dozen: only execution skills count."

Business Model

Many venture capitalists invest primarily in a → business model .

An effective venture concept and business model produces the most sales, the best margins, the → highest net profit and the lowest breakeven. It also produces the highest return on investment and the best liquidity. The risks involved with execution of a good business model are minimized.

→ Venture Financing: Key Documents

→ Startup Business Plan

→ Revenue Model

Sustainable Competitive Advantage

When asked what was the most important thing he looked for when evaluating a company to invest in, Warren Buffet replied without hesitation, "Sustainable competitive advantage“.  >>>

→ Sustainable competitive advantage is the prolonged benefit of implementing some unique value creating strategy based on unique → synergistic combination of internal organizational → core competencies, resources and → capabilities, value-creating products, technologies, processes, and services that cannot be matched by competitors. It is an advantage that enables a business to survive against its competition over a long period of time.

Experienced venture capitalists know that ideas are a dime a dozen, only execution skills count.  Unfortunately, most inventors lack → entrepreneurial and business skills. Few can demonstrate sound skills of converting ideas into a profitable business... More