One of the keys to success in raising money for a venture it to really understand how the various sources of funding think, what their expectations are, and how they make decisions. This is true for bankers and investors.
There is a good article that was just posted at Wharton’s web site, based on a panel discussion they hosted, that gives some insight into the perspective of venture capital investors.
Risk is part of the landscape when investing in start-up firms, and venture capitalists need to approach this peril across a range of dimensions, including geography, industry and the timing of investments in the product development cycle.
There is an old adage that says, “There is a bank on every corner.” I remind entrepreneurs that each bank is different, and even though one is not a good fit, the next one might be. The same is true about investors. In reading the article about this panel discussion, one starts to see how just like bankers, each VC has different criteria, objectives, preferences, and biases.
(Thanks to John Russell for passing this along).