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How Venture Capitalists Decide What to Fund |

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Cuz... their fund is missing a vertical in their portfolio.

I think net-net there is no single thing they look for.

They want a great team with passionate founders, a great market with product fit, and happy customers.

For Adele Oliva of 1315 Capital, it was great leadership teams. For Tony Grover of RPM Ventures, it was the relationship the VC firm builds with the entrepreneur-founder. For David Cremin of DFJ Frontier, it was the entrepeneur-founder's level of passion. 

No surprises there. But the next three VCs gave responses you don't see everyday: 

  • Dan Borok of Millennium Technology Value Partners said that his firm conducts "many months of primary research to identify where value will be created and which companies are best positioned to benefit." 
  • For Alison Wagonfeld of Emergence Capital Partners, a key was the potential level of regret. "'I ask myself, 'How will I feel in a year if I pass on this opportunity?'"
  • Jodi Sherman Jahic of Aligned Partners said she looks for "ecstatic customers," especially when those customers "can quantify why they are so happy with a meaningful business metric." 

Okay. So now that you know all of that, are you going to change your business model, your top team, your body language, or your customer outreach?

Don't change for anyone but yourself, your company, and your customers.

The right investor, like the right spouse, will be a good match for who you are.

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