Cash Now VCs are getting tougher. You can still win them over if you know what they want. The days of easy money for Internet startups are history. Venture capitalists are scrutinizing companies under an ever-more exacting microscope. Here's what some VCs and VC-watchers advise.
Companies have to focus on the competition.
If they can't show us they understand who that is, it's a deal we probably won't do. The fact is, the time to get to market is shrinking, and we don't want to miss the window because a rival got there faster. We have to determine whether the deal we're looking at has a better chance of success than the alternatives. If they can really differentiate themselves, maybe they can get to market faster, maybe they have partnerships in place. The expertise of management is also very important to us.