In other words, one needs to create a unique enough market niche such that it will not easily fit into a larger market and be subjected to its vagaries. Venture capital is not a onetime investment. It is a staged process, with demanding milestones. Only if the company makes progress will it continue to receive financing. The process is a sustained and intense effort.
Venture capitalists look for solutions to major problems.
They prefer a strong and balanced management team with experience creating and executing plans in fast-growing businesses. They hope to invest in protected technologies. The founders and venture capitalists alike derive benefits only if the business can be sold to either the public or to another company. In the eyes of the investors, the valuation at the point of sale depends on the inherent value of the company as well as on the overall market into which it fits. Robert C. Dullien has assisted numerous ventures in assessing their products and ideas.