A common misconception surrounding the different stages of venture capital financing is that money only flows to smart people with great ideas. The truth is somewhat different. Venture capitalists tend to invest primarily in growing industries. There are several examples of this. In 1980, nearly 20% of all venture capital was allocated to project in the energy industry. Today, we see a larger allocation of fintech and blockchain tech projects.
All this indicates the importance of timing. To maximize your odds of success, you need to ensure that your product is solving a pressing problem in a growing industry. If not, there is not much of an upside for VCs, no matter which venture capital stage you are in.