Q: "How Do I Know If My Company is Venture Capital Fundable?"

What a great question! I can't keep track of how many times I've been asked this over the years.

Bill Reichert, a colleague of mine at Garage Technology Ventures, has a self-assessment test that really nails the key areas VCs focus on.

Will your company:

        1.  Have rapid, sustainable growth?
        2.  Obtain significant size and scale?
        3.  Be disproportionately profitable?

Your company must pass all three of these criteria to have the best chance of obtaining instutional equity funding. If you can't pass this triology, think about how your idea or business plan can be modified to change your answers.

Sadly, especially here in Silicon Valley, not being able to attract venture capital has taken on the unfair stigma of failure. Go outside Silicon Valley and you'll hear more entrepreneurs talking about and exploring bootstrapping, angels, SBA loans and grants as an alternative -- or precursor -- to VC funding.

With obtaining VC funding being about a 1000:1 shot, consider all of your options and, as it pertains to your dream, remember Winston Churchill's most famous quote: "never, never, never give up!"
                                 

    P.S. This is the first posting as a direct result of a question or topic submitted by a reader. What would you like me to address in future postings?  Please just send me an email.

Comments

[Sam]

Please give me an advice,how can i tell to my freind about the company i worked for(mlm)this a good company,in other hand what are key factor for a succses company?