Why VCs Might Pass on Your Deal
Serial VC-backed entrepreneur, Steve Bayle, offers in this post his list of why VCs may pass on your deal. My take of his list is as follows:
1. Market is too small/Business can't grow big enough, fast enough.
2. The business model doesn't scale.
3. VC's are reluctant to invest in a service business.
4. VC's are afraid of consumer businesses.
5. Your product is nice to have, not a need to have product.
6. Your business in not ready for VC investment
7. No barrier to entry/no sustainable competitive advantage.
8. Entrenched competition
9. Area is overfunded already
10. Looks like a lifestyle business
11. Too many moving parts
12. Flawed business model
13. Weak management team
14. Unclean IP rights
15. We already have an investment in the same area
16. You are asking people to change their behavior
