Key VC Investment Criteria

This article from the Puget Sound Business Journal offers these three key criteria in today's market for successful funding VC funding:

1. The company must be cash-flow positive or will become cash-flow positive with a very high degree of certainty, post funding.

2. Seasoned management is a must. The ideal management team has done it before, preferably with a private equity fund partner.

3. High-growth potential must project out to a compounded annual growth that will enable the investor to achieve a targeted 40 percent internal rate of return over about a five-year holding period.

For more on this topic, please consider reviewing my article, Tech Startups Face New Reality