What VCs Say They Want

"When VCs evaluate a business opportunity, they want to see that:
-- You have a sound company strategy and business plan.
-- Your management team has drive, ambition and relevant experience.
-- Your target market is substantial and growing rapidly.
-- You have a clear understanding of your business.
-- You have a clear understanding of the competitive landscape.
-- Your business has a proprietary or differentiated product.
-- Your business can realize significant gross profit margins and significant revenue growth.
-- Your business has the potential to be a home-run investment..

Business tip:

Don't fudge the projections in your business plan
Investors expect to see a business plan that paints a realistic financial picture of the anticipated growth of the company. If the plan is overly aggressive and inconsistent with growth in the industry, your credibility may be questioned.

Be realistic with your financial projections, and be prepared to explain how you arrived at the numbers. "

From this sfgate.com article.