Business theories and empirical studies have identified so many variables that venture capital takes into consideration when choosing the company in which to invest such as the capacity of the business partners, risk & profitability, long-term sustainability, cultural aspects and innovative ideas for the project. However, the last variable is the most important factor. Anyway, you can go through the following articles to find out more.

Olga Cucaro

Without fail, most VC's look at the "Race and the Jockey" or the "Tide and the Captain." Specifically, they need to know whether the tide is big enough to accommodate the scale required to generate their required rates of return, given the illiquid and riskiness of their bets.

For ease of reference, I have attached a link to Don Valentine's speech at Stanford, in which he makes so of the points above emphatically.

https://www.youtube.com/watch?v=nKN-abRJMEw

Please, refer to the publications of my namesake Josh Lerner, e.g. on ssrn.com

Hi,

I submit an article on the topic.

This guide will give you a better context to understand the language of startups, venture capitalists, angel investors, and incubators.

If you wish to pursue a career in Venture Capital or in any startup, knowledge of these commonly used VC terms may be beneficial:

https://in.prosple.com/resources/common-venture-capital-terms?utm_medium=social&utm_source=researchgate