An experienced leader in the finance sector, Mark Love serves as a partner at GoldMark Venture Partners in Arizona. In this capacity, Mark Love oversees venture capital funds and is responsible for making early-stage investments in technology companies.
Whether they are focused on early stage or late-stage investing, venture capitalists (VCs) often look at similar things to determine the viability of investment opportunities. The following are just a few of the things VCs will consider:
- Management team strength: Management teams that lack the ability to execute business plans will likely fail in the long run. For this reason, many VCs look for strong management team members who have track records of building successful businesses. With early stage companies, VCs will look at the quality of the founders and see if they have the ability to work hard and make their dreams a reality.
- Market size: Regardless of how strong the management team is, a business cannot succeed and grow if the market for it does not exist. Before investing in a business, VCs often analyze the size of the company’s target market. When the market size is large, there is a higher chance of VCs investing in the business.
- Competitive advantage: Businesses that have a competitive advantage over existing competition have a higher likelihood of breaking into their desired markets and being successful. This competitive advantage largely comes from addressing consumer wants and needs more affordability and efficiently than others by offering unique products or services that are not readily available.
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