There are no mysteries surrounding the criteria for a successful venture-backed company. Venture firms most often get in trouble by ignoring those criteria
believing the dangerous assertion that its different this time.
In addition to the overriding consideration of the quality of management, we consider:
- Quality of the product or service,
- Size and growth rate of the market,
- Ability to achieve market leadership,
- Capital requirements, now and in the future,
- Holes in the management team,
- Intellectual property position,
- Customer relationships,
- Competitive environment,
- Fit with our portfolio,
- Ability of EGL to add value,
- Pre-existing financial terms,
- Quality of the syndicate, and
- Exit potential.