How Venture Capitalists Evaluate Potential Venture Opportunities Essay

How Venture Capitalists Evaluate Potential Venture Opportunities - Essay Example The product is analyzed to determine if the product can produce a competitive advantage. The technology is examined to ascertain if it is a new item that can demand market share or is the technology and improvement over existing products. Although all four of the venture capitalists analyze the team, or specifically the people involved in the company, they differ on which aspect of the team they place a greater emphasis. Some venture capitalists place more emphasis on the founder, or entrepreneur, of the product or technology and other place more importance on the management team. The other item that venture capitalists differ is the stage of product development. Some venture capitalists prefer a new product or technology and some prefer to look at products that are currently inexistence. Venture capitalists are mostly focused on the tactical aspects of the company with which they want to invest. They examine the potential revenue stream of the product versus the strategy to achieve the market share. The venture capitalists analyze the tactical aspects of the market and