How Venture Capitalists Evaluate Potential Venture Opportunities - Essay Example

 Four venture capitalists were interviewed regarding the models they use to measure possible investments. Russell Siegelman, Sonja Hoel, Fred Wang, and Robert Simon, were interviewed about the various aspects of the company’s business model and the type of due diligence undertaken. What do the different venture capitalists agree on?All four of the venture capitalists review the market opportunity and growth. The most significant prerequisite is a prominent market possibility and the market has size and growth.

Each venture capitalist has target revenue goals and they examine the people of the company that they will invest. 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. What do they disagree on?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 greater emphasis.

Some venture capitalists place more emphasis on the founder, or entrepreneur, of the product or technology and another place more importance on the management team.