HBS has a good paper discussing the framerworks VCs use to evaluate venture opportunities. Investors from Kleiner Perkins, Menlo Ventures, Trinity Ventures and Alta Partners answer questions such as:
- How Do You Evaluate Potential Venture Opportunities?
- How Do You Evaluate the Venture’s Prospective Business Model?
- What Due Diligence Do You Conduct?
- What Is the Process through Which Funding Decisions Are Made?
- What Financial Analyses Do You Perform?
- What Role Does Risk Play in Your Evaluation?
- How Do You Think about a Potential Exit Route?
The paper costs $6.95, but is well worth it if you are raising capital from VCs.