How Do Venture Capitalists Make Decisions?
I would be curious to see more detail about these factors:<p>&quot;...the attractiveness of the market, strategy, technology, product&#x2F;service, customer adoption, competition, deal terms and the quality and experience of the management team.&quot;<p>I feel that there is another layer of analysis that is being missed which is the interaction.<p>Q: Would you invest in AirBnb at 31B?<p>Hypothetical response: No, there is so much competition from the hotels, and competing sites. I think they have liability risk.<p>Q: How about at $1B value?<p>Hypothetical: Are you kidding me? Of course!<p>The valuation interacts with the other criteria.<p>Q: Would you invest in my personal device company at $100 million?<p>Hypothetical answer: No way. I think the market is saturated.<p>Q: Will you do it now that Steve Jobs is back from the dead and has agreed to be the CEO?<p>Hypothetical answer: duh! Of course!<p>Again, the &quot;team&quot; has now changed things around.<p>I can&#x27;t think of any situation where these factors don&#x27;t interact with each other.