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They really are trying to make money. Read Entrepreneurial Finance by Leach / Melicher. They list a few things: Market Size potential > $100 million Venture
by codeonfire 14y ago
They really are trying to make money. Read Entrepreneurial Finance by Leach / Melicher. They list a few things:
Market Size potential > $100 million
Venture growth rate > 30%
Market share > 20%
Legally protectable IP
Gross margins > 50%
After-tax margins >20%
Break even within two years
IPO within two years
There are non-financial factors such as the type of business. Most people will not want to invest in something that seems unethical or has legal risks.
Also there's the novelty of the idea, who else is investing, etc. Maybe some investors can chime in.