Why management is important to Venture Capital Companies

The question was asked open ended with no suggested qualities given. The VC was free to name only one quality -- and several did just that-- or write a paragraph. The majority of VCs named at least three or more qualities. Many different responses came back to this question. The results were (the number to the right represents a scale of how frequently each was cited relative to each other):

Frequency of Mention

Successful experience or proven track record 9.5x
Integrity, honesty 3.0
Dedication, commitment, passion, energy 3.0
Vision and ability to articulate vision 2.3
Knowledge, skill level, intelligence 2.0
Leadership ability 1.0
Ability to build a team .75
Marketing focus .50
Made investment in company .50
Winning attitude .50
Industry contacts .50
Good references .25

Overwhelmingly, quality of management means experienced. Only 17% of the Venture Capitalists did NOT include successful experience or proven track record in their response. Curiously, the VCs felt compelled to designate integrity or honesty as a characteristic rather than as a given. This may be the result of past history they had with entrepreneurs who made less than full disclosure to them during the initial meeting stage and the fallacies subsequently discovered during the due diligence phase.

58 Ways to Find Money for Your Business
how to start a business

Over Time

Inside Secrets To Venture Capital

Attracting Capital From Angels
Publishing Primer: An Author's Blueprint for Success how to get a book published