In B2B, it’s pretty simple.
Can the company get to $100m+ in revenues in 7–10 years?
Sort of … period. That’s kind of it.
If it can .. then:
- the CEO is probably great
- and can recruit a great team where
- the market and market pull are real and
- the company has, or will have, a dominant or partially dominant market position
- in a new / changing / evolving category.
Getting to $100m+ from $1m or less in 7–10 years is what breeds Unicorns.
Unicorns are what make VC funds profitable.
Whatever stage you invest, you’re really just trying to back into if this will happen. If at least there’s some chance.