Every early-stage venture capital provider would like to be the next Sequoia Capital with the vision to invest in the equivalent of Yahoo or Google. Given the probability of this foresight or luck is low, the best option is to invest in industry-leading teams, with proven proprietary technology in huge markets.

If this describes your business, then the path to funding should be relatively smooth. However, if elements are lacking, you can still position your company to at least generate interest in your investment proposal.

• Take the time to fully research your business idea. Make sure that the fundamental concept and execution plan posses all the criteria necessary to generate required returns for shareholders in a defined time frame. This sounds basic, but many entrepreneurs mistakenly believe that an impressive business plan compensates for a poor foundation.
• Do whatever you can with limited resources to get the business to the point of having revenue generating customers. Show momentum in the growth of your customer base. If you need the funding to get to the point of sales, then identify potential clients, who will verify that they have a compelling need for the product or service.
• Demonstrate that you have serious competition. In this case, serious preferably means a competitor that is generating significant profits for its shareholders. This provides a potential investor with the confidence that a market exists. Having identified at least one competitor, go on to prove why your company has a competitive advantage.

A solid business idea that is already generating revenue in a proven market will significantly raise your chances in the quest for venture capital financing. As an entrepreneur, these should also be the criteria you use to judge your own further capital and time investment too.