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Tuesday, December 4, 2007 

How Does a Venture Capitalist Choose Which Deals to Make?

Some entrepreneurs have a very poor respect for Venture Capitalists and yet it seems they do not understand. You see if you have to choose which deals to fund, knowing that some of these deals had to make good or you were sunk and would not be able to raise additional monies for the fund, then you too might be a little paranoid and careful what you chose.

You see there are a million projects going on in the world sometimes you have to skip many to find the best one. Next time you pitch a business plan to a venture capitalist, think about these little facts. Didn't your VC boss explain this to you.

He might pick 1 in 200, or 1 in 1000, choice is something humans have to decide, every move effects every other, there are often many ways to solve a problem and many roads to get to a stated goal, the destination may change and the plan may remain or the plan changes and the end goal stays.

Chaos and Design is part of nature, part of everything, it is all one. Complexity calls for simplicity, simplicity breeds complexity, all is relative to where you stand, which cubical you set or from which hive you come. Step back; look at the bigger picture.

If you are looking for VC money, you need to put yourself in their shoes and consider what is going through their minds, are you a good risk or not? Would you invest in your project, someone else's, how would you choose?

L. Winslow is an Economic Advisor to the Online Think Tank, a Futurist and retired entrepreneur http://www.worldthinktank.net

Currently he is planning a bicycle ride across the US to raise money for charity and is sponsored by http://www.Calling-Plans.com and all the proceeds will go to various charities who sign up.

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