- A venture backable business is a company whose business model has the potential to generate significant outsized returns.
- If a business doesn't potentially cause a big impact in a market worth billions, neither generates enormous annual revenue, then it isn't a venture backable business.
- The pillars of a company venture backable are:
- **Team**: the team is passionate and deep understand the industry and the customers they're working on. They have a long period of recognizing inefficiencies in the industry they've worked in.
- **Market and Vision**: the market should worth billions. Also, the founder's insights about their idea should clarify that they're the ones to solve a critical problem.
- **Traction**: the team has to be able to execute the idea. The founders can use milestones to prove traction. For example, milestones might include the initial [product/market fit](/zettel/product-market-fit) as the app's number of downloads.
- [Alex Gold. Telltale Signs That You Shouldn't Be Raising Venture Capital](https://www.entrepreneur.com/article/345358)
- [Real Ventures. Is Your Company VC-backable?](https://blog.frontrow.ventures/is-your-company-vc-backable-1ed1f549c65e)
- [Young Upstarts. 4 Signs Your Company Might Be VC-Backable](https://www.youngupstarts.com/2020/07/07/4-signs-your-company-might-be-vc-backable/)