<aside>

Cut through the noise and understand the filters investors actually apply — from market size to timing, and why “good” businesses often get passed over.

• Outline </aside>

1. What the Question Means

Every venture investor is filtering for one thing: “Could this startup return our fund?”

If the answer is no, they’ll likely pass — even if they like you, even if the business is “doing well,” even if the market is interesting.

• The question is about math, not emotion.
• This is why VCs don’t invest in solid businesses. “Good” often isn’t enough.
• They need to believe your company could one day be worth $1B+, and that they’ll own enough of it to drive returns at a fund level.

2. What Does it Take to Achieve These High Heights?

There are two main markers:

1. Size
   • Target ≥ $100 M ARR while still compounding at 50 %+
   • For SaaS that can translate to a $1 B+ exit; hardware or deep-tech often need more revenue to hit the same mark.
2. Velocity
   • Roughly 7–8 years to reach that scale.
   • Funds have a 10–12-year life; they need to find an exit at the end of the life of the fund.

Practical takeaway: Show a credible model that connects today’s traction to $100M ARR in < 8 years.

3. What Do VCs Need to Believe to Invest

Insider Tip: 👀 VCs don’t need to believe on day one. They are typically looking for a sparkle at the interface between team, market and product, something that is so fresh and different that it could explode in popularity and capture the zeitgeist of the market.

Over time traction, growth and continual reinvention will be the markers of success and keep a company either on OR off the venture path.

But right at the beginning it is about squinting and seeing a path to dominance in an important market.