Chemical Bank

A questionnaire was administered to one hundred venture capitaiists to determine the most important criteria that they use to decide on funding SUMMARY new ventures. Perhaps the most important Jinding from the study is direct confirmation of thefrequently iteratedposition taken by the venture capital community that above all it is the quality of the entrepreneur that ultimately determines the funding decision. Five of the top ten most important criteria had to do with the entrepreneur’s experience or personality. There is no question that irrespective of the horse (product), horse race (market), or odds t’financial criteria), it is the jockey (entrepreneur) who fundamentally determines whether the venture capitalist will place a bet at all. The question is if this is the case, then why is so much emphasis placed on the business plan? In a business plan there is generally little to indicate the characteristics of the entrepreneur-it is generally devoted to a detailed discussion of the productlservice, the market, and the competition. To us, the implications are obvious-such content is necessary, but not suficient. The business plan should also show as clearly as possible that the “jockey is fit to ride”-namely, indicate by whatever feasible and credible means possible that the entrepreneur has staying power, has a track record, ca