Here’s what venture capital firms are looking for when investing in small businesses. 

Travis Stegemoller, the General Counsel for Gener8tor and the Vice President of the Venture Club of Indiana, says some of the most important factors when looking for investment opportunities include team, talent, and the size of the market a business is targeting.  

Stegemoller says that when looking for investment prospects, the Venture Club of Indiana focuses on companies with scalable business models in billion-dollar industries. These include companies that act as disruptors in traditionally non-digital markets. 

According to Stegemoller, when presented with potential investment opportunities, the Venture Club of Indiana takes recommendations from member firms that have already invested in a prospect. The club also looks for companies that are below a certain revenue threshold.  

Stegemoller wants entrepreneurs to ask themselves, “What does it mean to be successful in Indiana?” He says investors want a return on their money, and they are looking to the Hoosier state for potential prospects. This includes startups that focus on agriculture and sports technology. 

Most importantly, Stegemoller says entrepreneurs have to have tenacity and the will to scale their business fast when venture capital dollars start to flow.