Hmm.. I guess if you do not have customers, defensible and patentable technology it is harder to get a few million in financing. -- VentureBlog: Being Diligent
The order of things on the list points out very well what the relative merits of simply inventing a better mousetrap are compared to such a claim to fame as golfing with Jeff Bezos. Alrighty, that was uncalled for, perhaps, but this is something that got strongly overlooked in newspaper analysis of the dot-com days. While newspapers were crowing about people getting financing for half-baked ideas, they ignored the fact that by and large these were *not* people off the street. They were in position to provide references from authoritative executives, important companies, and previously successful entreprenuers.
VCs have never been big on taking random risks, as annoying as that may have been to aspiring start-up artists. At no time did they abandon that philosophy, it's just that for a brief time the risk of a venture not turning a profit was taken off the table and replaced with a seeming surety of it being bought out or taken paublic. The equation is always about an investment making money, it is only a question whether it would do it by selling its products or by becoming a product itself.