I’m gonna speak in generalities for this one because businesses are all quite different. This answer also depends on the VC you're speaking with, and what industry you’re in.

At a high level, VCs swing hard into companies that are aspiring to become unicorns because of portfolio mathematics. 

VCs may expect most of their portfolio companies to either be neutral (where they get their $ back due to a smaller exit) or negative (where they lose their money). 

But to have a positive return on their portfolio, VCs need to at least have a few companies that are gonna get a really, really big outcome.

AKA the next Facebook or Stripe. 🦄

VCs aren’t investing in businesses to double or triple their money – although angel investors might. 

Generally, we’re hoping a great company can reach $100 million in revenue by year five. 

So we look for companies in a market that can support revenue outcomes like that and follow this unicorn path. For markers at the other stages, this post will come in handy.