Given venture capital funds focus on investing in new companies or new or innovative ideas. There are certain sectors and types of businesses that are more likely to appear in a VC fund Portfolio.

VC funds can set their own investment criteria, which usually depends on their collective area of expertise or area of interest. Here are three hypothetical VC funds, A, B, and C VC fund.

Each fund has its own unique investment profile. VC funds often provide a summary profile of their investment criteria on their website, which is useful to entrepreneurs during their fundraising process. This may disclose what business model they prefer. In our example, AVC focuses on B2B business to business and SaaS software as a service businesses. BVC looks at B2C business to customer and CVC is interested in AI tech business models as well as SaaS. VC funds usually have a sector interest or focus. Again, we can look at our examples. AVC looks at the automotive and industrial manufacturing sectors. BVC has a consumer focus, including retail, consumer media, and advertising. And CVC is a specialist healthcare focus fund. Stage of investment is also a criteria for a fund. This may vary depending on the business, but we can see that AVC targets series A investment BVC prefers earlier seed investing and CVC is typically a later stage investor.

Some VC funds also provide information on their website as to the check size or range of their investment majority or minority investment, and whether they need to be lead investor.