Glossary / Finding customers and growing / Venture-scale

Finding customers and growing

Venture-scale

A venture-scale business is one that could grow large enough to return a whole venture fund, which is the bar most venture capital investors use to decide.

Also called venture-backable, VC-scale

Looking this up for a class, a job, or something you want to build? If it is the last one, nommi reads your idea before you spend months on it.

Venture funds expect most of their investments to fail, so each one has to have a chance of becoming very large. That is why an investor can call a good, profitable business "not venture-scale". It describes the size of the possible outcome, not the quality of the idea. Many strong businesses are never venture-scale and never need to be.

When this shows up

Example, not a real founder: you run a booking tool for local yoga studios that could become a steady, profitable business. An investor passes because the market looks too small for a fund. That is a fit question about funding, not a verdict on your business.

What to do next

Decide whether you want venture money at all before you shape the idea to fit it. Write down what a good outcome looks like for you in five years.

Go deeper

Should I raise venture capital for my startup?

Read the guide