# What do investors look for in a startup? > Markdown version of https://brajeshwar.com/2008/what-do-investors-look-for-in-a-startup/ — 2008-09-27 A great [video Interview](http://venturehacks.com/articles/investment-criteria) with Venture Hacker Naval Ravikant answering the age-old question: What do you look for in a startup? Investors look for two things that are paramount above all: - Great team: It's obvious. It's a tautology. Everybody says it. You have to be working with some of the best people in the industry you're in. - Huge market: Niche markets just don't work because the first idea never works. You always have to change the idea, so you need room to maneuver in a big market. There are three more factors that investors look at: - Difficult technology that is compounding over time. - A proprietary distribution channel. A clever viral marketing, or partnership, or whatever strategy that gives them a leg up over competitors. - A direct monetization model. Something more than throwing up 10 cent banner ad CPMs.