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Not all companies should raise (or need) venture capital to succeed. As scholar and former VC Dileep Rao points out, “The reality is that most ventures do not qualify for venture capital and never will.” However, a highly scalable business shouldn’t necessarily avoid seeking capital. In fact, many successful companies have grown to fruition because of it. Ultimately, your company’s success in securing capital depends on market size and opportunity, the founders and team, and your product/market fit.

Find a Great Market Opportunity

To better recognize the reality of your company’s future, understand your market size and potential. Research your desired market thoroughly and analyze the data. You can get started by checking out some helpful tips from articles like this one or utilizing free resources to collect data on your market. A great market has many potential customers willing to spend money, is already large or is expanding rapidly, or has a fragmented customer base with little customer concentration. 

At my company, we focused on an untapped market: over 90 million U.S. hourly workers. We’ve strived to create a place for them to find better employment. As Uber has proved, mobile technology is able to give hourly workers access to information instantly so they can work when they wantIn January 2014, after speaking to many potential clients, we pivoted from a web social network to a mobile marketplace. Prior to this, we were growing exponentially, but not virally. Ultimately, client demand drove our decision to pivot the business.

Listen to your clients when making these types of vital decisions. After the shift, we rigorously measured our customer acquisition costs and lifetime value metrics. Many of our investors supported the company because of the early financial metrics and the large market opportunity. Take the time to measure these types of data for your investors.

Look for Strong Co-Founders 

Venture capital firms seek out exceptional founders. I personally believe that the best founders have a combination of domain knowledge, vision, and the ability to build and sell a great product. During my decade at OCA Ventures, I met over a thousand passionate entrepreneurs, founders and management teams. Our best investments were with teams that knew how to execute, often by selling. They sold their vision: to angel investors, early team members and even beta client before the product was built.

The same traits that make great salespeople often make great founders. My own co-founders have passion and grit. Find partners who have similar values yet different functional skills. To find great co-founders, network diligently and don’t be afraid to share your idea. Be comfortable having candid and open conversations about roles and responsibilities from the beginning.

Make Sure You Have Product/Market Fit

Are companies buying your product as fast as you can make it, or are sales cycles long and word-of-mouth ROI low? If it’s the former, you might be a candidate for capital. As an investor, I would often monitor a sales pipeline for months or longer to see how many clients actually closed. It would clue me into the company’s product/market fit before I decided to make an investment. 

In addition to these three factors, timing is an important consideration when raising venture capital. Attempting to raise money when you are low (or out) of cash is not a sensible practice. Instead, consider waiting until a venture capital fund is at the beginning or middle of a fund cycle and is actively looking to invest. Also, be conscious of the time of year you decide to dedicate to raising funds. Summer months and certain holiday winter weeks might be slower, as key investment partner might be out of the office.

When seeking a venture capital partner, remember that they will be intimately tied to your business. Someone who understands your business’ domain can add ongoing value. Make sure that your potential partner stands behind your vision and mission. 

The financing process can be long, hard and not the right path for most businesses. However, if you have the right strategy coupled with the right capital and partner, an amazing growth business could be the storybook outcome.