A VC in Vacationland

Image by jdlasica via Flickr

Any entrepreneur knows that it is a still a tough time for good ideas to get funded.  I have said often times in the past that I rarely see a bad idea, but often see a bad business model attached to a good idea.

Reid Hoffman, serial entrepreneur- think Facebook and Zynga Gaming Network for starters- and a partner at Greylock Venture Partners has some interesting fund raising advise around winning business models for wanna be entrepreneurs. In a recent Wall Street Journal article (sorry, behind the paywall), Reid says that companies looking for venture funding should fit one of three profiles:

1. A software platform that other small companies can build on, such as Facebook.
2. An on-line marketplace that connects buyers and sellers in a new way, such as eBay.
3. A network that links people and companies in more efficient way, such as LinkedIn. 

Of course, having a technology in place that works and scales, more than 50,000 customers and a large potential market that is easy to sell in an inexpensive way will not hurt your chances. But the underlying profile should focus on one of the three business models to get any traction in the funding community.