[andrewljohnson]

Besides understanding the growth of a particular market, it's also important to understand the motivations of a VC.

It depends on the overall sharkiness of the particular VC, but in general, VCs like to have entrepreneurs poorly estimate their revenues early on when funding milestones and the price of shares depend on those estimates.

More than one founder has gotten into bed with a VC, blown the revenue plan, and found themselves a minority shareholder in a VC-owned company. It's not that amazing how many founders will give away tons of equity, confronted with lack of revenues and a need for cash to pay all the employees they dazzled with their dream.