Scalability: (1) Potential for revenue growth of revenues without huge organizational complexity and expenses (e.g. the ability to add millions of new customers to an existing platform without millions of dollars of incremental cost). Businesses which are highly scalable are the holy grail for VC. (2) How easy it is to go from a small fund to a bigger fund. GPs tend to raise more money from one fund to the next and the issue of scalability is therefore raised: i.e. can the GP find enough investment opportunities to justify the increase in fund size.
