This is a great article which I think give valuable insight to entrepreneurs about what it is that investors (not just VCs necessarily) are and are not looking for in candidates for investment.
Personally, I think the most important of these criteria is “the Team”. I have heard over and over from investors that the true “make it or break it” element for them in deciding to whether to invest in a business with an otherwise solid business model is the effectiveness and competence of the management team. In this analysis, much of the time, the whole is greater (and more important) than the sum of its parts. Cohesiveness and success in working together are often as (and sometimes more) important as individual talent and experience.
In any event, while this might not be the last word on what every investor is looking at, it does provide important insight into some of the key factors they are likely to be evaluating in vetting a deal. The underlying business model is clearly the sine qua non, but even the best business model will fail if key management cannot execute on it. Smart investors know this and it is a key factor driving investment decisions.