Companies which already have customers or revenue and significant intellectual property. SV values revenue and referenceable customers as important indicators of validation. All of this helps to answer the question, “Is the market interested in buying your product or service?”.
Intellectual property can include patents, trademarks, proprietary algorithms, and other methods by which to protect your idea/innovation. It is important that your ideas and products are protected allowing you to grow uninterrupted and prevent competition from accessing your target market. Intellectual property & validation can also include the background, skills, and expertise of the founding team.