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It is usually an engineering challenge that is tough enough to give the company an edge, which will result in a several year's technological lead or longer. To create a barrier look for a tough problem that has not been solved before. Patents are strongly suggested.
The third factor is team. Look for engineering vision and execution, sales and entrepreneurship in a team. The best once are willing to reexamine their assumptions and are prepared to bend left or right or rotate all the way around when the data suggests they are headed in the wrong direction.
This business model has much to offer...
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