The Venture capital (VC) industry in India is of recent origin. However, the average investment value of each deal in India has grown from $3.85 mn in 2000 to $7.89 mn in 2001.These developments, together with the recent steps taken by government to promote venture capitalism in India, provide an opportunity for an examination of venture capital industry in India. This paper analyzes the validity of venture evaluation model in India by directly comparing the relative importance of evaluation criteria on the funding decision with the relative importance to factors influencing venture's empirical performance. In the light of the differences in investment opportunities around India, and the nature of industrial development in South East Asia in general, the author anticipated that the investment criteria employed by Venture Capital Firms (VCs) in India would differ. A questionnaire was administered to venture capitalists (regular members of Indian Venture Capital Association) to determine the criteria they use to decide on funding new ventures. The response rate was 100%. A list of 42 criteria was developed on previously developed lists. The criteria fell into six groups: the entrepreneur's personality, the entrepreneur's experience, characteristics of the product or service, characteristics of the market, financial consideration and characteristics of venture management team. Answers were given on four point rating scales. The results reveal that criteria adopted by Indian VCs are different from those adopted by VCs in other countries including US. The results also confirm that the entrepreneur's personality and experience are seen as being primary indicators of the venture's potential.