I am often asked this question by entrepreneur friends when they have a choice amongst competing VC funds ready to fund their business, all other commercial terms being more or less equal.
First, a universal truth - every VC becomes your friend and advocate if your business tracks well, and value creation continues to happen at a fast pace, post investment. They encourage, talk very well about you at every forum & go out of their way to help you by leveraging their knowledge and networks. However, this is something you don't know a priori when you have to choose from amongst two or a few interested funds.
At the point of deciding which VC fund to invite into your business, the key parameters to diligence out and evaluate are as follows:
Naturally, if you are not facing the problem of plenty, the question about best-fit VC doesn't arise - Beggars can't be choosers!