The short answer is a balance sheet is not typically a key decision tool used by VCs when considering investment.

VCs will however use the balance sheet to understand a number of issues:
- Size of existing investments: The balance sheet will show how much existing investor will have put into the business
- Size of existing debts: The balance sheet will show if the business owes money
- Size of cash reserves: This will show how much money the business has left to fund operations
- Assets: At times, depending on the stage of the business, and type of business, the VC may be interested in what assets the business has. For example, a VC will be interested to know if a business owns its premises, or has lots of inventory etc.