I'd swap 2 and 3. We'd rather fund good people in a small market (since they can change what they're doing) than bad people in a big market (since they can't change themselves).

And since 1 is not usually something applicants can dictate, it comes down to 3.

To me the most important thing is whether the founders seem impressive. If I find myself thinking "these guys know what they're talking about, and they get stuff done" I give the application a good grade. So the most valuable thing you can do in the application is to convey that.

If there's something you can tell about yourself that demonstrates you're an effective person, tell us about it, whether it has anything to do with this idea or not. And if you have some insight about the problem you plan to solve that shows you understand it deeply, be sure to include it. We ask leading questions designed to elicit both; you can probably pick them out pretty easily.