The Truth About WRITE WINNING PROPOSALS FOR VENTURE CAPITALISTS

Write winning proposals for venture capitalists

A venture capitalist sees your project as a pure investment.

By preparing an investor-focused business plan, it will be clear to the venture capitalists that you are focused, prepared and competent.

You must secure the money for your project. You visit venture capitalists to see if you can get these funds. A venture capitalist sees your project as a pure investment. The venture capitalist has no emotional attachment other than you. You should write a structured proposal around the needs of the venture capitalist, not yours. What may interest you may not be relevant to your potential funder. You need an "investor focused" business plan.

An investor-focused business plan contains information relevant to your project. It addresses concerns and questions and should allay any concerns that any potential venture capitalist may have. It must meet their exact needs. Venture capitalists exist to make big profits. They want to see a good return on investment. By preparing an investor-focused business plan, it will be clear to the venture capitalists that you are focused, prepared and competent.

There are four areas that must be addressed:

management responsibility

Get to know your markets

Get to know your product

Learn how management, markets and products make money

management responsibility

The power of project management can make or break your proposal. Venture capitalists need to ensure that you can manage their money. They want to see a demonstrable track record in areas specific to your project. Management skills will be tested, so be well prepared.

Get to know your markets

Venture capitalists will need to know the source of your income. Your business must demonstrate a strong understanding of your customer base and be able to meet their needs. Your plan should also address any potential new or emerging markets. Point out any research you've done to confirm this.

Get to know your product

Venture capitalists want to fully understand your product. They want you to show how the product they are funding will attract customers. The information in this section should be comprehensive and also include any potential additions or upgrades that your product will include. This will show that you have thought about long-term growth.

Learn how management, markets and products make money

It must be demonstrated that management can create links and paths between customers and the product. This element must be very strong as ambiguous information, otherwise the supposed relationship will frighten any potential financier. Create a step-by-step guide on how their money is processed and how clients' money is received. This should be clearly stated.

Connect these dots together and you will already be in the top 3% of all venture capital submissions. Good luck and God bless you!

Get to know your markets Venture capitalists will need to know the source of your income. Get to know your product Venture capitalists want to fully understand your product. Learn how management, markets and products make money It must be demonstrated that management can create links and paths between customers and the product.

Raising capital for your the best business - how long does it take?

Raising capital for your business - how long does it take?

This time is devoted to conducting market research to investigate the opportunity, developing a comprehensive financial model, determining the most effective way to formulate a business strategy, and writing and correcting a business plan.

This process includes creating a list of key investors, visiting each investor's website to review investment criteria and past investments, and identifying the right contact person in the company.

Most companies greatly reduce the time required to complete financing. In fact, a company seeking financing must allocate between 500 and 1,000 working hours to the capital increase process, spread over a period of 6-9 months.

The main operations in the capital increase process include

1) master the business plan, submission of the memo and other due diligence materials to the company,

2) to develop a comprehensive and targeted list of potential investors,

3) contact this list and respond to investor due diligence requests, and

4) Negotiate the deal.

Completing a business plan typically requires at least 200 working hours. This time is devoted to conducting market research to investigate the opportunity, developing a comprehensive financial model, determining the most effective way to formulate a business strategy, and writing and correcting a business plan.

The next step, which is to develop a comprehensive, targeted list of potential investors, is also time consuming. There are thousands of potential investors, each with different tastes in the types of projects that interest them. Some invest by market segment (for example, healthcare versus telecom), stage (initial versus later), geography, or a combination of these. Many hours must be devoted to identifying the right investors for your business. This process includes creating a list of key investors, visiting each investor's website to review investment criteria and past investments, and identifying the right contact person in the company.

To see how easy it is to count time, keep in mind that only about 25% of potential investors who show an initial interest in a transaction actually move on to detailed business due diligence. Only about 10% of these 25% develop into a good money supply, of which only 25% actually result in an investment deal. So completing a financing deal requires, on average, networking with approximately 160 pre-qualified potential investors.

The due diligence process, where investors screen an investment, can be very time consuming for a company. Investors often require many documents, some of which can be easily retrieved from files (such as past tax returns) while others may take longer to prepare (such as additional market analysis, customer lists with previous purchases, contact information, etc.). Finally, it can take a long time to negotiate a transaction depending on the complexity of the transaction and the number of parties involved.

Many companies fail to raise capital because they do not realize how much time is required to do so. The companies that understand these requirements and budget accordingly are the ones most likely to continue to persevere and end up with the capital they need.

This process includes creating a list of key investors, visiting each investor's website to review investment criteria and past investments, and identifying the right contact person in the company. To see how easy it is to count time, keep in mind that only about 25% of potential investors who show an initial interest in a transaction actually move on to detailed business due diligence. The due diligence process, where investors screen an investment, can be very time consuming for a company.

How To Start FINDING A VENTURE CAPITAL FIRM

The Great Finding a venture capital firm

There are thousands of venture capital firms in the US alone, and chasing the wrong firms is one of the most common reasons companies fail to raise the capital they need.

When searching for a venture capital firm, there are six main variables to consider: location, sector preference, stage preference, partners, province and assets.

Many projects face the difficult task of raising investment capital. The first part of this process is finding the right venture capital (VC) firm. Although this may seem simple, it is not. There are thousands of venture capital firms in the US alone, and chasing the wrong firms is one of the most common reasons companies fail to raise the capital they need.

When searching for a venture capital firm, there are six main variables to consider: location, sector preference, stage preference, partners, province and assets.

Location: Most venture capital firms invest within only 100 miles of their offices. By investing closer to home, companies can participate more actively and add value to their portfolio companies.

Sector Preference: Many venture capital firms focus on specific sectors such as healthcare, information technology (IT), wireless technologies, etc. You will miss the opportunity. 

Phase Preference: Venture capital tends to be focused on different stages of projects. For example, some venture capital firms prefer early stage projects where the risk is high as well as the potential return. Conversely, some venture capitalists focus on raising capital for companies to fill capital gaps before they go public.

Partners: Venture capital firms consist of individual partners. These partners make investment decisions and usually have a seat on the board of each portfolio company. Partners tend to invest in what they know, so finding a partner who has previous business experience in your field is very beneficial. This relevant experience allows them to fully understand your project's value proposition and gives them confidence in their ability to add value, encouraging them to invest.

Portfolio: Just as you should look for venture capital firms whose partners have experience in your field, the ideal venture capital firm also has portfolio firms in your field. Being experts in the industry, the management of an investment portfolio company often advises on whether the company in question is worthwhile. In addition, if your project has potential synergies with a portfolio company, this greatly increases the interest of bold investors in your company.

Assets: Most first-time venture capital firms require follow-on capital rounds. As such, it is beneficial for the VC to have "deep pockets", i.e. enough money to participate in the follow-on rounds. This will save the company considerable time and effort in maintaining sufficient liquidity.

Finding the right venture capital firm is critical for businesses seeking venture capital. Success results in the necessary capital and significant help to grow your business. On the contrary, the inability to find the right company often results in no capital being raised at all and the company not being able to grow.

Portfolio: Just as you should look for venture capital firms whose partners have experience in your field, the ideal venture capital firm also has portfolio firms in your field. Assets: Most first-time venture capital firms require follow-on capital rounds. Finding the right venture capital firm is critical for businesses seeking venture capital.