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.
