What You Need to Apply for a Venture Capital
But for someone who is not well versed in the streets of business we don't know how to go about it. When you are applying for a venture capital fund or grant you need a comprehensive business plan.
Applying and convincing investors are no easy feat. They are going invest money in your business so it's natural that they want to be sure that it will profit them in the long run. Screening can be very tough and competitive. Venture capitalists can reject you because of a million things, and don't be surprised that some of them may even be trivial.
What you need along with an application
There are five documents that you need to present to the investors along with your application form. These documents will serve as a representation and summary of your company. Your sales pitch may play a role in your overall presentation but the gift of gab is not enough. Investors want to see that you are worth their time and money in print.
First is the executive summary. It contains your business' investment opportunity. It's just one page and available for the public. It is made in a way that anyone can read and understand it.
The second is the Investor ready business plan. This is different from the bank ready business plan because it contains the marketing strategy of your business for the investors. This will show the movement of the company along with the investor's funds and positive returns. In this document investors only want to know two things: how will they earn back their money and their mitigation risk. This document is used to sell your company and presents to the investors your company's worth.
The pitch: the presentation of your business with charts. This usually takes about 8-10 minutes and 12-15 charts. This is quite the same with a sales pitch.
The fourth document that you are going to need is the Private Placement Memorandum. This document is used to protect the interest of both the investor and your business. If you don't have this legal document, the investors can sue your business for a refund if you do not produce the results you stated. Investors only read this document if they have decided to invest in your business.
The fifth and the most important document is the operating plan. This is the blue print of your company that serves as the integral part of the business plan. It contains a comprehensive overview of your company. The operating plan contains the organizational charts, production and marketing strategy.
Investors want to know that you have a structured plan as your company grows. It also tells your team what is expected of them as the company progresses. It also contains the changes in your strategy in a competitive market.
Screening of emerging businesses by investors will be quick. In normal circumstances, private equity firms reject a large percent of applicants. In most cases they are only required to approve certain of number of applicants. Make sure that you have a good business plan to back you up and little gift of gab to convince your investors.
Comments
Menu
My Articles
Advantage In New Orleans: Capital For The UnderdogsHow And Where To Find Venture Capital Insurance
How To Raise Venture Capital Funding
The Advantages Of Taking Venture Capital Courses
What Do Venture Capitalists Want?
What The Definition Of Venture Capital Won't Tell You
Kinds Of Venture Capital Jobs
Venture Capital And Its Characteristics
Venture Capital Cycle – How Does It Go?
What You Need To Apply For A Venture Capital
Venture Capital: The Basics
Venture Capital And Grants – Is It Right For Your Business?
Venture Capital – Knowing Your Funding Options
Choosing The Best Venture Capital Consultant
What Is A Venture Capital Course?
What Is Venture Capital Fund?
Kinds Of Venture Capital Firms And What They Do
Making A Difference With Non-Profit Venture Capital
Astellas Venture Capital: Aim Big
Pitfalls To Avoid In Applying For A Venture Capital
Sources Of Venture Capital News
Venture Capital Firms In New York: Chase Your Dreams
Venture Capital – Things That You Should Know
Venture Capital Fund: A Viable Risk?
Related Sites | My Articles Astellas Venture Capital: Aim Big The foundation of every business, other than its product,.. Advantage In New Orleans: Capital For The Underdogs Finding a venture capital fund is easy. The problem is.. Finding Angel Venture Capital In Honolulu More and more companies worldwide are seeking venture capital to finance.. Venture Capital And Its Characteristics More businessmen are getting into venture capital. Whether.. |
|
|
Related News:
|