Write Winning Proposals For Venture Capitalists

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					Write Winning Proposals For Venture Capitalists
You need to secure money for your project. You visit venture capitalists
to see if you can get that money. A venture capitalist views your project
as a pure investment. A venture capitalist has no emotional attachment
unlike you. You need to write a proposal that is structured around a
venture capitalists needs, not yours. What may interest you may have no
relevance to your potential funder. You need a business plan that is
‘investor-focused’.
An investor focused business plan contains relevant information about
your project. It addresses concerns, questions and should allay fears
that any potential venture capitalist may have. It should meet their
needs exactly. Venture capitalists exist to make substantial gains. They
want to see a good return on investment. By compiling an investor focused
business plan, it will be clear to Venture Capitalists that you are
focused, prepared and competent.
There are four areas that need to be addressed:
Management Responsibility

Know Your Markets

Know Your Product

Know How Management, Markets and Product Make Money
Management Responsibility
The strength of management assigned to the project can make or break your
proposal. Venture Capitalists need reassurance that you can manage their
money. They will want to see a demonstrable track record in areas
specific to the project you are pitching. The ability of management will
be tested so be very prepared.
Know Your Markets
Venture Capitalists will need to see where your income will be coming
from. Your company must demonstrate a strong understanding of your
customer base and be able to fulfil their needs. Your plan also must
address any potential new or growth markets. Illustrate any research you
have conducted to emphasise this.
Know Your Product
Venture Capitalists will want to fully understand your product. They will
want you to demonstrate how the product that they are funding will
attract customers. The information in this section must be extensive and
also feature any potential expansions or upgrades that your product will
feature. This will show that you have thought about long-term growth.
Know How Management, Markets and Product Make Money
It must be demonstrated that management can create links and paths
between customers and product. This element must be very strong as
ambiguous information, or an assumed relationship will scare off any
potential funder. Create a step-by-step guide of how their money will be
processed and how the customers money will be received. This has to be
clearly shown.
Tie in these points together and you are already in the top 3% of all
venture capital submissions. Good Luck!
Dominic Dirupo survived the Tech Boom and Crash with Goldman Sachs and
Deutsche Bank after graduating with Honours at London's City University.
Now, he is Managing Director of IMI Trust, a specialist company supplying
support services to financial groups.

				
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