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Unformatted text preview: osing business for six years longer than he should have, because he started it with
money from friends and family.
Form should follow function, of course, but there are some expectations you should meet. How you
submit a plan, and the form you use, should depend a great deal on the underlying objective. What
you do for a mainstream venture capitalist should be tailored for that use, and different from what
you’d do for a bank loan application. What Investors Want to See
• Show how much money you seek and how much ownership you offer. How much do you think
your company is worth? • List current shareholders and outstanding blocks of stock, existing options, and potential dilution. • A strong management team, with a good track record. • A believable business model. • Good credible evidence of interesting potential growth. Investors Expect a Summary Memo
Mainstream venture capitalists and most angel investors expect to see a 2-10 page Summary Memo
ﬁrst, before they see a complete business plan. The Summary Memo gives its readers a quick but
practical view of the business concept, the market, the management team, strategy, and basic
ﬁnancials. Professional investors use this document to decide whether they want to see the full plan.
The Summary Memo is sometimes called an Executive Summary, but it is not the same thing as the
ﬁrst chapter of a normal business plan, also called Executive Summary. Its business objective is to
interest investors in talking to the management team and looking at the complete plan. It needs to
highlight and present the most important information that helps in that process.
Don’t prepare just a Summary Memo instead of a plan. The purpose of the Summary Memo is to get
an investor to ask for the whole plan, so of course you have to have the plan ready to go before you
show the Summary Memo. CHAPTER 22: GETTING FINANCED 22.7 Most Investors Want a Presentation
If you are looking for venture capital or angel investment, you should prepare a slide presentation
covering the same c...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.
- Winter '09