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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.

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