| You need to secure money for your project. You | | | | be very prepared. |
| visit venture capitalists to see if you can get that | | | | Know Your Markets |
| money. A venture capitalist views your project as a | | | | Venture Capitalists will need to see where your |
| pure investment. A venture capitalist has no | | | | income will be coming from. Your company must |
| emotional attachment unlike you. You need to write a | | | | demonstrate a strong understanding of your |
| proposal that is structured around a venture | | | | customer base and be able to fulfil their needs. Your |
| capitalists needs, not yours. What may interest you | | | | plan also must address any potential new or growth |
| may have no relevance to your potential funder. You | | | | markets. Illustrate any research you have conducted |
| need a business plan that is 'investor-focused'. | | | | to emphasise this. |
| An investor focused business plan contains relevant | | | | Know Your Product |
| information about your project. It addresses | | | | Venture Capitalists will want to fully understand your |
| concerns, questions and should allay fears that any | | | | product. They will want you to demonstrate how the |
| potential venture capitalist may have. It should meet | | | | product that they are funding will attract customers. |
| their needs exactly. Venture capitalists exist to make | | | | The information in this section must be extensive and |
| substantial gains. They want to see a good return on | | | | also feature any potential expansions or upgrades |
| investment. By compiling an investor focused business | | | | that your product will feature. This will show that you |
| plan, it will be clear to Venture Capitalists that you | | | | have thought about long-term growth. |
| are focused, prepared and competent. | | | | Know How Management, Markets and Product Make |
| There are four areas that need to be addressed: | | | | Money |
| Management Responsibility | | | | It must be demonstrated that management can |
| Know Your Markets | | | | create links and paths between customers and |
| Know Your Product | | | | product. This element must be very strong as |
| Know How Management, Markets and Product Make | | | | ambiguous information, or an assumed relationship will |
| Money | | | | scare off any potential funder. Create a step-by-step |
| Management Responsibility | | | | guide of how their money will be processed and how |
| The strength of management assigned to the | | | | the customers money will be received. This has to be |
| project can make or break your proposal. Venture | | | | clearly shown. |
| Capitalists need reassurance that you can manage | | | | Tie in these points together and you are already in |
| their money. They will want to see a demonstrable | | | | the top 3% of all venture capital submissions. Good |
| track record in areas specific to the project you are | | | | Luck! |
| pitching. The ability of management will be tested so | | | | |