Venture Capitalist are the most valuable and powerful source of equity funding for new ventures that are starting up. They are looking for ventures that provide market research and strategy, management-consulting, audits and evaluation, assistance in negotiating technical agreements, counseling and guidance in complying with government regulations among other things.
The important things that venture capitalist are looking for when presenting the business plan are: (1) proposal size, (2) financial projections, (3) competitive advantage, (4) company management, (5) investment recovery. Among these factors you should include successful funding preferably from the demand side: characteristics of entrepreneurs, characteristics of the request, characteristics of the enterprise, and the sources of advice.
In order for an investor to be interested in your business you must go through a evaluation process. This will consist of four stages. The initial screening is stage 1. This is a quick review of the basic venture and to see if it meets the criteria for the investor. Stage 2 is the evaluation of the business plan. This stage goes in depth on the reading of the plan and if it is going to be done the way it was pitched in the meeting. Stage 3 is oral presentation which explains the plan to the venture capitalist. Lastly, stage 4 is the final evaluation where after analyzing the plan and visiting with suppliers, customers, consultants, and others, the venture capitalist makes a final decision.
The video below will explain all the things needed to gain a venture capitalist for your company. Please take a look.
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