![]() |
![]() ![]() |
![]() |
Français | ![]() |
Contact Us | ![]() |
Help | ![]() |
Search | ![]() |
Canada Site | |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
||
Home | ![]() |
Site Map | ![]() |
What's New | ![]() |
About Us | ![]() |
Registration |
![]() |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
![]() |
![]()
5.2 Why the Investment Proposal Is ImportantYou never get a second chance to make a good first impression. Your proposal must be powerful, complete and concise. Without an investment proposal, risk capital investors won't even consider granting you a meeting. They're just too busy. So it's more efficient for them to scan your proposal (along with the dozens of others piling up on their desks) for a worthwhile investment opportunity. That's why you provide them with just enough information to pique their interest and secure that first meeting. Five Minutes to Make Your PitchWith many investment opportunities to consider, investors need to size up your company fast — in about five minutes. If you present "the deal" quickly and concisely, and they like it, they'll dig deeper into the document. But you have to hook them in those first few minutes. Otherwise, your proposal will probably be ignored. Investors will spend less than one minute on each of the areas below.1 Then they'll probably scan the proposal looking for product literature, graphs, unusual exhibits, samples, letters of recommendation and letters of intent. What Investors Want to KnowAs you begin to prepare the proposal, try to see your document through the investors' eyes. Consider whether you already have company information in written form that you could use to address these investor concerns:
Characteristics of the Company and the Industry
Terms of the Deal
Balance SheetWhile the most recent balance sheet exposes facts, and all projected balance sheets are based on hopes, investors will only look at the most recent balance sheet to get answers to these questions:
Calibre of the People in the Deal
What's Different About This Deal
|
![]() |
|||
Updated: 2005/07/12![]() |
![]() top of page ![]() |
Important Notices Privacy Statement ![]() |