Venture Capital Consultants

Springboard Plc

Venture Catalyst Inc

Guide to Making Your Best Case to Investors

Get the funding you need to take your company to the next level.
By John Fuller

Raising venture capital funding can give you the edge to be a major player. But with so many companies scrambling to grab the ears of investors, what's the best way to make your business stand out?

Consider these points when presenting your company:

1. Have a solid business plan. A plan should cover what problem your business solves, who are the customers, the management team and the competition, and spell out projections for cost and revenue. Keep it short; no one will read a plan longer than 20 pages.
2. Giving a professional presentation is key to impressing investors. Learn PowerPoint – it's a business-meeting standard.
3. Be prepared to answer any and every question about your business and be willing to open the books to potential backers.
4. Ask the investors how they are going to help you besides opening their checkbooks.

Action Steps

The best contacts and resources to help you get it done

Give your pitch a test drive Find out how you will be perceived by potential investors. Take an online test and get evaluated on your company's strengths and weaknesses

I recommend:  Take the "business fundability test" from The Venture Alliance, an organization that also offers consulting and access to investors.

Plan for success Learn how to write an effective, concise business plan that provides the information investors want to know.

I recommend:  Startup business consulting firm Direct Incorporation provides a sample business plan that you can edit and update to fit the needs of your company.

Say it with PowerPoint Create a short, effective PowerPoint presentation that will provide investors with the information they're looking for in a concise and interesting way.

I recommend:  Venture capitalist Guy Kawasaki's blog provides tips on PowerPoint presentations (such as his 10/20/30 Rule of PowerPoint – 10 slides, 20 minutes long and no font smaller than 30 points) and other information from an investor's point of view.

Polish your public speaking You will need to communicate your vision and passion to investors; they are investing in you as much as your company.

I recommend:  Corporate speaking coach Joan Wood Moser's site provides tips on speaking to venture capitalists as well as individualized coaching through her company, Spoken Impact.

Tips & Tactics

Helpful advice for making the most of this Guide

• Angel investors (groups of individuals who make investments as opposed to venture capitalist firms that manage funds in the billions) are a good route for a startup that hasn't received any outside funding yet. Having angels looking out for you will also help to impress VCs.
• One page of financial projections is enough. Investors want to see basic data such as how many customers you're shooting for, but don't have the time to wade through pages of Excel spreadsheets.
• Set realistic goals in your pitch that show you know the market and how tough it is. Having sales projections of $100 million in the first year won't impress investors and will make you seem naive
• Keep your presentation to between 30 minutes and an hour. Putting investors to sleep won't help your cause.