What should I prepare to get funding for my startup?

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To process financing your startup Various materials need, depending on the requirements of signing Venture Capital collaborate with. But at least, need a description of your business, an executive summary, a presentation and business plan.

Let's do a brief review of these elements.

Description of your business

It is what the Americans call "elevator pitch": is to describe your business 20-30 seconds. It is a description from one to three paragraphs that describe the business (product and market) and equipment. In order to transmit the essence in this short space, should be "to the point".

Executive Summary

The executive summary is a description of one to three pages about your product, the market and the team. It is important that your clothing will be the first selection filter. Must have "substance", Content on business. We also will demonstrate its communication capacity.

You must indicate the need covering, its advantage relative to competitors and the capacity your team to execute the plan. Complete the summary financial projections about what you expect from your business.

When going to a VC firm typically include email the description of your business in the body of the email and attach as a document the executive summary.

Presentation

If you pass the initial filter, be asked to make a presentation of your business. Normally consist of a "Powerpoint" 15 a 25 pages. Find out in advance the time available and adjust the timing budget presentation. Try to make your presentation more visually appealing as talking. Focus on communicating basic points of interest to investors:

1.- What problem does your product.

2.- What is the market size.

3.- Implementation capacity of the equipment.

4.- What is your competitive advantage.

5.- Where are they now.

6.- To where they want to: plans and objectives.

7.- Financial Projections.

All this can be explained with 8-10 pages.

The business plan

A business plan is a document of a 30 pages in which are explained in more detail the points that we have seen in the "presentation".

The preparation of the plan will allow you to at least think about your business. Depending on the Venture Capital firm with working, will give more or less importance, (a friend in these firms has confessed that sometimes not even reach read), but I will ask for all occasions, so it's better to have it ready. It is an opportunity to convey your communication skills and clarity of ideas. Better take it and add "points" in your favor.

Financial Projections

If you have the ability to make accurate financial forecasts, should manage a "hedge fund" and not be aware of your business and if you get finance. Sales forecasts are always wrong and more, when a company is born. The top line (sales) is the most important and less predictable. But why not forget about the numbers. The part that you control, expenses, must be planned and well managed. And you must show that dominates their numbers and know which are critical and non- (for example, why you are having to acquire a new customer).

Demonstration

If your product lends itself to this, ready a demo. It will be more important than a "Business Plan". The paper "is patient", but in a show is to see the essence of your proposal. Also, to work in a "lean", with the least possible investment, their ability to build prototypes and test them in the market is very important. And if your demo works properly, you can see the twinkle in the eyes of your audience. This is worth more than any business plan.

Legal Audit and Due Diligence

If you are asked a series of documents relating to the statutory audit, is a sign that the process is well under way. In this process, we recommend you do not try to hide anything and that any points that might cause a difficulty is explained clearly and transparently. The auditing process or "due diligence" on a general level, I have commented in this post.

In addition to preparing the necessary materials, need to find a Venture Capital company that fits our needs. But this will be a matter to be discussed in a future post.

Consult your case by clicking here.

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