Very seldom do investors just fall into the lap of an early stage venture. A founder has to go out an hunt these opportunities; their weapon being the investor proposal.
First some sort of contact has to be made, and typically a phone call is set up to learn more. From there the investor will ask for more information. What they’re asking for is an investor proposal. This is somewhere in the neighborbood in length and content of an executive summary and a business plan. The shorter the better.
We’ve invested in over 100 different startups in the last three years, so we’ve seen our fair share of both amazing investor proposals, as well as embarrassingly bad ones. Here is a list of the biggest mistakes we see:
-The deal’s structure is either sloppy or absent
-The writing is piss/poor and alludes to any number of other unknown weaknesses the founder probably possesses
-The content doesn’t focus on the meat of the opportunity
-The hypotheses discussed are not realistic
-Too many rookie-red flags are shown
These are the steps we’ll go through to create your investor proposal:
1. We’ll set up a phone call with one of our startup experts for a consultation. The goal of this phone call will be to (a) learn more about your company (b) determine the more likely ways that you’ll personally need an investor proposal (c) provide our opinions as to some strategy and structure and then (d) learn more about the who/what/when/where/how of the opportunity so we can…
2. We will then write a rough draft given the information that we have, and email you a copy of it.
3. You’ll make edits and provide feedback.
4. We’ll make changes accordingly and send you the final copy. If it requires further changes we’ll be happy to do so.
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To order an investor proposal, the first step is to start a casual email conversation with someone from our team. So fill out the contact form below and we’ll get back to you ASAP.