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Q: At what stage should an entrepreneur consider approaching a top-tier venture capital investor?
A: They should approach us immediately. We like to help a company from the very beginning. Some of the early business planning can be the most important to the company's long term success.
Q: What's the best way for an entrepreneur to make the initial approach to a venture capital investor?
A: Get us an executive summary as soon as possible. There is no need to come with an introduction. The business plan should be clear and concise. Every detail is not necessary. Full resumes should be included in the executive summary. A full discussion of competition is also very important to us. Entrepreneurs in technology companies must know their competition. Technology companies must constantly be aware of the competitive world around them.
Q: What do investors look for in a business plan?
A: A clear understanding of the business. How do you plan to make money? How much money is required? Why is your company unique? Why can it overcome much larger and better financed competition? What does the competition look like, both startup and large company competition? Who are the people in your team? What are their complete backgrounds? What is the company going to focus on?
Q: How seriously do investors take the business plan?
A: Very seriously. The business plan includes your business model, your team, your competition, all of which can be the difference between success and failure in business.
Q: Which sections of the business plan are the most interesting for investors?
A: The people are the most important. The business model is often very critical. The competition discussion is always important. We understand that the best people can overcome almost anything. We also believe that a large market, and large margins can be somewhat forgiving.
Q: What should entrepreneurs consider when preparing an investor presentation?
A: It should be thorough, and detailed, but very flexible. We often ask so many questions that entrepreneurs never get past their first slide. Prepare for anything. Start from the beginning. Some partners will not have read the plan before coming into the meeting. Also, be prepared to see the various partners move in and out of your presentation, where you may have to give the pitch multiple times. Remember we look at entrepreneurs as our partners. We recommend that the entrepreneurs go into our meetings thinking about becoming our partner.
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