What are venture capitalists looking for in a business plan

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Reference no: EM132375905 , Length: word count : 2000

Assignment – Collaborate session

Based on your proposal presented in Assignment 1, in Assignment 2, you are required to prepare a full business plan that could be submitted to a venture capitalist. It is assumed that you have successfully negotiated the first hurdle presented by Assignment 1 and have now been given the opportunity to present this plan.

The aim is to secure seed funding from a venture capitalist that will support the establishment and early stage growth.

Given that you are seeking to secure a substantial investment, your business plan must be a sales document as well as a detailed explanation of the market opportunity and financial outcomes.

What are venture capitalists looking for in a business plan?

Investors such as venture capitalists will look hard at;

• the size of the proposed new venture,

• the financial projections - and whether they are soundly based and whether there is a worthwhile ROI in your proposal for them,

• whether they will be able to at least recover their investment and, hopefully, make a good profit from it,

• what the competitive advantage of the proposed new venture is

• and they will also look at the skills and abilities of the management of the proposed venture.

They apply a 'laser like focus' to these aspects. Just as you should in your business plan too.

Assignment 2 – Venture Business Plan

WORD LIMIT: 2000 words

ITEM

1. Executive Summary

Succinct overview of entire report is provided

2. Introduction

Purpose of the report is clearly stated including the particular outcome being sought. Is clearly stated  the plan is aimed at the relevant ‘Client’ (Marriott representative of your group’s chosen Hotel).

3. Venture Description

a)  Background to the venture: how was the concept conceived?

b)  Description of the venture is professionally presented.

4. Management

a)  Clear rationale is given for a particular type of legal structure.

b)  Strategic planning approach identified and discussed.

5. Marketing Plan

a)  Target audience is clearly identified.

b)  Brief description of communication strategy. Clear rationale demonstrating a link with the particular target audience.

6. Competitor Analysis

a)  Brief analysis of the particular market is given.

b)  Rationale clearly demonstrates how the venture concept can be distinguished from competitors.

7. Financial Analysis

b) The details of the Corporate Venture Capital funding being sought is identified and a logical discussion of related implications.

c) Statements are provided which help to communicate key financial data associated with the venture including ROI rationale.

8. Risks and challenges

The key challenges facing the venture are identified, described and rationale given for how they will be addressed.

9. Presentation of Report

The report is professionally prepared; i.e., logical structure, free of all spelling and grammatical errors, strong sentence structure. The analysis and rational is unambiguous. Appropriate use of references and referencing.

Reference no: EM132375905

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