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Writing a Business Plan

Team sequoia.

When Brian, Joe and Nate founded Airbnb, they had an air mattress, entrepreneurial passion, and a vision for reinventing travel and hospitality, but no clear idea how to approach VCs or how to craft a pitch deck.

They came across Sequoia’s guide for how to write a business plan and the rest is history . They made a great deck.

But it wasn’t really the slides we liked—it was their ideas, the clarity of their thinking, and the scope of their ambition. We love partnering with founders hell-bent on bringing an idea to life that conventional wisdom deems impossible. And we love to partner early— when an idea is newly formed and has the maximal room to grow.

You can find our guide to pitching below (with a few refinements from years of use).

Company purpose Start here: define your company in a single declarative sentence. This is harder than it looks. It’s easy to get caught up listing features instead of communicating your mission.

Problem Describe the pain of your customer. How is this addressed today and what are the shortcomings to current solutions.

Solution Explain your eureka moment. Why is your value prop unique and compelling? Why will it endure? And where does it go from here?

Why now? The best companies almost always have a clear why now? Nature hates a vacuum—so why hasn’t your solution been built before now?

Market potential Identify your customer and your market. Some of the best companies invent their own markets.

Competition / alternatives Who are your direct and indirect competitors. Show that you have a plan to win.

Business model How do you intend to thrive?

Team Tell the story of your founders and key team members.

Financials If you have any, please include.

Vision If all goes well, what will you have built in five years?

Venture Capital Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Financial Services

Are you about starting a venture capital firm ? If YES, here’s a complete sample venture capital business plan template & feasibility report you can use for FREE to raise money .

If you are interested in the capital market and you have some form of financial expertise and certifications, one of the businesses that you can conveniently start is a venture capital firm. As a venture capital firm, your responsibility is to pool capital from investors and then invest it in startups businesses.

Aside from the money invested, venture capitalists also ensure that they provide the capacity and support which startups companies need to grow and become profitable. The first step you need to take if you want to start your own venture capital firm is to conduct an extensive research on venture capital firm.

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A Sample Venture Capital Firm Business Plan Template

1. industry overview.

The Venture Capital and Principal Trading industry is an industry that comprises of firms and investment consultants basically acting as principals in the buying or selling of financial contracts. Essentially, principals in this context are investors who trade (buy or sell) for their own account, rather than on behalf of their clients.

This industry consist of venture capital firms, investment clubs and venture  settlement companies and does not include investment bankers, securities dealers and commodity contracts dealers trading as principals.

It is a fact that, the Venture Capital and Principal Trading industry is growing faster than most industries in the financial services sector not only in the united states but across the global market. Industry value added (IVA), a measure of the industry’s contribution to the overall economy, is projected to increase at a 6.9 percent annualized rate over the next 10 years.

Indeed, the Venture Capital and Principal Trading industry is a very large and thriving industry not only in the developed nations, but also in developing and under developing countries of the world. Statistics has it that the Venture Capital and Principal Trading industry in the United States of America, is worth $106 billion, with an estimated growth rate of 4.2 percent.

There are about 29,069 registered and licensed venture capital firms in the United States and they are responsible for employing about 74,814 people. It is important to state that there is no company with a dominant market share in this industry; the industry is open for fair competitions for the available market.

Over and above, the main reasons for starting a venture capital firm is obviously to provide funding for startup companies with great potential of making profits and growing big in the future.

So your responsibility is not just to raise capital but also to look for startup companies where the capital can be invested and it will generate good returns for over a period of time. The truth is that it takes a core professional to be able to identify a startup company that has the potential to grow and become profitable if funds and pumped into it.

2. Executive Summary

St. Martins& Associates, LLP is a registered, licensed and accredited venture capitalist firm that will be based in New York City – New York.

The company will handle all aspect of venture capitalists services such as investing in financial contracts on own account, participating in investment clubs (group of people who pool their money to make investments), mineral royalties or leases dealing (as principal in dealing to investors), oil royalty dealing (as principal in dealing to investors), vertical settlement (purchasing life insurance policy at a discount to later collect the death benefit), venture capital (investing in startups and small businesses with long-term growth potential), trade in financial products and other relevant investment advisory and consulting services.

We are aware that to run a standard venture capital firm can be demanding which is why we are well trained, certified and equipped to perform excellently well. St. Martins & Associates, LLP is a client – focused and result driven venture capitalist firm that provides broad- based services.

We will offer trusted and profitable venture capitalists services to all our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they invest their funds with us.

At St. Martins & Associates, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in venture capitalist line of business and other investment portfolios with good track record of return on investments.

St. Martins & Associates, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in the venture capitalists line of business in the whole of New York City, and also to be amongst the top 20 venture capitalists firms in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that New York is the right place to launch our venture capitalists business before expanding our investment portfolio sourcing for start – ups from other cities in The United States of America.

St. Martins & Associates, LLP is founded by Martin Yorkshire and his business partners for many years Carlos Dominguez. The organization will be managed by both of them since they have adequate working experience to manage such business.

Martin Yorkshire has well over 15 years of experience working at various capacity as a venture capitalist for leading investment banks and related firms in the United States of America. Martin Yorkshire graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is an accredited and certified venture capitalist.

3. Our Products and Services

St. Martins & Associates, LLP is going to offer varieties of services within the scope of the financial investment services industry in the United States of America. Our intention of starting our St. Martins & Associates, LLP firm is to work with promising start – ups and other business ventures.

We are well prepared to make profits from the Venture Capital and Principal Trading industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

• Investing in financial contracts on own account
• Participating in investment clubs (group of people who pool their money to make investments)
• Mineral royalties or leases dealing (as principal in dealing to investors)
• Oil royalty dealing (as principal in dealing to investors)
• Vertical settlement (purchasing life insurance policy at a discount to later collect the death benefit)
• Venture capital (investing in startups and small businesses with long-term growth potential)
• Trade in financial products
• Related investment consulting and advisory services

4. Our Mission and Vision Statement

• Our vision is to build a venture capitalists brand that will become one of the top choices for investors in the whole of New York City – New York.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to position the business to become one of the leading brands in the Venture Capital and Principal Trading industry in the whole of New York City, and also to be amongst the top 20 venture capitalist firms in the United States of America within the first 10 years of operations.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard venture capitalist firm in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have qualified, competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of the venture capitalist firm we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York and environs as long as they are willing and ready to work with us to achieve our business goals and objectives. Below is the business structure that we will build St. Martins & Associates, LLP;

• Chief Executive Officer
• Venture Capitalists Consultants

Admin and HR Manager

Risk Manager

• Marketing and Sales Executive

Chief Financial Officer (CFO) / Chief Accounting Officer (CAO).

• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Venture Capitalist Consultants

• Provides market research and implementing new investment product and strategies
• Creates research and review platforms for new, existing and potential investment products
• Exceeds client expectations with returns on investments
• Works closely with analysts and traders to ensure trading strategy is carried out correctly
• Construct and review performance reports to show to investors
• Works directly with marketer to relay investment strategy and risk measures for website and other forms of marketing for your hedge fund
• Performs due diligence visits and assessing investment management firms and quantitatively analyzing investment pools
• Has extensive knowledge of industry policies and regulations set in place by the SEC
• Focuses on capital introductions and networking to sign up new investors to your fund
• Plans, designs and implements an overall risk management process for the organization;
• Risk assessment, which involves analyzing risks as well as identifying, describing and estimating the risks affecting the business;
• Risk evaluation, which involves comparing estimated risks with criteria established by the organization such as costs, legal requirements and environmental factors, and evaluating the organization’s previous handling of risks;
• Establishes and quantifies the organization’s ‘risk appetite’, i.e. the level of risk they are prepared to accept;
• Risk reporting in an appropriate way for different audiences, for example, to the board of directors so they understand the most significant risks, to business heads to ensure they are aware of risks relevant to their parts of the business and to individuals to understand their accountability for individual risks;
• Corporate governance involving external risk reporting to stakeholders;
• Carries out processes such as purchasing insurance, implementing health and safety measures and making business continuity plans to limit risks and prepare for if things go wrong;
• Conducts audits of policy and compliance to standards, including liaison with internal and external auditors;
• Provides support, education and training to staff to build risk awareness within the organization.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Marketing / Investor Relations Officer

• Identifies, prioritizes, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

St. Martins & Associates, LLP engaged the services of a core professional in the area of business structuring to assist our organization in building a well – structured venture capitalist firm that can favorably compete in the highly competitive Venture Capital and Principal Trading industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for St. Martins & Associates, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of St. Martins & Associates, LLP;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money ( good returns on their investment ) and also to increase our annual returns; a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new venture capitalist firm, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated Venture Capital and Principal Trading industry that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

• Opportunities:

The opportunities in the Venture Capital and Principal Trading industry is massive considering the number of small businesses who would need financial supports and strategies from venture capitalists to grow their business and increase their profits.

As a standard and accredited venture capitalist firm, we are ready to take advantage of any opportunity that comes our way.

Venture capitalist firms services involves large amount of cash and it is known to be a very high risk venture,      Hence, whoever chooses to manage it must not just have solid investment background, but must also know how to handle risks and discover potential thriving businesses and opportunities.

The truth is that if you are not grounded in risks management as a venture capitalist, you may likely throw away peoples’ monies and investment. Just as in any other business and investment vehicles, economic downturn, unstable financial market and unfavorable government economic policies can hamper the growth and profitability of venture capitalist firms.

7. MARKET ANALYSIS

• Market Trends

A close watch on the Venture Capital and Principal Trading industry shows that in the dawn of recessionary declines, the industry is expected to continue on a path to growth, but not without a few more ups and downs. This group of firms and individuals has benefited from rising security prices and increasing merger and acquisition activity over the last five years.

As a result of this trend, Venture Capital and Principal Trading industry revenue is expected to grow over the five-year period at an annualized rate of 9.1 percent to $42.9 billion in 2016.

The revenue growth for the industry was restrained in the early part of the period as the industry was reluctant to bounce back from the financial crisis and subsequent recession of the prior period that caused stock markets and business activity to dramatically contract in the United States and of course in the global market.

On the average, it is trendy to find venture capital firms employ strategies that can help them reduce market risk specifically by shorting equities or through the use of derivatives.

8. Our Target Market

The main reasons for starting a venture capital firm is obviously to provide funding for startup companies with great potential of making profits and growing big in the future. So your responsibility is not just to raise capital but also to look for startup companies where the capital can be invested and it will generate good returns for over a period of time.

The truth is that it takes a core professional to be able to identify a startup company that has the potential to grow and become profitable if funds and pumped into it.

As a standard, accredited and licensed venture capitalist firm, St. Martins & Associates, LLP offers a wide range of investment portfolio management services hence we are well trained and equipped to services a wide range of clientele base and start – ups.

Our target market cuts across businesses and investors that have the required capital to invest in start – ups and other investment portfolios. We are coming into the industry with a business concept and investment strategies that will enable us produce good returns on investment for ourselves and our clients.

Below is a list of the individual and organizations that we have specifically design our products and services for;

• Small and medium scales businesses
• Accredited Investors
• Start – ups
• Investment Clubs
• Top corporate executives
• Corporate Organizations / Blue Chip Companies

Our Competitive Advantage

Despite the fact that venture capitalist investment strategies give huge returns on investment, it is indeed risky venture. If you drive through the street of New York City, you will come across several venture capitalists firms and related business ventures; that goes to show you that there is competition in the industry.

For you to survive as a venture capitalist firm, you should be able to come up with workable investment strategies; strategies that will help you attract the required cash / capital and above all you should be a good risks manager and one that can spot a potential thriving business from afar.

We are quite aware that to be highly competitive in the Venture Capital and Principal Trading industry means that we should be able to give good returns on investments to our clients, turn around the fortune of a dying company for good , spot potential successful business ideas and invest in them, deliver consistent quality service, our clients should be satisfied with our investment strategies and we should be able to meet the expectations of clients.

St. Martins& Associates, LLP might be a new entrant into the Venture Capital and Principal Trading industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified portfolio management experts in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups venture capitalist businesses) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

St. Martins& Associates, LLP is established with the aim of maximizing profits in the Venture Capital and Principal Trading industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. St. Martins& Associates, LLP will generate income by offering the following investment related services;

10. Sales Forecast

One thing is certain, there would always be accredited investors, small scale and medium scale businesses and wealthy individuals who would need the services of tested and trusted venture capitalist firms.

We are well positioned to take on the available market in New York City and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City to other cities in the United States of America.

We have been able to critically examine the Venture Capital and Principal Trading industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in New York City.

Below is the sales projection for St. Martins& Associates, LLP, it is based on the location of our business and the wide range of investment management services that we will be offering;

• First Fiscal Year-: $750,000
• Second Year-: $1.5 Million
• Third Year-: $3 Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competition amongst venture capitalists firms and other related financial investment cum consulting service providers in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis, so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our return on investment and excellent job deliveries speaks for us in the market place; we want to build a standard venture capitalist business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our venture capitalists firm to become one of the top 20 venture capitalist firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the New York City but also in other cities in the United States of America.

St. Martins& Associates, LLP is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, start – ups, accredited investors, entrepreneurs and key stake holders in New York City and other cities in The United States
• Advertise our business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local finance and business expos, seminars, and business fairs et al
• Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver good returns on investment
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

The uniqueness of the Venture Capital and Principal Trading industry is such that it is the result they produce that helps boost their brand awareness.

Venture capitalists firms do not go out there to source any businesses or investors that they can come across but they are strategic when it comes to inviting investors to invest in a project or when it comes to acquiring a struggling company.

It will be out of place to boost your venture capitalist firm brand if you have not proven your worth in the industry. If you have successfully proven that you have what it takes to operate a successful venture capitalist firm, then you next port of call is to strategically engage the media to help you promote your brand and also to create a positive corporate identity.

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the Venture Capital and Principal Trading industry by storm which is why we have made provisions for effective publicity and advertisement of our venture capitalist firm. Below are the platforms we intend to leverage on to promote and advertise St. Martins & Associates, LLP;

• Place adverts on both print ( community based newspapers and magazines ) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around New York City.
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Venture capitalists are known to generate income from various investment portfolios hence there are no pricing models for this type of business.

But on the other hand, they tend to negotiate with their financial partners on percentage whenever they invest their hard earned money in an investment vehicle handled by a venture capitalist firm. At St. Martins& Associates, LLP we will ensure that we give good returns on investment (ROI) and always maximize profits.

• Payment Options

At St. Martins & Associates, LLP our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

The cost of starting a venture capitalists firm is in the two fold; the cost of setting up the office structure and of course the capital meant for investment. The amount required to invest in this line of business could range from 1 Million US Dollars to even multiple Millions of Dollars. So you must employ aggressive strategies to pool such cash together.

As regard the cost of setting up the office structure, your concern should be to secure a good office facility in a busy business district; it can be expensive though, but that is one of the factors that will help you position your hedge fund firm to attract the kind of investors you would need. This is the financial projection and costing for starting St. Martins & Associates, LLP;

• The Total Fee for incorporating the Business – $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The cost for purchase of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
• The Cost of Launching your official Website – $600
• Budget for paying  at least three employees for 3 months plus utility bills – $10,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Investment fund – 1 Million Dollars
• Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need $150,000 excluding $1M investment capital to successfully set – up a medium scale but standard venture capitalist firm in the United States of America.

Generating Funding / Startup Capital for St. Martins & Associates, LLP

St. Martins & Associates, LLP is a business that will be owned and managed by Martin Yorkshire and his business partners for many years Carlos Dominguez. They are the sole financial of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 ( Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting St. Martins & Associates, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to give investors good returns on their investment.

We will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Securing a standard office facility in New York City: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

Venture Capital Business Plan

As a startup company, one of the most important things you can do is to create a business plan that will secure funding from venture capitalists. But what exactly is a business plan for a venture capitalist?

A business plan is a comprehensive document that outlines the business goals and strategies of a company seeking venture capital investment. It typically includes detailed information about the company’s product or service, market analysis, financial projections, and management team bios.

A business plan for potential investors must be well-written and well-presented to impress those looking to fund your business. It should clearly state why the company needs funding and how it will be used. The financial projections should be realistic and backed up by market research. The management team should be able to demonstrate their expertise in running a business.

If you are a startup company looking for venture capital investment, it is essential to create a well-crafted business plan that will impress potential investors.

Who are Venture Capitalists? 

A venture capitalist (VC) is an individual or firm that invests its capital in startup companies in exchange for ownership equity. They are typically looking for high-growth businesses with solid business plans and a team of experienced entrepreneurs.

VCs can provide much-needed capital to young companies, but they also bring expertise and guidance. In return for their investment, VCs typically require a seat on the company’s board of directors and a share of the profits.

What are Venture Capital Firms? 

A venture capital firm is an organization that invests money in startup companies in exchange for a percentage of ownership in the company. In return for their investment, venture capitalists typically require a seat on the company’s board of directors and a share of the profits.

There are many venture capital firms around the world, but not all of them are interested in investing in every type of company. It is important to do your research and find the right VC firm for your business.

Types of Venture Capital Investment

There are two main types of venture capital investment: equity financing and debt financing.

Equity financing is when VCs invest venture capital in exchange for a percentage of ownership in the company. This type of financing is typically used by early-stage companies that need a large amount of capital to get started. In return for their investment, VCs typically require a seat on the company’s board of directors and a share of the profits.

Debt financing is when VCs provide a loan of venture capital to the company in exchange for interest payments. This type of financing is typically used by more established companies that need a smaller amount of capital. In return for their investment, VCs typically require a personal guarantee from the company’s founders.

There are different stages of investment or funding for startup companies . They are:

Seed Funding

Seed funding is the earliest stage of venture capital investment. It typically goes to businesses just starting and has not yet launched their product or service. Seed funding can be used to cover the costs of research and development, marketing, and other early-stage expenses.

Series A Funding

Series A funding is the next stage of venture capital investment. It is typically used to finance the launch of a product or service, expand into new markets, or hire additional staff. Series A funding can also be used to cover the costs of marketing and advertising.

Series B Funding

Series B funding is a form of venture capital that is usually used to help a company grow at a faster pace. It can be used to finance the expansion of a business into new markets, hire additional staff, or develop new products or services.

Series C Funding

Series C funding is typically used by companies that are ready to go public or be acquired by another company. It can also be used to finance a major expansion, such as the opening of new offices or the launch of a new product line.

How to Raise Venture Capital and VC Funding

There are several ways to raise venture capital for your startup company. One option is to take out loans from family, friends, or banks. Another option is to sell equity in your company to a venture capitalist.

If you are selling equity in your company for venture capital, it is important to have a well-crafted business plan that will impress potential investors. Your business plan should include detailed information about your product or service, market analysis, financial projections, and management team bios.

You can also use crowdfunding platforms to raise capital from a large group of people. crowdfunding is a great way to get your business off the ground, but it is important to remember that you will be giving up a percentage of ownership in your company.

What Capital Raising Options are Available for a Business?

There are a few different types of capital-raising options available for businesses. The most common options are:

One option for raising capital is to take out loans from banks or other financial institutions. This type of financing is typically used by more established businesses that have a good credit history.

Venture Capital

Another option for raising capital is to take out investments from a venture capitalist. A venture capitalist is an individual or firm that invests money in startup companies in exchange for a percentage of ownership in the company.

Crowdfunding

Crowdfunding is a newer form of financing that allows businesses to raise money from a large group of people via the internet. There are several crowdfunding platforms available, such as Kickstarter and Indiegogo.

Initial Public Offering (IPO)

An IPO is when a company sells shares of stock to the public for the first time. This type of financing is typically used by more established companies that are looking to raise a large amount of capital.

Small Business Administration (SBA) Loans

The SBA is a government agency that provides loans to small businesses. These loans are typically used by businesses that may not qualify for traditional bank financing.

Which Capital Raising Option is Right for Your Business?

The type of capital-raising option that is right for your business will depend on many factors, such as the stage of your business, the amount of money you need to raise, and your credit history.

If you are just starting, you may want to consider crowdfunding or an SBA loan. If you have a good credit history, you may be able to get a bank loan. If you are looking to raise a large amount of money, you may want to consider an IPO.

No matter which option you choose, it is important to have a well-crafted business plan that will impress potential investors. Your business plan should include detailed information about your product or service, market analysis, financial projections, and management team bios.

Startup Companies Business Plan Template

If you are a startup company looking for venture capital investment, it is essential to create a well-crafted business plan that will impress potential investors. Use this business plan template to get started:

Executive Summary

The executive summary is a brief overview of your company’s history, mission, and objectives. It should be no more than two pages long.

Company Description

The company description should provide an overview of your business, including your products or services, market analysis, and target customers.

Management Team

The management team section should include bios of your executive team and any other key personnel.

When writing about the management team section of a business plan, you should include bios of your executive team and any other key personnel. This section should also include a description of each team member’s experience and qualifications. This is also a great section to include the management team’s motivation and why the business is raising money.

Financial Projections

The financial projections section should include your company’s historical financial information, as well as your projected income statement, balance sheet, and cash flow statement.

When writing about the financial projections section of a business plan, you should include your company’s historical financial information, as well as your projected income statement, balance sheet, and cash flow statement. This information will help potential investors understand how your company is performing financially and what the future outlook is for your business.

Investor Information

The investor information section should include your company’s equity structure and any terms or conditions that would be attached to an investment.

This business plan template will help you get started on creating a professional and impressive business plan that will attract venture capitalists. Remember to tailor the template to your specific business needs.

Raising Venture Capital FAQs

What is venture capital.

Venture capital is a type of investment that is typically used to finance the launch or expansion of a business. Venture capitalists are usually interested in high-growth companies with the potential to generate large returns.

How do I raise venture capital?

There are several ways to raise venture capital, including taking out loans, selling equity in your company, or using crowdfunding platforms. It is important to have a well-crafted business plan when seeking investment from venture capitalists.

What are the different types of venture capital investment?

The three main types of venture capital investment are seed funding, series A funding, and series B funding. Seed funding is typically used to finance the launch of a new business, series A funding is used to finance the expansion of a business, and series B funding is typically used to finance the go public or being acquired by another company.

• Business Planning
• Venture Funding

How to Start a Venture Capital Firm

Starting a venture capital firm can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful venture capital firm.

Importantly, a critical step in starting a venture capital firm is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Venture Capital Firm :

• Choose the Name for Your Venture Capital Firm
• Develop Your Venture Capital Firm Business Plan
• Choose the Legal Structure for Your Venture Capital Firm
• Secure Startup Funding for Your Venture Capital Firm (If Needed)
• Secure a Location for Your Business
• Register Your Venture Capital Firm with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Venture Capital Firm
• Buy or Lease the Right Venture Capital Firm Equipment
• Develop Your Venture Capital Firm Marketing Materials
• Purchase and Setup the Software Needed to Run Your Venture Capital Firm
• Open for Business

1. Choose the Name for Your Venture Capital Firm

The first step to starting a venture capital firm is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own venture capital firm:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your venture capital firm.

2. Develop Your Venture Capital Firm Business Plan

One of the most important steps in starting a venture capital firm is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your venture capital firm.
• Company Overview – this section tells the reader about the history of your venture capital firm and what type of venture capital firm you operate. For example, are you a sector-focused venture capital firm, stage-focused venture capital firm, or a geography-focused venture capital firm?
• Industry Analysis – here you will document key information about the venture capital industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your venture capital firm? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your venture capital firm make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your venture capital firm.

Next you need to choose a legal structure for your venture capital firm and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the venture capital firm and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a venture capital firm together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a venture capital firm include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a venture capital firm is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your venture capital firm, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Venture Capital Firm (If Needed)

In developing your venture capital firm business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a venture capital firm to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a venture capital firm that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your venture capital firm. You’ll want to make sure the area is accessible, has a strong economy, and is conducive to business. You may also want to consider the cost of living and doing business in the area.

6. Register Your Venture Capital Firm with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your venture capital firm’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your venture capital firm to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

A venture capital firm typically requires a number of licenses and permits to operate. The most important one is the securities license, which allows the firm to engage in investment activities. Other licenses that may be required include a business license, banking license, insurance license, and a broker-dealer license.

10. Get Business Insurance for Your Venture Capital Firm

The type of insurance you need to operate a venture capital firm may vary depending on the state. 

Some business insurance policies you should consider for your venture capital firm include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Venture Capital Firm Equipment

To run a venture capital firm, you will need a computer, internet access, and a phone. You will also need office supplies, such as a printer, paper, and pens. Additionally, you’ll need some office furniture such as a desk, table, and chairs. 

12. Develop Your Venture Capital Firm Marketing Materials

Marketing materials will be required to attract and retain customers to your venture capital firm.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your venture capital firm. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional venture capital firm website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your venture capital firm.

13. Purchase and Setup the Software Needed to Run Your Venture Capital Firm

Venture capital firms need software to help manage and track investments. Some popular software programs used in the industry include venture capital (VC) management software, deal flow management software, and customer relationship management (CRM) software.

14. Open for Business

You are now ready to open your venture capital firm. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Venture Capital Firm FAQs

Is it hard to start a venture capital firm.

A venture capital firm is not hard to start because the barriers to entry are low. The main cost is time, and there are many resources available to help you get started.

How can I start a venture capital firm with no experience?

The best way to start a venture capital firm with no experience is by networking and reaching out to those who have experience in the industry. You can also read books and articles on the topic, attend industry events, or speak with professionals in the field. Having a strong understanding of the venture capital process will help you build a successful firm.

What type of venture capital firm is most profitable?

The most profitable venture capital firm is a private equity firm. Private equity firms raise large amounts of money and invest it in companies with high growth potential. These firms typically hold on to their investments for an extended time, which allows them to reap the rewards when the companies they invest in are successful.

How much does it cost to start a venture capital firm?

It can cost anywhere from $5,000 to $1,000,000 to start a venture capital firm. The amount of money required depends on the size and scope of the firm, as well as the location.

What are the ongoing expenses for a venture capital firm?

There are a variety of ongoing expenses for a venture capital firm. Some of these expenses include the costs of personnel, legal and accounting services, office space, and communications. Additionally, a venture capital firm typically sets aside a certain amount of money each year for investments, and this can also be considered an ongoing expense.

How does a venture capital firm make money?

A venture capitalist makes money by investing in startup and portfolio companies then selling their shares in those companies when they go public or are sold. Firms typically charge a management fee and a percentage of the profits earned on their investments. Venture capital fund managers often invest their own money in the fund alongside the money they raise from investors.

Is owning a venture capital firm profitable?

Yes, owning a venture capital firm can be quite profitable. The main reason is the venture capital industry is growing rapidly, and there is a lot of money to be made by investing in new businesses. Additionally, VC fund managers usually receive a percentage of the profits from the businesses they invest in, so they can make a lot of money even if the businesses they back only experience modest success. Pension funds , endowments, and other institutional investors are also increasingly interested in investing in venture capital funds, so there is a lot of demand for this type of investment. This means that VC firms can charge high fees, which leads to healthy profits.

Why do venture capital firms fail?

One reason venture capitalists may fail is because they do not have an experienced team to make decisions and provide guidance. In addition, they may not have the right contacts or network to acquire clients. Furthermore, they may not plan their business or budget properly, which can lead to failure.

Other Helpful Business Plan Articles & Templates

How to Write a Venture Capital Business Plan

As the owner or CEO of a small business, you may be considering seeking venture capital investment at some point in the growth of your company. Venture capitalists are individuals or firms that invest in high-growth businesses, typically in exchange for equity.

There are several benefits to seeking venture capital investment, including the potential for a large infusion of cash and the ability to tap into the expertise of experienced investors. However, there are also some drawbacks to consider, such as giving up a portion of ownership in your company and potentially losing some control over its direction.

If you do decide that seeking venture capital investment is the right move for your business, you’ll need to put together a comprehensive business plan that outlines your company’s current state, its growth potential, and your plans for achieving that growth.

Tips for Writing a Business Plan for Venture Capital Firms

Here are some tips to help you write a venture capital-worthy business plan:

• Do your homework. Before you start writing your business plan, do your research on the venture capital process and what professional investors are looking for. This will help you craft a plan that is tailored to the needs of potential investors.
• Keep it clear and concise . Venture capital investors are busy people, so make sure your business plan is clear and to the point. When writing your business plan it is important to consider the investor’s perspective and include only the most essential information and present it in an easy-to-read format.
• Focus on growth potential . VCs are primarily interested in investing in businesses with high growth potential. Be sure to highlight your company’s unique selling points and explain how you plan to achieve rapid growth.
• Put together a solid team . Investors will also want to see that your company has a strong management team in place. Make sure to highlight the experience and accomplishments of your key team members.
• Have a clear exit strategy. Venture capital investors typically invest with an eye toward eventually selling their equity stake in startup companies. As such, they’ll want to see that you have a well-thought-out plan for how and when they will be able to cash out.

By following these tips, you can put together a strong business plan that will appeal to potential venture capitalists and give you the best chance of securing the investment you need to grow your business.

Benefits of Venture Capital Investment

There are several benefits to seeking venture capital investment, including:

• The potential for a large infusion of cash . Venture capitalists typically invest much larger sums of money than traditional lenders, such as banks. This can give your business the boost it needs to expand its operations and achieve rapid growth.
• The ability to tap into the expertise of experienced investors . In addition to the money they invest, VCs can also provide valuable guidance and mentorship to help you grow your business.
• The potential for a lower cost of capital . If you are able to secure venture debt rather than equity financing, you may be able to get a lower interest rate and more flexible repayment terms.

Drawbacks of Venture Capitalist Investment

There are also some potential drawbacks to seeking venture capital investment, including

• Giving up a portion of ownership in your company. In exchange for their investment, VCs will typically want to take an equity stake in your business. This means you will have to give up a portion of the ownership and control of your company.
• Losing some control over the direction of your company. VCs will typically want to have a say in how their investment is used and may even want to be involved in decisions such as hiring and firing.
• The potential for high pressure and unrealistic expectations. Because VCs are looking to make a profit on their investment, they may put pressure on you to achieve unrealistic growth targets. This can lead to a lot of stress and can even put your business at risk if you are unable to meet their expectations.

Options to Raise Capital for Small Businesses

If you’re a small business owner looking for capital, there are a number of options available to you. In addition to seeking venture capital investment, you could also:

• Apply for a small business loan from a bank or other financial institution.
• Seek out angel investors or other private investors.
• Participate in crowdfunding campaigns.
• Apply for government grants or loans.

Whatever route you decide to take, be sure to put together a strong business plan and pitch to increase your chances of success.

What is a Venture Capital Firm?

A venture capital firm is an investment company that provides financing to startups and small businesses with high growth potential. VC firms typically invest larger sums of money than traditional lenders, such as banks, and often take an equity stake in the companies they finance. In addition to the capital they provide, VC firms can also offer valuable mentorship and guidance to help small businesses grow.

Venture capitalists typically look for businesses with high growth potential that are in industries they understand well. They also typically prefer to invest in companies that are led by experienced management teams.

Venture Capitalists Business Plan Template

If you’re seeking venture capital investment for your business, you’ll need to put together a strong business plan. Your plan should include an executive summary, company analysis, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, and financial plan.

Make sure to do your research and put together a well-thought-out plan before approaching any VC firms. Remember, they are looking for businesses with high potential for growth and profitability, so you’ll need to make a strong case for why your company is worth their investment.

Executive Summary

The executive summary is the most important part of your business plan. This is where you will make your case for why your company is a good investment opportunity. Be sure to include information on your company’s history, product or service, target market, competitive advantage, and growth potential.

Company Analysis

In this section of your business plan, you will provide an overview of your company. Include information on your company’s history, mission statement, and team. Be sure to also include financial information, such as your company’s revenue and expenses.

Industry Analysis

In this section, you will provide an overview of the industry in which your company operates. Include information on industry trends, growth potential, and major players. Be sure to also include information on your target market and how your company plans to gain a competitive advantage.

Customer Analysis

In this section, you will provide an overview of your target customer. Include information on your target market’s needs and how your company plans to meet them. Be sure to also include information on your target market’s buying habits and preferences.

Competitive Analysis

In this section, you will provide an overview of your major direct and indirect competitors. Include information on their products, prices, marketing strategies, and competitive advantages. Be sure to also include information on how your company plans to compete against them.

Marketing Plan

In this section, you will provide an overview of your company’s marketing strategy. Include information on your target market, marketing mix, and promotional strategy. Be sure to also include information on your sales strategy and how you plan to generate revenue.

Operations Plan

In this section, you will provide an overview of your company’s operations. Include information on your manufacturing process, supply chain, distribution channels, and logistics. Be sure to also include information on your company’s organizational structure and how you plan to manage your team.

Financial Plan

In this section, you will provide an overview of your company’s financials. Include information on your revenue, expenses, and profits. Be sure to also include information on your funding needs, cash flow, and how you plan to use the capital you raise.

Putting together a strong business plan is essential if you’re seeking venture capital investment for your business. Be sure to do your research and put together a well-thought-out plan before approaching any VC firms. 

Venture Capital FAQs

How do i find a venture capitalist.

There are a few ways to find venture capitalists. You can attend industry events, search online directories, or contact VC firms directly.

What should I include in my business plan?

Your business plan should include an executive summary, company analysis, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, and financial plan.

What are the benefits of venture capital investment?

Venture capitalists typically invest in companies with high potential for growth and profitability. They also provide valuable resources, such as mentorship, connections, and expertise.

What are the drawbacks of venture capital investment?

One of the main drawbacks of venture capital investment is that it can be expensive. VC firms typically charge high fees, and they also take a percentage of your company’s equity.

What are my options for raising capital for my small business?

There are a few options for raising capital for a small business, including bank loans, government grants, and venture capital investment.

What is a venture capitalist?

A venture capitalist is an investor who provides capital to companies with high potential for growth and profitability. Venture capitalists typically invest in early-stage companies and take an active role in their development.

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How to Start a Venture Capital Firm [Business Plan]

A venture capital (VC) firm is a business that provides a form of private equity and a type of financing to startup companies and small businesses that are believed to have long-term growth potential. The financial resources provided by investors to startup firms and small businesses that show potential for long-term growth is called venture capital.

At the end of 2020, 1,965 venture capital firms managed 3,680 venture funds and had approximately $548 billion in US venture capital assets under management (AUM), as well as a record of $151 billion in dry powder heading into 2022. According to the National Venture Capital Association, there are about 1000 active venture capital firms in the United States.

Steps on How to Start a Venture Capital Firm

1. conduct market research.

If you are considering starting a venture capital firm, you would need reliable market research to be able to avert some unwarranted risks and of course to maximize profits from the business. The first step in the market research process should be to develop market-based research questions in line with your overall business goal and objective.

You should source for information that will help you maximize your business, data that will give you reliable information of what your potential market will be looking for from your firm, and also help you operate your venture capital firm with fewer risks, less stress, and of course, build the business to profitability within record time.

a. Who is the Target Market for Venture Capital Firm?

The target market for venture capital firms is in two parts. The first is startup companies and small businesses that are believed to have long-term growth potential.

The second are investors in venture capital funds and these are very large institutions such as pension funds, financial firms, insurance companies, and university endowments – which put a small percentage of their total funds into high-risk investments.

b. Is Venture Capital Firm a Profitable Business?

Yes, venture capital firms are profitable. Available data shows that a successful venture capital firm working for a top-tier firm can expect to earn somewhere between $10 million and $20 million a year. But it is important to state that venture capital investments incorporate a high level of risk as only some of the VC companies develop into successful and highly profitable businesses.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to venture capital firms.

d. Who are the Major Competitors?

• Tiger Global Management
• New Enterprise Associates
• Sequoia Capital
• Bain Capital Venture
• Bessmer Venture Partners
• Canaan Partners
• Khosla Ventures
• Andreessen Horowitz
• GGV Capital
• General Catalyst
• Lightspeed Venture Partners
• Google Inc. (Google Ventures).

e. Are There County or State Regulations or Zoning Laws for Venture Capital Firms?

No, there are no county or state regulations or zoning laws for venture capital firms for now, but players in this industry are expected to work with the existing regulations or zoning laws governing similar businesses in the county where their business is domiciled.

Please note that at the federal level, venture capitalists and their private equity firms are regulated by the U.S. Securities and Exchange Commission (SEC). Venture capitalists are also regulated by the SEC’s insider trading laws, which prevent the misuse of nonpublic information for financial gain. So also, financial institutions that provide venture capital must adhere to anti-money laundering and know-your-customer (KYC) regulations.

f. Is There a Franchise for Venture Capital Firm?

No, there are no franchise opportunities for venture capital firms because the nature of the business does not permit it.

g. What Do You Need to Start a Venture Capital Firm?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• Office Facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Operational Capital

Memorable Business Name ideas for Venture Capital Firm

• Green Network© Venture Capital Firm, Inc.
• Next Level® Venture Capital Firm, LLC
• Startup Solutions® Venture Capital Firm, Inc.
• Future Solutions® Venture capital firm, Inc.
• JT Morgan™ Venture Capital Firm, Inc.
• Business Base™ Venture Capital Firm, LLC.
• Morgan Peny© Venture Capital Firm, LLC
• Grow Fast® Venture Capital Firm, Inc.
• Johnson and Johnson© Venture Capital Firm, Inc.
• Merlyn Martins© Venture Capital Firm, Inc.
• Dray Danton® Venture Capital Firm, LLC
• Money House® Venture Capital Firm, LLC
• Jon Landers and Co™ Venture Capital Firm, LLC
• Finance Plug© Venture Capital Firm, Inc.
• Pantex Group® Venture Capital Firm, Inc.
• Patrick Greene™ Venture Capital Firm, Inc.
• Spadix Edwin™ Venture Capital Firm, Inc.
• Edmond George and Co© Venture Capital Firm, Inc.
• Anderson Bill® Venture Capital Firm, LLC
• Jerry Smith™ Venture Capital Firm, Inc.

Register Your Business

A. what type of business structure is best for a venture capital firm.

Even though there are several options such as partnership, limited liability company (LLC), and corporation, the one most players consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Venture Capital Firm?

• General Business License
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections for your facility

d. What Type of Certification is Needed to start a Venture Capital Firm?

• Venture Capitalist Certification
• Chartered Financial Analyst (CFA) certification.
• Certified Public Accountant (CPA) Certification.
• Financial Risk Manager (FRM) Certification.

e. What Documents are Needed to Open a Venture Capital Firm?

These are some of the basic legal documents you need to legally run a venture capital firm in the United States of America;

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval (For your office)
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a venture capital firm, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a venture capital firm.

The startup cost for a venture capital firm is not uniform. You may need a minimum of one million USD to set up a venture capital firm.

b. What are the Costs Involved in Starting a Venture Capital Firm

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
• The cost for hiring a business consultant (writing of business plans inclusive) – $4,500.
• Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $12,400.
• The cost of, accounting software, CRM software, and Payroll Software – $1,500
• The cost for leasing a facility (long-term lease agreement) – $35,600.
• The cost for facility remodeling and installation of electric charging plugs and other equipment – $10,000.
• Other start-up expenses including stationery – $500
• Phone and utility deposits will cost – ($2,500)
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
• The cost of launching an official website – $600
• Miscellaneous – $2,500

c. What Factors Determine the Cost of Opening a Venture Capital Firm?

• The size of venture capital firm (its investment funds)
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promoting, and marketing the business
• The cost of furnishing and equipping the office
• The cost of insurance policy covers
• The cost of registering the business
• Cost of recruiting and training your staff

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your venture capital firm, but if you have the required finance, it will pay you to build your administrative office. The truth is that building or reconstructing a facility will help you come up with a facility that fits perfectly into your overall business goals and vision.

e. What are the Ongoing Expenses of a Venture Capital Firm?

• Electric bills
• Utility bills (internet subscriptions, phone bills, signage, software renewal fees et al)
• Salaries of employees
• Marketing costs

f. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $80,000 Per Year
• Chief Financial Officer (CFO) / Chief Accounting Officer (CAO) – $75,000
• Venture Capitalists Consultants – $50,000 Per Year
• Admin and HR Manager – $45,800 Per Year
• Risk Manager – $45,000 Per Year
• Marketing and Sales Executive – $35,000 Per Year
• Customer Care Executive/Front Desk Officer -$30,000 Per Year

g. How Do You Get Funding to Start a Venture Capital Firm

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks.

Write a Business Plan

A. executive summary.

Merlyn Martins© Venture Capital Firm, Inc. is a registered and licensed venture capital firm that will be located in Washington D.C, U.S. and with offices in San Francisco, Houston, New York City, Boston, and Orlando. We will invest from seed to growth in startups driving transformation across industries, from SaaS, infrastructure software and security to fintech and healthcare to commerce and consumer tech et al.

b. Products and Service

Providing finance and operational expertise for entrepreneurs and start-up companies in various industries.

c. Mission Statement

Our mission is to develop a highly successful and profitable venture capital firm with a competitive advantage in the global market.

Vision Statement

Our vision is to attract over $10 billion under our management and to invest in small businesses and startups globally.

d. Goals and Objectives

The goals and objectives of a venture capital firm are to provide finance and operational expertise for entrepreneurs and start-up companies, with a key focus in technology-based sectors such as ICT, health, SaaS, agriculture, commerce, life sciences, or fintech et al.

e. Organizational Structure

• Chief Operating Officer (Owner)
• Chief Financial Officer (CFO)/Chief Accounting Officer (CAO)
• Venture Capitalists Consultants
• Admin and HR Manager
• Risk Manager
• Marketing and Sales Executive
• Customer Care Executive/Front Desk Officer

Marketing Plan

A. swot analysis.

• Excellent investment history with high ROI
• Access to finance from business partners (a large sum of equity finance)
• Experience, trained, and certified professionals.
• Excellent customer testimonials.
• In addition to capital, we will provide valuable information, resources, technical assistance to make a business successful.
• Not enough finance to run at full capacity immediately
• We may initially struggle to produce enough revenue to offer the company to the public and sell shares.
• Startups and small businesses looking for a big buyer may not be successful enough to make the grade, leaving venture capital firms stuck.

Opportunities:

• The growing number of startups in the United States.
• Build upon existing clientele
• Online market, new services, new technology, and of course the opening of new markets.
• Favorable government policies.
• Loans diminish profitability until they are paid off
• The first year will be financially tight while we gain customers and pay off loans
• Competition in the area could increase
• Management of employees requires time, money, and efforts
• Lack of capital to keep going if the business model doesn’t work
• Economic downturn; when the economy is bad it affects the flow of cash which in turn impacts businesses negatively.

b. How Do Venture Capital Firms Make Money?

Venture capital firms make money by getting returns on investments (ROI) on small businesses and startups. They also make money via management fees and carries (carried interest).

c. Payment Options

• Payment via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

d. Sales & Advertising Strategies

• Introduce your venture capital firm by sending introductory letters to potential investors in and around your city
• Advertise your venture capital firm on national dailies, local TV, and radio stations
• Promote your venture capital firm online via your official website and all available social media platforms
• Hire the services of experts to make your brand the first choice in your city
• Adopt a direct mailing coupon marketing approach to attract investors
• Position your signage/flex banners at strategic places

Financial Projection

A. how much should you charge for your service.

The nature of venture capital doesn’t give room to charge a business because venture capital firms invest in a business with the expectations to get good returns on the investment.

b. How Much Profit Do Venture Capital Firms Make a Year?

It depends, but the available report shows that on average, a successful VC can earn somewhere between $10 million and $20 million a year. Some of the leading venture capital firms make far more than $20 million in profits in a given fiscal financial year.

c. What Factors Determine the Amount of Profit to Be Made?

• The ability to cut down on risks
• The number of thriving startups and small businesses invested in
• The management style of the venture capital firm
• The business and investment approach of the venture capital firm
• The advertising and marketing strategies adopted by the firm.

d. What is the Profit Margin of a Venture Capital Firm?

The National Bureau of Economic Research states that a 25 percent return on venture capital investment is the average. Most venture capitalists will expect to at least receive this 25 percent return on investment.

e. What is the Sales Forecast?

Below is the sales forecast of a venture capital firm;

First Fiscal Year: $4 million

Second Fiscal Year:  $8 million

Third Fiscal Year: $18 million

Set Up your Office

A. how do you choose a perfect location for venture capital firm.

• The demography of the location especially as it relates to startups and small businesses
• The purchasing power of businesses in the location
• Accessibility of the location
• The number of venture capital firms in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Venture Capital Firm?

• Los Angeles, California
• New York City, New York
• Miami Beach, Florida
• Port Allen, LA
• Las Vegas, Nevada
• Atlanta, Georgia
• West Sacramento, CA
• West Chester, Ohio
• Austin, Texas
• Westbrook, ME
• Washinton DC

c. What Equipment is Needed to Operate a Venture Capital Firm?

You should be prepared to purchase relevant software apps. You will also need computers and laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard venture capital firm, you should make plans to hire a competent chief executive officer (you can occupy this position), chief financial officer (CFO)/chief accounting officer (CAO), venture capitalists’ consultants, admin and hr manager, risk manager, marketing and sales executive and customer service executives.

Launch the Business Proper

You may want to open your venture capital firm by first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the venture capital firm, you will be able to officially inform people that your venture capital firm is open for business.

a. What Makes a Venture Capital Firm Successful?

• Choose a good location to launch the business
• Hire only competent, hardworking, and trustworthy staff
• Be deliberate with your investment approach
• Leverage on all available online and offline platforms to promote your venture capital firm

b. What Happens During a Typical Day at a Venture Capital Firm?

• The business is open for the day’s work
• Applications are gathered from startups and small businesses that are seeking funding. This stream of investment opportunities is called deal flow (The higher the deal flow, the more likely it is that the venture capital firm can fund promising ventures.) These applications are reviewed and some of the companies are invited to submit a pitch.
• Marketing/website upkeep is carried out
• Other administrative duties are carried out
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Venture Capital Firm?

• Excellent investment skills
• Excellent risks management skills
• Customer services skills
• Business management skills
• Bargaining skill
• Work experience in the investment banking industry
• Work experience in a venture capital firm
• Experience in managing people
• Experience in business administration
• Experience in managing investors and their funds.

More on Financial Services

Top 11 Venture Capital Pitch Decks

Healy Jones blends his venture capital experience with operational knowledge to support startup financial strategies. With a background in investing in over 50 startups and holding executive roles in VC-backed companies, Healy has been featured in major publications like the New York Times, Wall Street Journal, and TechCrunch. His efforts at Kruze have been crucial in helping startups collectively secure over $1 billion in VC funding, showcasing his ability to effectively navigate financial challenges and support startup growth.

A big part of my job at Kruze is to help our clients prepare to raise venture capital. So I’ve seen a lot of venture capital pitch decks recently. As a former VC who also has been an exec at a number of startups that have raised quite a few million in venture financing, I have some strong views on what information VCs want to see. And because Kruze clients raise over two billion dollars in venture funding annually , I get to see a lot of what works - and what doesn’t. 

Since I’m regularly being asked for a template for a venture pitch deck, I thought that I’d compile the best templates available on the internet that I know about. Again, I’m strongly biased, as I’ve seen many companies successfully raise and some not. These are investor pitch deck examples that I think are working.

In addition to the example presentations below, I also lay out the standard slides that I’ve seen companies use to successfully raise venture funding. You can scroll down to also see a TechCrunch interview with a Kruze Client, DeepScribe, where the founder and their investor walk you through the deck they used to raise a $30M round. Finally, I’ve added in a dozen+ questions that VCs often ask founders during the pitch (I’ll probably create an entire article around VC questions and answers).

We’ve released our free startup pitch deck course ! It includes 2 free Google Presentation templates that are free to use, and one downloadable financial model template - plus over 8.5 hours describing what VCs look for on every slide in the deck.

Again, the pitch deck course has two free templates  that are free to use. No email or registration or anything - just click the links, open the Google Slides and duplicate them into your own Google Drive. One of the free templates is a B2B example, the other is a B2C example. Haje Kamps, the well known TechCrunch writer who produces the pitch deck teardown series, helped me create those free templates - so get them!

Top 10 11 venture capital pitch deck templates on the internet right now

• Guy Kawasaki’s pitch template -  https://guykawasaki.com/the-only-10-slides-you-need-in-your-pitch/  This is the OG demo pitch deck. Short and sweet. Starting to get a bit long in the tooth, but still the first one to check out because it will highlight how simple and short can be better (don’t make a 30 slide deck!!)
• Ycombinator’s slide template - https://blog.ycombinator.com/intro-to-the-yc-seed-deck/  The actual deck that YC links to (it’s a Google Slide file) has such poor design, I wouldn’t recommend using it. HOWEVER, the order of slides and the topics are 100% on, so it’s worth carefully reading the commentary in the actual post. I like the final slide, as it clearly outlines how much funding is needed and the use of the funds. A solid slide to end the conversation on. 
• First Round Capital’s deck - https://www.beautiful.ai/blog/uber-vc-pitch-deck-presentation-template  One of the top, East Coast VCs supposedly had a hand in creating this one, and the slide order/content is one of the best examples of what to put into your deck. I don’t know how you actually download this - it’s in some kind of a proprietary format, but if you are looking for a view on how to order and design a pitch deck, this is one you must check out. 
• Series A pitch deck used by Front to raise their A  - https://medium.com/@collinmathilde/front-series-a-deck-f2e2775a419b   This founder very kindly shared their slides and fund raising experience. Great example of a competition slide in an industry that has a lot of legit competitors. 
• Airbnb’s seed deck - https://www.alexanderjarvis.com/airbnb-seed-pitch-deck/  This is a classic (although the visual design did not age well). If you are looking for a consumer deck or one that talks about how to launch into a new(ish) industry, this is worth looking at.

We’ve also put links to six other examples below, like the Uber deck and the Mattermark slides. Scroll down to see more real-life examples of some of the best decks on the internet, and dig into our commentary on slide order and content strategy. 

Slides in an example Investor pitch deck

The professionals (like YC and Guy Kawasaki) are suggesting 10 slides in a standard pitch deck. I think the real point is that you should be able to deliver your pitch in 15 minutes or less - and if pressed, do a 5-minute pitch. That’s really short.

Why so short? Aren’t most VC meetings scheduled for 30 minutes? Well sure, but… 

Assume that your VC is late to the meeting by 5 minutes (they will always say something like “something came up with a portfolio company’s acquisition, but the truth is probably that the barista messed up and gave them an almond milk latte instead of a oat milk one and they had to wait for the right beverage - kind of a joke.) The VC will probably then give you a few minute spiel around what makes their fund different. Then assume that you need to answer at least 5 minutes of questions if your pitch is not going well - and 10 minutes of questions or more if the investor is engaged. And you’ll need a 5-minute pitch, that isn’t rushed, if some important partner is running way late or misses the first 20 minutes of your 30-minute meeting. And if you do get cut short, your goal is to get them to like you enough to agree to the next meeting, not to close the deal - or to even make it through the entire presentation in that setting. Focus on the key areas and key topics, and get them excited about your company purpose, mission and market. 

The standard table of contents in a good pitch deck is:

Based on the $1 billion our clients raised last year in VC funding, we think you will want:

1. Cover/title slide - including the company name and the founder’s contact info

2. The industry’s or customers’ problem - the pain that your startup is solving

3. Your startup’s solution or value proposition - how your startup fixes the issue / the benefits you provide

The templates start to diverge, so a few different next slides are:

• Traction - metrics that show adoption or market validation or
• Product magic/product demo - showing off the offering
• Market size
• Business model / how you make money

6. Go to market/growth - explain how you are going to grow

7. Competition and or competitive analysis/advantages - all startups have some sort of competition, or there is at least a way that customers are currently dealing with the pain your startup is solving

9. Financial projections - include revenue growth, high-level spend, burn, and other KPIs like customer count (you can go deeper in an appendix or in a financial model). And if you are looking for a free downloadable model template, visit our financial modeling page .  

10. Summary:

• How much you are raising
• Traction if you haven’t already done so
• Use of proceeds (what you do with the money)
• Current investors participation level (if any - strong investors who have already invested in previous rounds and who are participating in this one are a very good signal)

I am slightly older school - I usually like an “executive summary” after the cover page that goes over the company and round. I think this is probably a page that went out of style in 2015 or so, but I still like it because it quickly helps the VC see what your key metrics/sales points are, and how much you are raising. I usually recommend only four or five bullets on this slide:

• Disrupting the $x billion industry
• 1,500 customers using product [or] Marquee customers include McDonalds and Marriott
• ARR of X, growing 20% month over month
• Team has deep domain experience from XYZ
• Raising $8 to $10 million Series A

Given that YC and Guy Kawasaki seem to no longer (or maybe never) had an exec summary at the front of their venture capital pitch deck templates, you are probably OK ignoring my advice and just getting straight from the cover page to the problem statement. 

Tips for your slides

Here are some of the slides from the best decks mentioned above and some tips that founders we work with have found helpful:

• Problem Slide - Invite the investor into discussing / discovering the problem with you. Some problems are obvious - but that doesn’t mean that the VC has thought about them deeply before. Help the investor understand the issues from the eyes of the buyer/consumer. The best venture capital pitch decks have problem slides that are strong enough to make the investor really, really want to meet with you. 
• Go to Market / Growth Slide - For companies that are already generating revenue and growing, show that you know who your customers are and where you can find them. For pre-revenue startups, use this slide to prove that the founders have 1) thought about how to sell the product and 2) have a plan on what you will try to prove vis a vis your sales and marketing with the capital you are raising. 

Seed Pitch Deck Outline

Our COO, Scott Orn (also a former VC) has been assisting a number of seed and pre-seed companies during their fundraises, and has produced an outline/template for a seed pitch deck.

Pre-seed is sort of a new asset class. It’s essentially the first money in. That’s what seed used to be for everyone. So this is applicable to pre-seed and seed - basically, what to present when your company is more of an idea.

• Company’s slogan / 1 sentence elevator pitch - the first page or first slide should really just be the company’s name and slogan, or the one sentence, what you are doing. And just get the audience focused on that. Make sure to make an impression, deliver it with passion. You are in sell mode here. You’re pitching investors. 
• Problem - what are your customers struggling with? A lot of investors like the problem-solution type of framework, so the next slide would be the problem. So talk about how your potential customers are suffering, what’s going on right now in the market, why it’s not working, and then the next page in the deck will be your solution.
• Solution - how are you going to make everyone’s life better? You can explain how you’re going to be better, how you’ll save your clients or customers a ton of time, a ton of money, etc. Better, faster, cheaper is a Silicon Valley slogan that people typically use when explaining their startup’s solution.
• Nothing is more powerful than a demo. That also shows that the company has actually built something and you can get a taste for it. 
• Often you see a screenshot of the demo and often can click for video.
• Some people like more visual depictions of what you are doing. Regardless, in this section, something visual is pretty helpful. You want to get the conversation going, you want them to react to something, you want them to feel vested in what you’re doing. Get them to buy into the solution.
• This is kind of a “check the box” because it’s always hard to size the market. 
• And many of the best companies look like they have a tiny market but turn it into something huge. 
• But it’s a good exercise and tells investors where you are going. And, remember, venture capital is really just wanting to invest in big opportunities. VCs are okay with some losses, but when something works, they need it to be big. And so that’s why they really care about market size. This section helps prove to the seed investor that you are pointed at a big possible market, and that you are aiming to make a big company vs. a nice, small, lifestyle business. 
• You would be surprised at how many small businesses, that never really anticipate getting bigger than a couple of million in revenue, try to raise seed financing. So the seed investors need to be able to weed out the entrepreneurs who are not focusing on big opportunities, and you do that in this part of your seed pitch deck.
• And if you’re willing to spend a bunch of your time, five, 10 years of your career on something, there better be some size to it!
• You want to identify competitors. If you pretend you don’t have competitors or bad mouth them, you’ll lose credibility. investors typically like you to acknowledge your competition. And oftentimes there’s a little bit of education, because you know this market really well, but the seed investor doesn’t, so here is where you teach them about the competition.
• Seed investors know that competitors aren’t the end of the world. In fact, the best venture capitalists actually LIKE successful competitors, because it helps validate that there is a market for the solution. 
• This is a super important slide. Are you using a sales team? Partnerships? Online marketing? Events?
• Creativity, different approaches and things that investors have seen work are great.
• How much money do you need?
• How long will that get you?
• When do you think you’ll start to generate revenue.
• A visual is really good as part of this slide.
• It’s important to understand the seed investors mindset on this slide. They are doing the math, and they’re thinking, what does this company need to raise money from a series A venture capitalist? Because really, at every step of the venture capital game, people are putting money into your company and then hoping other people will step up down the road to fund the company. The seed investors that you are pitching only have so much capital. They are going to rely on your company doing well enough, and looking strong enough, to be able to get a VC to invest in your next round. And so, they’re doing that math and trying to figure out what is going to be that milestone that really brings other venture investors in the company? 
• Some seed investors don’t want you to talk about a sale eventually. They are essentially saying “I don’t want to even hear that you’re thinking about selling the company in three years or four years, or how could you possibly know who’s gonna buy it?” Which is very fair. So you needed to kind of tread lightly on this. I think the way I typically like to do this is just point out the players in the market and make the point that if you get traction and you’re successful, these people or these companies are gonna have a real strong vested interest in acquiring you. And so that’s kind of enough. 
• It’s enough to say that if we hit traction, there will be a lot of interested companies like X, Y Z.
• You don’t need to say like “I’m going to get bought for X number of dollars in year three” or something like that. Just talking about who could buy you or who would be interested is a delicate way of doing this. 
• It’s always great when a founder says, “I’m taking this through IPO. I’m committed.”
• Note from Healy: While Scott may really like this slide, I don’t love it as much, because, as Scott mentions, it makes me afraid that the CEO is not in it for the long term. I usually prefer to discuss this on the competition slide, “here are other, very big companies, that don’t play in this solution but who have the same customer base as we want… they may get into our market. Who knows, they may acquire their way in once they realise the solution is being adopted.” I like that method better, as it doesn’t imply to the seed investors or the VCs that you are putting the cart before the horse, instead it says that you know who the heavy hitters are in the general market, and then the investor can do the mental math to think that they may want to buy their way in eventually.
• Team - some people like to put this way up in the front, right after the slogan and what they’re doing, because they have a team that has accomplished a lot and the team is backable just because they’re just so successful and so technically strong and know what they’re doing. But you can have it here at the end of the presentation, either way is fine. It’s good to get some bios up there, get some pictures so that people can identify. Also the nice thing about bios and your founding team in the slide is that oftentimes you can play the name game with venture capitalists or seed investors - they’re professional networkers, they know a lot of people. And so oftentimes, you can get to a point where they know someone that’s on your team or that you know, and that’s a really great background diligence channel. If they want to invest in you, they may actually call their friend who knows someone on the founding team or knows you and just check and see what kind of person you are or your team is just for diligence sake. It also can be very impressive if it’s a super strong technical team or a marketing team that’s gone to market in a really unique way. But, wherever you put it in the pitch deck, definitely have a team slide.
• Any examples of progress - this is huge. If you can say you already have clients, revenue, etc, it is much more convincing. All these signs that what you are doing is working, and that it’s legit and it’s something the seed investors want to be a part of, it’s a social proof type of thing if you know that from influence. And so showing your traction is probably the best thing you can do to sell the company. So don’t hesitate to do that. If you have a commitment from a lead investor, that’s great, always put that in this slide in your investor pitch deck because it’s a lot easier to follow on than be the lead and set the evaluation, write the check, that’s a lot of responsibility and sometimes people don’t want to do that. But that’s what you can end up with.

And then there’s a tiny little tip which is, oftentimes you get to the end of the presentation and that slide just sits up there for the remainder of the pitch discussion. If it’s going to sit there, just make it like something showing how awesome you are or helping you close the sale, maybe it’s pictures, maybe it’s graphs or your traction. Instead of having that boring, “questions” slide, do something that spices it up. And every time they kind of subconsciously look at the slide deck on the wall, or the presentation, even though you’re just talking after the presentation has been done, it can kind of help convince them in a small way. So just a little tip to help your investor pitch deck be a bit stronger at the end.

At the seed stage, you’re still living the dream and you’re convincing investors that they should come along. So it’s a little less finance, a little less metrics and more vision. But really this framework should work for any type of venture capital presentation.

How to write a pitch deck to raise funding

Ok, so you’ve now seen the VC and seed deck outlines above - but how so you actually start writing a presentation that will help you get funding? Here is how I have successfully written pitch decks when I was raising VC money:

• Understand WHY you’ll be able to raise funding - this could be your traction, the market, the team, the product strength. Find the one thing that will blow investors out of the water, and build your story around it.
• Now that you know what your biggest strength is, put together the outline of the deck. 
• Decide what the one major takeaway is for each slide - this might be the slide title, or it might be a point driven by an image or chart. But you only have a handful of slides, so each one has to drive the vision forward; make each one count. 
• Start from the strength slide; don’t get it perfect yet, just make sure it highlights the “wow.”
• Next, fill in the rest of the slides, remembering that you are selling your vision. Use data, market insights, customer quotes to support the conclusion that your company is going to be successful.
• Now, practice running through the deck. It sounds cheesy, but I recommend doing it out loud! Make improvements to the slides and flow based on how it sounds delivering it to yourself. 
• You are ready to practice on some “friendlies” - either current investors, partners, mentors. Get their opinions, and then iterate the pitch deck until you feel confident that you’ve got the story down. 

Tips for your fund raising presentation if time is running short

Ok, so as I outlined, it’s highly likely that your 30 minute conversation gets cut into a much shorter time frame. There are good ways to handle this and bad. The worst way that I’ve seen is when a CEO talks REALLY REALLY fast and blows through the preso. It’s hard for anyone to soak in the information, it can be hard to understand, and it usually doesn’t work. A better way is to have the 5 minute presentation ready to go, and then to just walk through that briskly. No demo, and try to answer the VC’s questions as quickly as possible.

Common mistakes founders make crafting their investor pitches

In the Kruze pitch deck course, I talked with renowned pitch deck consultant and author, Haje Kamps, about some of the most common mistakes we’ve seen founders make over and over when they present to potential investors. Here are some of those problems - and you can watch the entire video. 

• Making the Team Slide Weak : We’ve noticed that many founders often inundate their team slide with unnecessary information, such as a full organizational chart, instead of focusing on key members and demonstrating their relevant skills for the specific startup. Don’t overload it; you don’t get points for lots of logos. Instead, figure out the most relevant or impressive items and 
• Misunderstanding Market Size : The total addressable market and serviceable markets need to be sizeable enough to show potential for a venture-scale company. It’s fine to start in a niche, but you need to be able to create a company that’s worth at least a billion dollars, if not more. As you need to be attacking a big space.
• Unrealistic Projections : We’ve seen founders showcasing either slow, steady growth or overly aggressive, unrealistic growth - both extremes are unappealing to investors. Look at some of the templates we share on this slide - those projections are good! You aren’t going to go from founding to $100 million in revenue in a year. And if you are growing from $4 million to $4.5 million in revenue, congrats, you’ve got a great small business, but it’s not venture-scale. 
• Failing to Accurately Represent Traction : A traction slide should provide substantial evidence of growth, often in the form of customers generating revenue or being in the sales funnel. Unfortunately, many founders include markers such as press coverage or vague “interest” that doesn’t translate into tangible growth.
• Lack of a Coherent Story : Haje really talks to this well. It’s essential for founders to weave a coherent story that sells not just the product, but the vision of the company and its future value. Many founders fail to communicate this effectively, resulting in a disconnected or confusing narrative. You want the partner who you just presented to to be able to walk off and talk about one of your main customer successes, and how that ties into your company’s vision and traction. 
• Absence of a Competition Slide : Many founders overlook the importance of including a competition slide in their presentation. This is a major mistake, as not acknowledging competition can lead investors to think the founders are unaware of their market landscape. It’s one of my favorite slides. If you’ve got big competitors, great, you’ve just helped the VC understand who you might sell the company to in a few years! 

That’s just a few of the top venture capital pitch deck fails we go over in the video - check it out. Being aware of these common mistakes and addressing them in your pitch deck can significantly enhance your chances of capturing a venture capitalist’s interest.

Common VC Pitch Deck Fails Video

Tips for the financial section of your pitch deck

As financial advisors to funded startups, we tend to overly index on the financial section of our client’s fundraising pitch decks. Note that this is our interest area (and how we get paid), so it may or may not be all that interesting or important for your startup’s presentation. 

What Financial Data Goes Into a Great VC Pitch Deck?

For very early stage companies you either want to have an operating plan or more detailed financial projections in the pitch. These should be backed up with a model that is sharable with investors. The model doesn’t have to be fancy - simple is often better in fact. The purpose of the model is to illustrate your strategy’s financial implications, but even more importantly, the model is like the pitch deck - it’s there to sell your vision and get the investors excited about investing.

Financial Data in the Deck by Stage

The financial detail that you go into in your VC deck will vary based on the stage of your business. Let’s breakdown what you might need for a seed to Series C company.

• Seed stage - Your pitch deck only needs a brief description of what you are intending to do with the money. As Scott mentioned above, a visual can go a long way here. Since revenue is now often expected for an A, you should articulate some sort of an expectation in revenue before the money runs out (i.e. investors want to know if you’ll have the exit velocity you need to raise the next round).
• Series A - A 5-year view is ideal, as this gives you the chance to show / “prove” that you are going to create a venture scale business. An extrapolated income statement with include revenue growth, high-level spend, burn, and other KPIs like customer count. You ought to have an appendix with more detail - or just a piece of excel that you can share (probably better at this stage).
• Series B - You are still going to need the 5-year projections. But, at a B, you’ll have more financially minded investors. This means that you ought to have a real appendix section that gets into the drives and assumptions to your continued growth. SaaS companies are going to need to be able to explain how they calculate their LTV to CAC - so your pitch deck will have to address both parts of that calculation. You can still put the detail in the appendix, but have it organized so that you can go through all the financial part in an organized presentation if needed. 
• Series C - Series C companies should have real financials that have been prepared by a professional accountant, either in house or as a consultant. While you’ll still want a single slide in the meat of the pitch deck that has your five year vision, your historical results will also matter - so that slide will have to do a lot. This may mean that you have to push your KPIs like customer count into a seperate slide(s). And the financial appendix should have historical statement - probably all three - and projections. 

Finally, we’ve complied some other pitch deck examples that you may find helpful. Again, we think the best VC pitch decks templates/examples are the ones we highlighted at the top of this page, but here are some of the others that are floating around on the internet that you may like.

Five SIX More of the Best Pitch Deck Examples

• Uber ( pitch deck here ) - this is when they were still called “UberCab.” And it’s very early in the life of the company, so is product and market focused. You won’t find data about the company’s performance, since it’s so early. This deck may be helpful to pre-launched startups.
• Intercom ( seed pitch deck here ) - another example of a seed stage pitch deck, this one for when Intercom was raising $600k. This is a short deck - only 8 slides - and it focuses on the team, problem, solution and market. Note that the “progress” slide consists of a tweet from a user - pretty slight - you may not be able to get away with this lightweight of a presentation unless you have the clout of these founders. BUT if you are looking to talk about the market size and opportunity, this is a decent example.
• Mattermark (deck here ) - data company Mattermark has real traction, and there are several examples of solid metrics/charting visuals in this deck. With $1.5M in ARR at the time of this pitch, they are probably around where many Series A’s are getting done in Silicon Valley. (I’ve even seen Series B’s happening at this level). This is a great pitch deck example if you are looking to impress the VCs’ with your traction. Check out slides 11, 12 and 13 for information on how to present historical revenue growth, projections and customer industry diversification. 
• Mixpanel (deck on slideshare here ) - Mixpanel shared their deck as an example that other startup can use. This is the set of slides that Mixpanel used to raise a $65M round. The competition slide is particularly good for driving a disucssion with the VCs. The traction slide is also strong - one of the best in combining the visual “up and to the right” chart with some details on the company’s milestones. The slide that is close to the “what we do with your money / operating slide” is a good overview of what the company needs to do to grow, although it’s not as focused on financials as I’d like. 
• Mint (seed pitch deck here ) - A great seed stage fundraising deck, with the whole enchilada: a good team slide, a great market size one, solid competition, user acquisition, and a financial slide that makes my inner accountant happy. Notice the flow on this slide, with the team slide right near the front. This could be the best template/example for companies with an experienced team.  
• Orange (seed pitch deck template here ) -  A great example of a hardware as a service deck. It gets into the problem, the market size, the solution and then makes a solid case for why this team is the one to solve it. One of the best parts of this one is the intro slide - it kicks off right at the front with a strong explanation of what the problem is, and the VC looking at it can immediately infer what the startup’s solution is. 

So that makes 11 of the best pitch deck templates and examples that we’ve seen on the internet. 

Pitch Deck Example from a Kruze Client

One of our clients, DeepScribe , was interviewed on TechCrunch Live about their Series A fundraising process. Akilesh Bapu, the CEO and co-Founder of DeepScribe, was interviewed along with Nina Achadjian, a VC and Partner at Index Ventures. Nina invested $30 million into the company, and was impressed with the founders and the story they explained during their pitch.

In addition to giving Kruze Consulting a shout-out for our help on his accounting diligence (thanks Akilesh!) he also walks through part of his VC pitch deck. It’s one of the better examples that we’ve seen of a live pitch deck presentation. You can watch on Youtube or see below.

What Questions do VCs ask During a Pitch?

Questions during a pitch are a GREAT sign - that means that the venture capitalist is paying attention. I strongly recommend founders use their venture capital pitch deck as a crutch, jumping to the right slide to answer the specific question , then going back to the original presentation order to make sure all important topics are hit. Again, I’ve seen partners reject a company because “the founder didn’t talk about go to market.” Yeah, they didn’t have time to talk about it because of all of your questions! 

Here are some of the trickier questions investors might ask during a presentation. Think about which slide you might be able to use to answer these questions. Resist the temptation to argue with a VC if they ask difficult questions; saying you don’t know but then laying out your plan to figure it out is a great response to many questions. 

Questions VCs Ask

• What’s the backstory?
• Tell me about yourself 
• How did you meet your cofounder?
• Tell me about the team? How did you find your first hires?
• What is the specific problem you are solving?
• What’s the key insight about your user that led you to build this business?
• What’s the ideal outcome for your customer?
• How are customers currently solving this problem, before your product/solution existed?
• What differentiates your solution from alternatives?
• What have your biggest learnings been so far?
• How are you planning to acquire customers?
• What would your customers say about your solution, and how would they react if it went away (i.e. you went out of business)?
• Why now? What has changed in technology or the market that makes this possible only now?
• What do you think has to go right for this to be a massive outcome?
• How much do you want to raise, and what milestones do you hit with that capital?

VC Pitch Deck FAQ

Because Google says people are asking questions.

What is a VC pitch deck?

A VC pitch deck is a presentation (typically in Powerpoint, Google Sheets or PDF) used to explain a startup idea to potential venture capital investors. A pitch deck contains information on the business, the market and the company’s traction/financials. 

What is a pitch deck used for?

These presentations are used to 1) convince venture capitalists to take a 1st meeting with the founder(s); 2) begin investment due diligence and 3) convince the venture firm’s partnership to want to invest in a startup. 

Will a deck help you get a meeting with a VC?

A great venture capital pitch deck may help you get a meeting with a venture capitalist. VC firm NFX reminds startup founders that investors are looking for the following 12 data points before taking a meeting with a startup:

• Company description
• Market opportunity
• Business model (how you make $ + your financial projections)
• Geography (less important post COVID)
• Team size (FTEs)
• Timing of the fundraise
• Company traction
• Fundraising history
• Fit for the specific VC
• Referrer - who introduced you to the fund

Does your venture capital presentation have to be PowerPoint?

VCs typically expect a slide deck; these days usually a PowerPoint, Google Slides or a PDF of one of those formats. I’ve been with companies that have used designers to create an incredibly slick venture capital presentation, which they presented as a PDF - no idea which tool was used to actually design the presentation, but it was likely an Adobe product. The most important thing is making the presentation be in 1) slides and 2) something they can share and access from their computer.

Is it OK to share your venture capital presentation by DocSend or a presentation sharing platform instead of as an email attachment?

These days more and more VCs are Ok getting the presentation as a DocSend or other presentation sharing platform that asks for their email address or asks to verify that they are someone you to share the document with. However, you’ll occasionally find the grump VC who wants their presentation the old school way. Often these investors write up their dislike of sharing tools on their blog or Twitter. 

How do you modify your pitch deck for the final, all-hands VC partner pitch?

The final step to getting a term sheet, at many venture capital firms, is to pitch the partnership one final time. This is after you’ve already gotten one of the partners to support your investment internally as the champion. In the final meeting, you’ll have the full range of understanding of your company - from the partner who is supporting you and who knows a ton to partners who know close to nothing. 

It’s not safe to assume knowledge on your industry or problem. Invite all the partners into the fold by explaining and building excitement around what you are doing. Don’t gloss over the market size or competition! 

Hope this helps you find a good pitch deck template for your fundraise!

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Free Business Plan Template

Welcome to our Free Business Plan Template download page! If you're an entrepreneur or small business owner looking to create a comprehensive and effective business plan, you've come to the right place.

Our business plan template is designed to guide you through the process of creating a professional, well-structured plan that will help you define your goals, identify your target market, analyze your competition, and set out a clear strategy for achieving success.

The template is available for download in both docx and pdf formats, making it easy to customize and edit to suit your specific needs. Whether you're just starting out or looking to refine your existing plan, our template is a valuable resource that will help you create a roadmap for success.

So download the template today, and start creating a business plan that will help you achieve your goals and build a thriving business.

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How to Write a Business Plan For Your Startup

While a business plan might feel like a dying practice for startups there are countless benefits of building out and thinking through a plan. A startup business plan can be the backbone of pitch decks , investment memos , and strategy as you set out to build your startup.

Related Reading: How to Secure Financing With a Bulletproof Startup Fundraising Strategy

In our guide below, we lay out 8 concepts that will help you build a business plan as you begin your startup journey. You can skip around to specific sections below:

Eight Key Concepts To Include In Your Business Plan

As we mentioned above, the 8 concepts below are a great starting point to think through when forming your business. Inevitably, you’ll face questions and issues around all of the issues so having a well-thought-out plan and approach to each will pay dividends as you build your business.

Related Resource: How to Create a Startup Funding Proposal: 8 Samples and Templates to Guide You

1. Build an Executive Summary

As put by the team at Inc.com , “The summary should include the major details of your report, but it’s important not to bore the reader with minutiae. Save the analysis, charts, numbers, and glowing reviews for the report itself. This is the time to grab your reader’s attention and let the person know what it is you do and why he or she should read the rest of your business plan or proposal.”

An executive summary is an opportunity for you to layout the contents of your business plan and set the stage for what is to come. Avoid going too deep into detail and rather lay out the backbone of your plan. You want to balance getting the reader’s attention with supplying the information they need to get a grasp of your report. A few items that we suggest you include:

• What is this product service/service?
• Who will benefit from this product/service?
• Who is competing with this product/service?
• How will you execute on selling your product/service?

As you continue to build out other sections of your business plan, the executive summary might change as you tweak other components.

Related Resource: A Complete Guide on Founders Agreements

2. Identify Your Business Objectives

First things first, you will want to layout the objectives of your business. This should be a deeper dive into what exactly your company does and how it is set up. This will be your opportunity to highlight your market and communicate why your product/service is set up for success. This is also a chance to hit on the mechanics of your business (structure, model, etc.). A few items that we suggest including when laying out your business objectives:

• Gives investors a brief overview of what your company does
• Communicate the value of your product/service
• Highlights the market opportunity

You will have an opportunity to go into more depth in each of the details above later in the plan so make sure you are giving just enough detail to build interest and give investors a solid understanding of your objectives.

3. Highlight Your Companies Products and Services

Next, you can start digging into the fine details of your products and services. You will want to build excitement here and let investors know exactly what your product offers and why it is built to solve a big problem and win a market.

This is a great opportunity to present any qualitative or quantitative data you have about the market and your ideal buyer. Layout the problem and make your investors feel the pain that you are trying to solve. For example:

Let’s say you have an application that helps people find and book a camping site. You might want to lay out the problem you are solving below:

Next, layout how and why your solution is solving the problem like the example below:

A few other things you will want to make sure you include when highlighting your product or service:

• Face-to-face research on problems in the market
• How does this product solve the market’s problem?
• Data that suggests people are feeling the same pain point
• Stories from existing or potential customers that highlight the pain points

The goal here is for you to have your investors understand the problem and start building empathy.

Related Resource: How to Write a Problem Statement [Startup Edition]

4. Define Market Opportunities

After you have laid out the problem and solution, you can start displaying the hard data behind the market. Venture capital follows a power law curve so chances are investors will want startups to demonstrate a large market and the potential to capture a large percentage of the market.

One aspect is modeling your total addressable market . You’ll want to demonstrate a large market that piques the interest of investors. Make sure to use real numbers and a bottoms-up approach here.

In addition to demonstrating your addressable market, we suggest including a few of the ideas below:

• Do research on the target audience
• Who is the target demographic for your product/service?
• What is the target location for your product/service?
• What is the typical behavior for your target audience?

Related Resource: When & How to Calculate Market Share (With Formulas)

5. Complete Your Sales and Marketing Plan

Now that you have demonstrated your product and the greater market it is time to start digging into the specifics of you will attract and close new customers. At the end of the day, bringing in revenue is the goal of a business to having a strong go-to-market strategy is an important aspect of your startup’s business plan.

If you’ve correctly laid out your market and the demographics of your target market in the previous sections, investors should have a strong understanding of the space and will be able to have a conversation around your sales and marketing strategies.

You don’t need to go into overwhelming detail here but laying out what channels you will rely on and how you will execute and hire on those channels is necessary. For example, if organic search is a strategy you can lay out what you are doing to execute on that channel but do not need to mention the specific posts and content you are creating here.

To make sure you nail this section, be sure to include a few of the following:

• Sales channels
• Marketing objectives
• Early data points and success

If you do not have any hard data points yet, no worries. Use your research and market data to build compelling cases for different acquisition strategies.

Related Resource: 7 Startup Growth Strategies

6. Include a Competitive Analysis Report

Of course, investors will want to know about the competitors operating in your market. They will want to understand how you are differentiated and why you are poised to beat them in the space.

You’ll want to make sure you are clearly demonstrating who is operating in what aspects of the space. Compare your product or offering to them. Remember to be honest here as investors always have the ability to double-check your research and will do their own analysis of your competitors.

A common way to show this information is by using a market map. Check out an example of what a market map looks like below:

Related Resource: Tips for Creating an Investor Pitch Deck

7. Structure Your Operations and Management Teams

In the early days of a business, most investors will be taking a chance on the founding team and management team. They will want to look at your team’s past experiences and skillset to understand why they are the ones that should execute on a problem.

Highlight what managers and leaders are responsible for what aspects of the business and use their past experiences and skillsets to show why they are fit for the role.

You can also use this as an opportunity to demonstrate hiring plans and how your teams will be structured as you continue to grow. Here are a few examples of what you might want to include:

• Define your team of experts and what tasks they are responsible for.
• Consider adding an organizational chart to clearly outline your companies structure

8. Financial Analysis

Finally, you should include financial analysis for your business. Depending on who you are sharing your business plan with might depend on the level of financial analysis you would want to share.

If you already have financials and data be sure to include the last 12 months of data. Make sure the data is incredibly easy to understand decipher. You don’t want someone to be looking at your financials and take things out of context to draw conclusions about your business that might be wrong.

Another aspect you’ll want to include is your financial forecasts and goals. While chances are that your forecasts will be wrong it is a good way to demonstrate to your investors that you are thinking about your business in the right way. Check out why Gale Wilkinson of Vitalize Ventures likes to see early-stage founders model their future below:

A few other items that might be worth including with your financials can be found below:

• Include revenue
• Major expenses
• Financial goals and milestones

Related Resource: 4 Types of Financial Statements Founders Need to Understand

Related Resource: A User-Friendly Guide on Convertible Debt

Share Your Business Plans With Visible

Once you have your business plan in place it is time to hit the ground running and collect feedback on your business plans and objectives. Use our Update and Deck sharing tools to share your plans with potential investors and stakeholders along the way. Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days .

• Investor pitch deck

What is an investor pitch deck?

• LP pitch deck template & examples

Download the template

The outline of a pitch deck for lps, the fund thesis, the track record, the fund details.

A pitch deck is a presentation that describes a business plan and solicits outside investment. Often, company founders and executives use a pitch deck to help raise funding for a startup from venture capitalists (VC) . Other times, a VC fund manager uses a pitch deck to raise new capital from limited partners (LP) for an investment fund. This second type of pitch deck is called an investor pitch deck, or LP pitch deck.

An LP pitch deck typically takes the form of a slide deck that tells prospective investors in a VC fund about the fund’s leaders, its investment thesis, and why the firm is uniquely positioned to execute on its strategy. 

LP pitch deck template & examples

Ready to make your own investor pitch deck for LPs? Prepare for your next meeting with investors using our free pitch deck template and example pitch decks . 

The VC pitch deck template was developed in partnership with Kauffman Fellows .

The purpose of an investor pitch deck is to convince other investors to commit their capital to your fund. There is no standard format or structure for an investor pitch deck. However, most pitch decks cover several of the same key topics about a fund and its strategy, which we’ll outline below. 

A pitch deck provides a basic introduction to your investment fund and key people, such as partners or other investment committee and team members who will be sourcing dealflow and making investment decisions. Your pitch deck should cover the background and experience of these key participants and decision-makers and highlight how they plan to leverage that experience through this particular fund. 

The combination of a fund’s leaders and their past experiences is often one of a fund’s differentiators—the factor or factors that will allow this fund to stand out from the marketplace. Your pitch deck should emphasize these differentiators and make the case to prospective LPs why the fund could be an attractive value proposition. 

Your fund’s investment thesis is a definition of how you plan to deploy the capital in your fund. LPs often use the fund thesis as a quick way to see whether a particular fund is a match with their own investment mandates and preferences.

Your fund thesis will also support your compliance with the “ venture capital fund ” definition under the Investment Advisers Act of 1940 if you plan to rely on the related regulatory exemption for private funds. 

Common elements of a fund thesis include:

Anticipated fund size : How much capital do you plan to raise from LPs? 

Investment stage : At what stage or stages of the startup lifecycle do you plan to invest? 

Industry focus : In what industry or industries will you invest?

Geographic focus : In what region or regions will you invest? 

Differentiators : What is unique about your fund that will allow you to execute your strategy?

A lot of thought and effort goes into determining a fund’s thesis. But in the end, you should be able to sum it up in one or two straightforward sentences. Here’s an example thesis from a hypothetical venture fund:

“Krakatoa Ventures is raising a $25 million seed fund to back U.S.-based startups focused on climate technology and earth sciences. The fund will capitalize on a highly specialized network of climate scientists the general partners developed during their two decades of academic study in volcanology and climatology.”

Almost everyone who starts an investment fund has some prior track record as an investor, whether that’s a long career as a principal or partner in an established VC fund, a handful of prior deals as an angel investor , or experience bringing together your strong network of investors and founders for access to a few deal-specific special purpose vehicles (SPV) . Include details about your investment team’s past work as investors, such as sample investments you’ve made or financial returns from past deals.

An investor’s track record is an important piece of evidence for LPs as they decide which venture funds to invest in. Past performance certainly does not guarantee future results, but it can be a helpful indicator. 

Your fund thesis is the basic statement of how your fund will operate. But investment funds can be complicated. Consider including some the following information to clearly define your fund:

Fees and carry: What management fees and other fees will you charge LPs? What percentage of the fund’s returns will you take as carried interest ? Historically, the standard fee structure in venture capital is “2 and 20,” meaning a 2% management fee and 20% carry.

Check size : What size investments do you plan to make in portfolio companies? 

Portfolio structure : How many investments will your fund plan to make? How will those investments complement each other to form a cohesive portfolio? 

Your LPs : What sorts of LPs will your fund target? How many LPs will your fund target? What size investments will you seek from LPs?

Follow-on strategy: How will your fund approach potential follow-on investments in portfolio companies? Will you maintain your pro rata ownership, spin up SPVs or allow direct co-investment from LPs?

Related Content

Venture Capital Business Plan Template

Looking for a venture capital investment for a growth-oriented business? Make use of this sample outline to create your business plan and improve your chances of attracting equity investors.

The goal of the executive summary is to stimulate and motivate the investor to learn more. Keep it simple, be brief. If your business is truly complex, you can dive into the details later on.

• Company Data

The goal of this section is to educate the investor about your company’s history and explain why your team is perfect to execute on the business opportunity. Give some history and provide the background on the company. Show off your track record. Detail prior accomplishments, including funding rounds, product launches, milestones reached and partnerships secured. Demonstrate your team’s unique competitive advantage or key partnerships.

The goal here is to prove that there is a real market for your product or service. Demonstrate the need for your product. Cite credible and independent sources when describing the size and growth of your market. Determine the relevant market size and focus on the products or services that you will directly compete against. Explain how you would overcome potential negative trends.

Convey the needs of your customers and show how your products or services satisfy those needs. Define your customers precisely. Detail their demographics. How many customers fit the definition and where are these customers located? Use data to demonstrate past actions (X% have purchased a similar product), future projections (X% said they would purchase the product), and/or implications (X% use a product which your product enhances). Explain what drives their decisions. Detail the decision-making process.

Define the competition and demonstrate your competitive advantage. List competitors. Include direct and indirect competitors. Carefully describe their strengths and weaknesses, as well as the key drivers of competitive differentiation in the marketplace. Demonstrate barriers to entry. In describing the competitive landscape, show how your business model creates competitive advantages, and defensible barriers to entry.

Describe how your company will penetrate the market, deliver products/services, and retain customers. Products - Detail all products and services, but focus primarily on the short-to-intermediate time horizon. Promotions - Explain which marketing/advertising strategies will be used and why. Price - Provide a clear rationale for your pricing strategy. Place - Explain how your products/services will be delivered to your customers. Explain how you will retain your customers. Define your partnerships.

Detail the short term processes and systems that provide your customers with your products and services. Business milestones - Lay out the significant long-term business milestones for the company, and prove that the team will execute on the long-term vision.

A set of financial projections is included with this section automatically. Detail your key assumptions here. Detail the uses of funds. Understandably, investors want to know what, specifically, you plan to do with their money. Provide a clear exit strategy. The most common exits are IPOs or acquisitions.

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How to Present a Business Plan to Venture Capitalists

Last Updated: March 23, 2023

This article was co-authored by Pete Canalichio . Pete Canalichio is a Brand Strategist, Licensing Expert, and Founder of BrandAlive. With nearly 30 years of experience at companies such as Coca-Cola and Newell Brands, he specializes in helping brands find the most authentic parts of their story to build a brand strategy. Pete holds an MBA from the University of North Carolina at Chapel Hill and a BS in Physics from the United States Naval Academy. In 2006, he won an MVP Award from Newell Brands for his contributions to their Global Licensing department. He’s also penned the award-winning book, Expand, Grow, Thrive. This article has been viewed 48,728 times.

A venture capitalist (VC) is a person or organization that invests in another’s business or business idea. If you have contacted a VC about investing in your business and have received an invitation for an interview, you will need to prepare your business plan to present during the interview. To present a business plan to a venture capitalist, follow the steps below.

• The company's purpose. Make it short and to the point. For example, a company who manufactures educational products for children may state its purpose as, "to provide children with high quality, inexpensive, educational materials".
• Your target audience. Your target audience is the group of people to whom you will market your product or service. For example, a manufacturer of children's educational products may serve children all across the United States or a tax preparation company may serve tax payers in a certain county or state.
• A description of your company’s product(s) and/or service(s). Describe what your company's product or service is, what it does or how it works, and why someone should want to buy or use it. For example, a tax preparation company may provide faster, more accurate, and less expensive income tax preparation services to tax payers in the area than any other company.
• An explanation of what the company wishes to accomplish. For example, an animal shelter may wish to "ensure that all homeless and abused animals find caring, loving homes" or a tax preparation company may wish to "make fast, accurate tax preparation available to all taxpayers".

• Your company contact information. This includes your company name, logo, tagline, if you have one, the businesses' physical address and your name and personal telephone number.
• An introduction to your product. Provide a brief description of the product or service your company offers. You might want to use photos or illustrations of the product in appropriate places, or include a video demonstration of the product.
• Your company’s financial information. A summary of your most recent profit and loss statement, your current budget, and a financial projection for the following year should be included in the financials. Consider using bar graphs and pie charts to illustrate the most important points.
• A marketing plan. The plan should be a summary of your marketing strategy from your business plan, and should include just the most important points. You may wish to illustrate your points with charts or graphs to make the plan easier to read and understand.
• A description of the competition. Identify and name your competition. Describe the competition’s product and marketing strengths and weaknesses. You may also want to briefly describe why your product is better than your competitor’s product and how you will convince potential customers of that.
• A summary of why the VC should invest in your company. Create a bulleted list of your company’s main attractions or write a paragraph selling your product and your company. However you format it, this is your last chance to 'pitch' your product to the VC.

• Experience. A team member’s experience is important to a VC. After all, new companies fail everyday due to a simple lack of experience. Your team’s previous experience and successful business ventures will help convince a VC that your business will succeed and is worth investing in.
• Education. A team member's educational background is important to a VC considering investing in your company. Well-educated members can give your company an advantage over those company's without educated team members. Describe each member’s education and any degrees he or she possess.
• Personal characteristics. Your team member's character and personality traits are an important factor in whether your business will be successful or not. Hard working, intelligent, creative, reliable, trustworthy team members are more apt to create and run a successful business than lazy, unreliable, and dishonest team members. Talk about your team members’ strengths and how they will contribute to the success of your business.

Expert Q&A

• Practice your presentation. Enlist the help of friends and family to act as an audience so that you may practice your speech and slide show presentation. Thanks Helpful 3 Not Helpful 0
• Allow plenty of time for a question and answer session after your presentation. Thanks Helpful 4 Not Helpful 1
• Keep it short. Twenty minutes is the maximum length for a good VC presentation, and many experts recommend that you keep it to no more than 10 minutes. Thanks Helpful 0 Not Helpful 0

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Sample Venture Capital Firm Business Plan

Venture capital business plan sample.

First, it is important to know what Venture Capital Business is all about.

A venture capital business is a business that provides funding for startup companies or other businesses that have high growth potential.

Venture capitalists also get a say in the running of any business they invest in, since they are taking a risk by investing in such.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

It is not easy to start a venture capital company, but if you are serious about being in the capital market and you have a good financial background , experience, and certifications to back you up, be rest assured that with determination, you can comfortably build this business.

Starting a venture capital company is not a ground for rookies, it is for people who have played the game of business and know their onions.

I am talking about those who have tried their hands on familiar terrain and succeeded or failed, either way, there is experience and wisdom good enough for this type of venture.

I want to emphasize that venture capital is not for the faint of heart because it is about exposing yourself to risk.

You are expected, as a venture capitalist, to fund entrepreneurs and their ideas with the money of investors and make huge returns on the investment.

Here is a sample business plan for starting a venture capital company.

STEP ONE: Be Sure of What You Want and Know your Limits

Starting a venture capital company is more complex than other businesses where you just need have to commit your money to make profits.

Here, you should have the ability to search for the right businesses to invest in and know how to fish out the ones you don’t want to invest in.

STEP TWO: Do Your Research

Conduct thorough research on the nature of this business , the environments you wish to hunt for entrepreneurs, their potential, the general financial market, and legal backing.

Pick an already existing venture capital company, a very successful one. Study this company very well to know how they manage risks and make their money.

STEP THREE: Acquire all the Qualifications Needed

I have stated before that this venture is not for newbies in the business world it is a basic requirement in this line of business to have had investment experiences and good financial education and record.

A university degree in any business-related course like business administration, economics, or accountancy will go a long way in helping you work as a venture capitalist.

As someone who has studied economy and business, you would be able to differentiate between a growing and struggling entrepreneur and foresee their future success.

If you have a Master’s degree in business, you have an added advantage as people will take you more seriously in the business world.

STEP FOUR: Work in a Venture Capital Company to have Experience

Working in a venture capital company will be easy if you have already acquired the necessary qualification as explained in step three.

When you work with an already successful company in this field, you will have the skills and experience which will serve as a strong foundation to the building of your own.

You will have insight on how to grow small businesses, how to build a good relationship with young entrepreneurs and work with them, and how to manage the many inevitable risks involved in the business.

STEP FIVE: Write your Business Plan

A properly written venture capital company business plan will not only give your company direction but will also help you to get a loan from the bank.

Your business plan is what top financiers will ask to see before making their decision to support or not support you, so it should be written with the knowledge that it speaks for you out there and must show clearly show your model, strategy for risk management , your knowledge of the market and your vision for the company.

STEP SIX: Build your Inventors’ Network and Gather Funds

You are all about generating money from various investors and injecting their funds into a startup and struggling business that has a promising future, to generate returns for these investors and of course, your company.

To create a network of investors, you need to have a good reputation for them to commit their hard-earned money to you.

For this reason, you are to let them see your successful records in past experiences and also show them your strategy for risk management and profit-making.

Persuade them more by giving juicy deals that they will find irresistible.

STEP SEVEN: Get your Company Registered and Obtain a License

Before you can start operating as a venture capital company, you must get your company legally registered and be issued a proper license which gives you authority and permission to practice.

This is important, not only because it is by the law but because you are handling other people’s resources and you must be licensed to do so.

STEP EIGHT: Hiring

Now that you are registered, you will need employees in your company and the quality of those you hire will go a long way in determining the success of your venture.

Employ people who have the skills that complement your own.

STEP NINE: Look for and Partner with Entrepreneurs

Go out there, a source for young entrepreneurs, startups, and struggling businesses that just need a little financial push to thrive. When you find them, put your skills to maximum use and achieve what you set out to do.

VENTURE CAPITAL BUSINESS PLAN EXAMPLE

Writing a detailed venture capital business plan is pretty stressful, that is a fact that cannot be denied by most entrepreneurs.

To help ease this little inconvenience, here is a sample.

• Business Overview
• Vision Statement
• Mission Statement
• Management Structure
• Products and Services
• Market Analysis
• Target Market
• Competitive Advantage
• Marketing Strategy
• Financial Plan:

Pricing Strategy

BUSINESS OVERVIEW

Kloe Venture Capital Business Inc. is a registered and licensed venture capitalist firm that provides venture capitalist services.

Kloe Venture Capital Business will be based in Texas, the USA with plans of extending to other states and countries in the nearest future.

At Kloe Venture Capital Business Inc., we plan to be client-oriented and be guided by our values and professional ethics. While catering to the needs of individual corporate clients, Kloe Venture Capital Business will endeavor to work as hard as possible to meet and surpass the expectations of our clients regularly.

Kloe Venture Capital is a business focused on ethics and this is our drive. With strong principles, we will strive to build a work environment that is conducive for both staff and clients.

With well-trained, certified, and equipped staff, Kloe Venture Capital plans to operate a venture capitalist business that becomes the leading venture capitalist firm in America.

We are confident we can get to the top because we have done all the needed research and feasibility studies needed which makes us optimistic about meeting these heights.

Kloe Venture Capital Business Inc. is founded by Jacob Ade and Fawaz Smith and the firm would be managed by the pair who aim to build to take this firm to the highest point achievable with their vast financial experience and expertise.

Jacob Ade and Fawaz Smith are both graduates of accounting and are certified, venture capitalists.

Fawaz Smith has 10 years of working experience with investment banks in and outside the USA and Jacob Ade has an MSc. in accounting from the University of Yorkshire.

VISION STATEMENT

The vision of Kloe Venture Capital Business Inc. is to build a capitalist firm that would be the number one brand when it comes to venture capital business in the US. Our vision is founded on our core values which include; strong ethics, excellence, service, and teamwork.

MISSION STATEMENT

Our mission is to provide the best venture capitalist services to individual and corporate clients within and outside the country.

MANAGEMENT STRUCTURE

To efficiently meet up to the vision and mission of Kloe Venture Capital, we will set up a qualified, honest, and hardworking team that will occupy the following positions in our firm.

• Chief Executive Officer • Venture Capitalists Consultants • Admin and HR Manager • Risk Manager • Marketing and Sales Executive • Chief Financial Officer. • Front Desk Officer

PRODUCT AND SERVICES

Within the scope of the financial investment services industry in America, Kloe venture Capitalist would be offering different services to clients.

At Kloe venture Capitalist, we have the intention of starting to work with promising startups and other business ventures.

Our business offerings are listed below;

• Investing in financial contracts on own account • Participating in clubs comprising of those who pool their money to make investments • Oil royalty dealing • Venture capital • Trade in financial products • Related investment consulting and advisory services

MARKET ANALYSIS

Market Trends

Over the years, startup businesses have failed to grow successfully as a result of inadequate funding. Some great business ideas die out for the same reason.

Even the American government had to step in at some point to provide funding for Small and Medium Enterprises (SME).

Every day, the need for the services of a venture capitalist firm increases, and both old and new businesses seek out funding.

Although the fact that the nation is trying to come out of a recession has made the venture capital industry face little challenges and hiccups here and there, it has now set on a steady path to growth.

This is reflected in rising security prices and increased mergers and acquisitions of companies and other businesses in recent years.

Kloe Venture capital is set to take advantage of this trend and offer clients the best venture capitalist services they can find.

TARGET MARKET

A detailed analysis of our target market reveals the fact that venture capital services are required by the small business just starting as well as large corporate bodies looking to grow.

Our services would not just be providing startup capital for businesses, there is also the need to search for such companies where capital invested would lead to massive growth in a short period.

Our target market does not just end with small businesses and other corporate bodies, we also extend our services to investors who would have the needed capital and are ready to invest in startups as well as other businesses with great growth potential.

The list below specifies the various businesses and individuals that our services are designed for.

• Small and medium enterprises • Accredited Investors. • Business accelerators and startups. • Investment Clubs. • Top corporate executives • Corporate Organizations.

COMPETITIVE ADVANTAGE

Providing capital for startup and other venture capital services is risky, now that cannot be denied, and Kloe Venture capital is not the first venture capital firm in Texas, USA.

This shows the competition is there already.

To keep up with the competition, we have developed investment strategies, which include providing good returns for our investors and clients, and great risk assessment skills to be able to recognize businesses with great growth potential.

To this end, we will be equipped with the right staff that is competent and trustworthy and would be given the right motivation which would include a quality welfare package.

MARKETING ADVANTAGE

The fact that sales and marketing is the brain behind every successful business is not lost on us at Kloe venture capital, this is why we have the best marketing team to help us take our business to the next level.

Our marketing team will be comprised of experienced and motivated individuals who would have the customers’ needs at heart.

The following marketing strategies would be adopted by Kloe Venture Capital Business Inc.

• Advertising our business in corporate organizations, startups, entrepreneurs, and investors by sending out introductory letters as well as flyers, pamphlets, and other marketing materials to them. • Advertising our business on social media platforms including Twitter, Facebook, Instagram, Snapchat, and others. • Listing our business on LinkedIn and other outsourcing agencies. • Make use of a direct marketing approach. • Request and appraise word-of-mouth adverts by clients.

FINANCIAL PLAN

Kloe Venture Capitalist Business Inc. has no pricing model since it is a business that deals with generating income from various investors.

Hence our main focus would be on ensuring we get good returns for our investors.

This business plan for Kloe Venture Capital Services will serve as a medium for bringing to success the vision and mission of this business.

The founders are also of the opinion that this business plan can be subject to change, to accommodate any unforeseen changes that may occur in the venture capitalist sub-sector, in the future.

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Venture Capital Business Plan Template

Download this Venture Capital Business Plan Template Design in Word, Google Docs, Apple Pages Format. Easily Editable, Printable, Downloadable.

Create a business plan designed to impress venture capital investors with our premium Venture Capital Business Plan Template. Business planning and raising venture capital go hand-in-hand. With our ready-made template, you can draft a business plan that would effectively attract venture capitalists while using the desire to raise capital as the key motivator in the business planning process. The file is easy to edit using the available file format of your choice. Don’t pass up this amazing opportunity and experience convenience now with this versatile template! Available in A4 and US print sizes.

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”