Do you need a business plan to raise venture capital? If you need to raise capital from a venture capital firm, you will need a high quality and detailed business plan and financial plan. The business plan should contain well-developed marketing, operational, financial, and growth strategy. The pro-forma financial plan should typically be 5 years and contain at least monthly detail in year 1 and quarterly detail in year 2-5
VC firms receive thousands of plans each year, but invest in only a few opportunities. In order to garner a venture capital investment, you will need to have a unique offering in a strong market and strong management team. When raising venture capital, your business model will need to align with the investment criteria of the venture capital firm that you are submitting to. A few questions that venture capital firms are most concerned with are:
- Who are your competitors?
- What are your competitive advantages?
- Who is the market?
- What is the growth strategy?
- Who is the management team?
- Who are the customers?
- How much has been invested thus far into the company?
A venture capital business plan must be comprehensive in regards to both the business plan and financial plan. The business plan will be a foundation for presenting your investment opportunity to investors on a written and oral basis. Capital West Advisors can develop a high quality and detailed business plan and financial plan for you to raise venture capital.