Marketing section for a VC-targeted Businessplan


3

By VC-targeted, I mean a businessplan that I send to VCs as part of the first contact package..

It concerns a saas/paas startup with a very clearly defined target group. We have preliminary market research results but are not online yet.

Brainstroming and some google research led to these content items:

*channels
*specific activities in these channels
*estimated conversion rate through these
*estimated costs of these measures

What do you think?

Update:
We have to write a businessplan as partial requirement for a part government funded investment into our startup. so i figured we might as well make it useful for something more than just appealing to bureaucrats..

Marketing Venture Capital Business Plan

asked Jan 28 '10 at 22:55
Blank
Max
16 points
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2 Answers


1

Dmitry is correct in that a VC will not read your business plan. What they want to see is:

  • Executive Summary (1-2 pages)
  • Pitch Deck (less than 14 slides)
  • Financial Model (5 years of Pro-forma)

As for content of the marketing section of the pitch, they want to see markets over a billion dollars that you can capture > 10% market share within 3-5 years. The questions that will run through their mind that you need to answer are:

  • Market Size: It has to be a huge market (> $1B) or they are not interested
  • Customer Pain: Is what you are solving a real customer issue
  • Customer Traction: Do you have lead customers that will buy today.
  • Competitors: Who out there will directly compete with you
  • Will this scale: Scale means can it grow quickly or is it a niche, hard sell.

It's hard to nail all of these but you really need to try. VC's see thousands of deals a year. They pick maybe 200 to pitch. Of those 20 go to due diligence. Out of the 20, 2 get funded. So, you have to stand out as an excellent deal.

answered Jan 29 '10 at 00:09
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Jarie Bolander
11,421 points
  • thanks for the roundup jarie. 2 out of 200 sounds very low, i know it can't be much higher (ie. double digits), but 1%.. – Max 9 years ago
  • That is for each VC partner. The reasoning is simple. They can only be on 6-8 boards at a time. The typical deal lasts 3 years, therefore, they can only do 2 deals a year or they get saturated and can't find new deals. – Jarie Bolander 9 years ago

0

I seriously doubt any VC would read a business plan on first contact. Create a pitch deck sticking to the 10-slide rule, albeit maybe not literally. You may find some decent guides and samples on SlideShare.

UPDATE: As you wrote that you absolutely have to have a business plan, check out the SCORE templates.

answered Jan 28 '10 at 23:18
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Dmitry Leskov
606 points
  • thanks for the links dmitry. i guess the pitch really is what i should focus on. – Max 9 years ago

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