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| | | BabyFodder
Group: Forum Members
Last Login: 10/27/2006 10:37:13 AM
Posts: 3, Visits: 21 |
| | We are a 7-year-old software company (with several revenue-generating product lines) that is getting ready to release the first .NET accounting/ERP package for small & mid-size businesses in October. The other principals and I have invested all of our profits for the past 3 years into the R&D of this new product. Most of the R&D is complete and we already have beta customers but we are interested in raising money to expand market awareness. We have already prepared detailed projections of headcount, revenues, operations and expenses in Excel as well as an investor presentation in Powerpoint, but it looks as if most of the VC's Web sites request a Business Plan doc upfront. Is sending a hard copy or Web submission of a business plan the best way to make initial contact with VC's? Or is it better to send the Powerpoint? I am also wondering if it would be better to try to make an introductory call prior to submitting information so that my business plan doesn't go straight into the circular file. Which mode of communication is most likely to actually open a dialogue with a VC? Any advice is appreciated and TIA. Rebecca |
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The GodFodder
Group: Administrators
Last Login: 1/28/2008 9:24:38 PM
Posts: 119, Visits: 275 |
| | Hi Rebecca, thanks for posting! This is one of the basic questions facing entrepreneurs: How and when to seek venture capital. I think we should also add "if" to that question, as in, "if we should seek venture capital." As a shameless plug, I wrote a book that covers this topic in detail, you can take a peak here: As a short answer, the best thing to do is to do your homework. Veture capital firms have websites that list in detail the types of companies they are looking to invest in. Not only the type of company (software, medical device, biotech, etc.), but the stage of company (e.g., the revenue situation). Put together a short summary of your company -- what you do, how you do it, how much you've invested to date, bios of the executive team, revenues, profits (or losses), how much money you're looking for, and what makes you different/better than your competitors -- and after doing your homework, email it to appropriate VC firms. Keep it short (3 or 4 paragaphs) and don't send attachments. Everything you need to say at this point you should be able to say in a short, simple email. A good way of starting this process is to say, "I'd like to introduce my company to your firm, to explore whether we might be a fit for your fund. Here's a short overview, if you'd like more information, I'd be happy to email our full business plan to you. If you have any questions, please contact me at your convenience. My contact info is below." Keep it short, honest, and objective. Avoid any subjectivity in your email, otherwise you'll sound like a snakeoil salesman (e.g., "This is the greatest thing, it solves all kinds of problems, and if you don't invest now, you'll miss out!") Hope that helps!
Cheers! Bill
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"It doesn't take talent to write, it just takes pen and paper...or a computer." |
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| | | BabyFodder
Group: Forum Members
Last Login: 10/27/2006 10:37:13 AM
Posts: 3, Visits: 21 |
| | Thanks so much for the advice! I have been sending out a few emails to VC's that look like a good fit and have already gotten a positive response. I really appreciate your willingness to share your experience. Rebecca |
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