Because of the high hopes for technological innovation to enhance economic development, various media outlets are giving strong coverage to venture capital; secondly, there is a great interest in venture capital from all quarters. There are more and more people asking for venture capital and a group of companies are starting to manage venture capital funds. In addition, the threshold for listing on the main board for technology companies has started to be lowered and listed companies have restructured their assets and started to absorb technology companies. Venture capital has entered a good period of development. Now, the key is to get into the substance of the operation and operation, so that the technology enterprises can really get the venture capital investment and the investment in Qing can really get the return.
A plan is not just a disclosure, it is a business idea planning, a pitch book to attract investment, and a guidebook for future company operations. Here are five aspects that venture capitalists look for when evaluating a business plan.
1, Uniqueness of the product or service: ensure that there is sufficient market demand for the product, service, etc. and that the company can promote it in a unique way to establish a competitive advantage in the market.
2,Exhaustive market analysis: having an in-depth knowledge of the target market. Adequate knowledge and forecasts of current and likely future competitors, sufficient market information through various channels and thorough and detailed analysis.
3,Realistic financial projections: applying the data from the above market analysis to make objective, realistic and to some extent conservative profitability projections.
4, Clear recovery of investment: resale of the business to later stage investors, acquisition for other large companies, public listing and buy-back of shares by the business.
5,A strong management team: ensure that the management of the business has sufficient technical, marketing and financial management skills to realise the potential of the company, and ensure that an effective board of directors and advisory board members support the management.
High quality management is usually the most important factor for investors considering an investment. Because things work, the uniqueness of a product or service is determined by the technical competence of management, the reliability and accuracy of detailed market analysis and financial forecasts also reflect the quality, judgement and realistic attitude of management, and a clear approach to investment recovery reflects the confidence and commitment of management.
It is important to emphasise that venture capital firms place great importance on the quality of the entrepreneurs themselves and the composition of the management team when reviewing venture capital applications. This is why it is important for entrepreneurs to make every effort to include this in their business plan. For entrepreneurial companies, human resources are the most important capital that determines the fate of the company. And if you want to secure overseas venture capital, your management team must be international.
Raising funds for your business requires an all-out effort. Developing your business plan is the most important step you can take towards success. To secure venture capital, you need to have a complete business plan in place. Business planning lessons guide the development of your company and give an idea of "where you're going" and "how you're going".