What VCs Want to See

VCs Want to See the Following:

  • A very concise deck (7 to 10 slides max)
  • Who is on the team, and what are their abilities and experiences?
  • 20K foot view of the technology
  • How many patents filed? Status? Any other I.P.?
  • A detailed 3 to 4 month milestone timeline tied to funding
  • Explanation in detail how monies will be spent
  • Proof of concept, prototype, production plan
  • Required Infrastructure to scale?
  • Remaining cash that will be available when go out for next round?
  • Realistic plan to protect investor investment, and opportunity for next round?
  • Pro-forma financial plan (match to mid-stream spending plan/milestones)
  • Plan to manage the monies
  • Tools required to get to each milestone?
  • Initial costs, recurring costs, OH, R&D, S&M, etc.?
  • Size of market, market share expectations, # of years to reach?
  • Advantage and time to market versus others?
  • Killer solution to get to market fast
  • What is being used to solve the problems now, what competition is developing
  • Follow up plans for when problem changes
  • Type of corporate entity
  • Current valuation of the company? Back up valuation with IP, IO, etc.
  • Client customer letter of intent, P.O., or Insertion Order I.O.
  • Terms of equity? Typical seed round investments are investor 30 to 40 percent, founders 70 to 60 percent
  • Milestone dates and spending plan executed perfectly

Exit Plan

Exit plan (M&A, IPO, other?)

  • Investors invest to get a return
  • Returns occurs typically either through M&A or IPO
  • Plan to return principle and expected 20x ROI to investors