What a VC Wants to See
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 (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