what do investors look for in a business plan
TRANSCRIPT
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 1/18
www.thehubforstartups.com
How to present a business planto investors
Prajakt RautCo-founder - Applyiounder ! "he Hub for #tartups
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 2/18
www.thehubforstartups.com
$i%erent investors invest indi%erent sta&es of a startup.
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 3/18
www.thehubforstartups.com
AngelInvestors
Seed-stagefunds/ Early-
stage VCsVCs / PEs
Investortypes
Stage ofinvestment
Concept Risk
StageEarly-Grot!
Stage
Grot! Stage
• Rs.'( lacs to Rs. (
cr
• #weet spot ! )*R +cr
! ,cr.
• Rs.' cr - Rs.( cr
• "ypically between
Rs.+ cr ! Rs.'( cr
• Rs.( cr "ypical
investment si#e
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 4/18
www.thehubforstartups.com
/our focus should be to
convince investors that yourstartup is a &ood investmentopportunity0nless you can convince them that your startups will
create value1 investors will not be interested
Path to protability ! at scale ! is preferred over 2uickerprotability on smaller scale ! they are playin& forhi&her valuation
(Early stage investors will look for 8 – 10x returns in about 3 –5 years)
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 5/18
www.thehubforstartups.com
3ey criteria for investors
+. )s the market lar&e
'. $oes the concept4product have a
reasonably stron& chance of bein& a
dominant player
,. )s this the team that can do it
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 6/18
www.thehubforstartups.com
/ou till typically &et about ' - ,
minutes for your presentation
3eep half the time for presentation and half for56A
7#how the dish. $on8t detail the recipe.9 ! theobjective of the rst presentation should not be
to share details but to e:cite the investor to meet
you a&ain for details
$on8t state the obvious ! focus on thin&s that
most people are not likely to know e.&. whenpresentin& about a solar ener&y business1 data
on how renewable ener&y is important is not
necessary. ;ost people &et it.
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 7/18www.thehubforstartups.com
)nvestors look for the business around the
concept or product or service. $ence% in your
pitc!% cover &- <hat are you &oin& to do ! concept1 customer se&ment1 bi=
model
- $o are you going to make money ' (usiness case
- "he si=e of the opportunity ! potential
- How are you &oin& to do it ! implementation plan
- Current status
- <ho8s behind this - team
- Competition 6 Risk factors
- How much money do you need and what will you use it for
- >:it ?ptions
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 8/18www.thehubforstartups.com
<hat do investors look for@
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 9/18www.thehubforstartups.com
)nvestors look for competent and committed
teams
-Passion and deep interest in the domain
- $eep understandin& of the dynamics of the
business around the concept ! who will buy1
why will they buy1 challen&es1 etc.
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 10/18www.thehubforstartups.com
)nvestors look for plans with practical
milestones
ut lar&e aspirations
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 11/18www.thehubforstartups.com
)nvestors look for teams with focus in the
initial phase
>ven when entrepreneurs have identied multiple
opportunities with the concept
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 12/18www.thehubforstartups.com
)nvestors look for a stron& implementation
plan
7Accordin& to Bartner1 the market will be 0#$ ' bn in''9 is not a reason to invest
How you will &et the rst + users or rst '-, enterprise
customers is.
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 13/18www.thehubforstartups.com
)nvestors seek teams that have a clearly
identied immediate &oals and tasks
<hat do you need to do to launch@
<hat are you &oin& to test@
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 14/18www.thehubforstartups.com
)nvestors seek a plan that clearly outline how
much fundin& is re2uired1 where it will be
used and what it can achieve
/ou should seek from an&els only as much as you re2uire
to &o till you can attract Cs
)n rare cases will an&el fundin& be suDcient to take the
startup to protability
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 15/18www.thehubforstartups.com
inally1 investors look for teams they can trust
e honest about risks 6 challen&es1 be open aboutlimitations and weaknesses
<hen you tell them where you need help1 will they be
able to provide inputs
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 16/18www.thehubforstartups.com
)n #ummary
)nvestors invest in a business case around
products4services that address lar&e markets
)nvestors invest in hi&h-2uality teams with lar&e
aspirations and who have a clear understandin& of what it
will take to achieve the potential
)nvestors invest in clearly dened plans with practical
milestones
;ake the investor &o back feelin& 7<hat a &reat concept.
) think the market is lar&e and the team will deliver.9
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 17/18www.thehubforstartups.com
7/25/2019 What do Investors Look for in a Business plan
http://slidepdf.com/reader/full/what-do-investors-look-for-in-a-business-plan 18/18th h bf t t
Prajakt Raut
>ntrepreneur and >ntrepreneurship >van&elist
;ail E prajakt.rautFthehubforstartups.com
lo&E www.thehubforstartups.com
5uoraE www.2uora.com4Prajakt-Raut
Co-founder - Applyiounder ! "he Hub for #tartups