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Venture Capital Proposal Template

What We Do

PandaTip: This title should be as concise as possible, but still descriptive enough to get across exactly what it is that your business does. It’s very important that any potential investor can quickly see whether your proposal could be of interest to them, otherwise, they may not bother to read any further. Try to keep it to around 50 characters or fewer.

[Short Description of Business]

Investment Summary

PandaTip: Use this section to briefly describe what level of investment you’re seeking. Also, touch on how you plan to use this investment to make it clear that you have a plan for the money. Finally, you should always give an estimate of what you expect the investors to get in return and an approximate timeframe. Venture capitalists will be looking for this key information first in any venture capital proposal template, as it’s the most important factor in their decision of whether to invest.

[SENDER.Company] is a cutting-edge business offering [Short Description of Business] to [Target Market]. We are writing to you to seek a $[Investment Amount] angel investment from your company. We will use these funds in order to expand our operations and specifically grow our [Areas of Investment] department(s). Based on our comprehensive forecasting, we expect you to see an ROI of [Percentage ROI] in just [ROI Period] months, making this an excellent business opportunity to invest in a highly profitable field.

Investment Description

Our [Short Description of Business] business was started to address a demand for [Services Offered] in the marketplace. We began operating in [Date of Founding], and have since steadily grown to where we are today [Indicator of Growth].

PandaTip: This section of the investment proposal template should include a short history of your company in order to provide a bit of context for the potential investor. You could also include details of your management team, for example.

We understand that we operate in what can be a competitive field, so aim to outcompete similar businesses by offering the following services:

[Unique Selling Point(s)].

PandaTip: Here, try to describe the ways in which your business is different from/better than similar competitors. Articulating this well will help to convince readers that your company has potential in the industry and is worth the investment. Try to hit on all the main points, but don’t go into too much detail or use so much business jargon that the reader loses interest.

This makes us unique in the [SENDER.Industry] industry and gives us a strong competitive advantage.

Expected Returns

PandaTip: This is what the prospective investor is really interested in – what they are going to get out of the deal. Add some detail about exactly where you plan to use the money in your business, and the different revenue streams that will generate income. Make sure you don’t exaggerate the figures and use accurate industry analysis. Your reader is likely to be very experienced with finance and business growth, so if they notice over-inflated estimates they may immediately disregard your proposal.

We expect that your investment of $[Investment Amount] will result in an [ROI Percentage] over [ROI Period] months. We aim to achieve this via investment of capital to the following areas of the business:

[Area(s) of Investment]

PandaTip: Add some more detail about the future of the business in the longer-term, but try to be specific as possible with the timeframe and figures as this demonstrates that you’ve done your research and are taking your business seriously.

To add to this, our business model can be scaled [Scale of Expansion] over [Expansion Timescale]. This will, in turn, produce a forecasted [Growth Percentage] growth in revenues.

Exit Strategy

PandaTip: This section is a chance to give the venture capital firm a way out somewhere down the line, which they will see as a way to mitigate risk. You can include things like plans to take the firm public in a given timeframe, and how the investor’s share is forecasted to be worth significantly more than it if they buy now. It’s something that can set your venture capital proposal template apart from others.

References

PandaTip: Here, you should provide the contact information of any accountants and finance professionals you have used as part of your business planning. This can greatly help to legitimize the growth forecasts you’ve quoted in your proposal and increase the chance of securing investment.

Summary

PandaTip: In the summary of your investment proposal, you want to reiterate the key points you’ve made throughout the proposal, such as the reasons why your company is better than other similar companies, as well as the value that you can offer to the investor.

We genuinely believe that [SENDER.Company] has huge potential in the [SENDER.Industry] industry. Our team has proven expertise, including [Relevant Experience]. To add to this, our unique approach makes [SENDER.Company] a powerful force in the marketplace.

With our demonstrated success, as well as our predicted future growth, we are offering you a valuable investment opportunity.

If you’re interested in learning more about [SENDER.Company], please don’t hesitate to get in touch. We have a full business plan available upon request that details our current standing, future plans and forecasting data to demonstrate the value we can bring to you.

Contact Details

[SENDER.FirstName]
[SENDER.LastName]
[SENDER.Company]
[SENDER.Address]
[SENDER.Phone]
[SENDER.Email]

References

This contract cannot undergo any alterations by either Party, except for when submitted in writing and agreed on by both the Parties.

Relevant Laws

[Financial References]