Do Venture Investors Require Business Plans?
Q: Do VCs and angel investors really require a complete business plan? I’ve read a great deal of conflicting advice about the value of a business plan with regard to funding.
A: (Jason). Well, it sort of matters how you define “complete.” You could probably ask 10 VCs and get 10 different answers, although I think over time the formal business plan is losing some of its importance, much like how formal PPMs (Private Placement Memorandums) have lost some importance the fundraising world for VCs.
Worry more about the substance, not the form. I hate reading business plans that are 40 pages long, with about 5 pages of actual info, with the pertinent 5 pages being repeated several times.
Make sure that you explain what your company does, why doing it “matters,” what the financial model is, who the executive team is and how do you shake out against the competition. Whether this is in a formal word document / business plan, or is in powerpoint form, doesn’t really matter so long as the proper information is presented.