What Should You Send To Prospective Investors?

Venture Hacks has two great posts up about what kind of stuff you should send to investors if you are looking for financing.

  1. What should I send investors? Part 1: Elevator Pitch.
  2. What should I send investors? Part 2: Deck.

Plus, as a special bonus, you get to see Ali G pitching investors.  This nicely compliments my post from June 2004 titled The Torturous World of Powerpoint

  • Siva

    Great article. I have a suggestion though. Why not include a sensitivity analysis as well? With all the economic recession and slowdown engulfing our lives, we are getting used to seeing businesses that have survived centuries crumble down overnight caught in this economic rut. Today if someone is interested in putting money into your business, he wants to know how you can survive an economy like this, besides how you would grow and multiply in a favorable climate. I think it will be a great idea to show them what your business would look like when the external environment turns hostile. This way you tell the investors that you have planned for lean periods as well. If you don't know what sensitivity analysis is, it is just a model showing how vulnerable your critical financial variables are to changes in external factors. For example, how much change can you see in your sales, when the economy shrinks by 25%? You can make this kind of analysis in Excel with an assumption that the other factors remain constant. It is better to seek professional help. I recently got a sensitivity analysis model built from http://financialmodel.net.

  • Tim

    It is a good idea to include a sensitivity analysis along with the deck sent to the investors for pitching. However from what I know, most of the venture capital firms have their own team of analysts to look into the number provided by the prospects. Analyzing the impact of external environment on business performance is one of the kind of analysis that they usually perform. Anyway, checked http://www.financialmodel.net and found the content pretty useful.