Posted by MedTech Expert on 2008-02-27
Tags: Pitching Busines Plan Materials
Part of the science of getting in the door of a VC is to stand out from the crowd. Unfortunately, inertia is often a big factor in business plan screening. Contrary to popular opinion, every word of every plan is not read. First the plan gets a glance. Then it gets a skim. Then it gets a more detailed read. But every step is contingent upon the reader finding a reason to go the next one.
Here's the truth: most investors screen out rather than screen in. Especially if they're overwhelmed and very time constrained as most are.
• if your business overview looks like it needs to be deciphered - you're out
• if they don't see what they are looking for in a glance - you're out
• if they don't have all the information they need to know -you're iffy
Eliminate objections and pessimism before it arises by explaining in a very well thought-out cover letter what makes your business different - and position it as one that's advantageous to the firm's objectives, if you can.
Your business overview is a screening tool. It's the point person on your investor search. It needs to screen you in, and it needs to do that by being read, not ignored. If you want to get in the door, this is one of the keys that can open it.PRIVATE: Members Only