A good business plan does more than just inform readers about what your company does, how you earn money, or what you want to do. It persuades the reader that your company is awesome, gets them excited about the opportunity to get involved, and makes them want to help you succeed.
But how do you write a good business plan for investors? You probably didn’t go to business school and if you’re a first-time founder, it can be really hard to figure out how to do something so technical. But don’t worry! This guide will walk you through how to write a business plan for investors, will help you answer the most important questions about your business, and will show you the best ways to illustrate them. We’ve also thrown in some additional resources...
The Pitch Deck Traction Slide helps showcase early traction when we pitch investors. But what kind of traction metrics matter to investors? Let's walk through some common pitch deck traction slide examples showcasing user growth, growing revenue, and scaling active users.
Also, if you're concerned about showing traction in your pitch deck, don't sweat it. We'll show you how to position your traction slides even if you're pre-revenue.
The perfect traction slide pitch deck formula incorporates three investor questions into a single slide:
Product Progress + Customer Acquisition + Visible Growth = Traction
The most stunning pitch deck examples incorporate all of these factors into their traction slides. Let's look ...
Startup funding — or startup capital — is the money needed to launch a new business. It can come from a variety of sources and can be used for any purpose that helps the startup go from idea to actual business.
While we often hear about venture capitalists and angel investors when it comes to startup funding options, it turns out that’s just one of the six top sources of startup capital. Of the $531 billion raised in startup capital each year, $185.5 billion is from personal savings and credit, $60 billion is from friends and family, $22 billion is from venture capitalists, $20 billion is from angel investors, $14 billion is from banks, and $5.1 billion is from crowdfunding....
A lot of people confuse crowdfunding with crowdsourcing. While they are similar in that they both allow people to primarily leverage mass-community collaboration, they relate to two different things entirely.
So, what’s the key difference?
The short answer:
Crowdfunding is the process of sourcing money or funds from a group or groups of people.
Crowdsourcing is the process of sourcing information or skills or end products from a group or groups of people.
The long answer:
In a crowdfunding campaign, a person, business, or organization raises a relatively small amount of money from a large group of people. Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and indiv...
With today’s fast-paced, ever-evolving and competitive market, a lot of companies decide to create a board of advisers that can give them fresh ideas and recommendations to keep up with today’s world.
For small companies, creating a well-run advisory board can give them an edge over their rivals. An advisory board that is composed of experienced people can help a company increase sales and flourish in their chosen industry. Seems pretty straightforward, right? But not a lot of companies do this or, if they do, do it right.
The Basics: What is an Advisory Board?
An advisory board is a group of consultants who provide advice and give support to the management of a company. They have no authority or power to arbitrate in corporate matters. The...
Welcome to Phase Three of a four-part Funding Series — The Pitch:
Phase One - Structuring a Fundraise
Phase Two - Investor Selection
Phase Three - The Pitch
Part 1 - Anatomy of a Pitch (←YOU ARE HERE 😀)
Part 2 - Market Size
Part 3 - Revenue Model
Part 4 - Operating Model
Part 5 - Customer Definition
Part 6 - Customer Acquisition
Part 7 - Funding
Part 8 - Key Pitch Assets
Part 9 - Traction
Phase Four - Investor Outreach
Any startup interested in raising money will need a pitch presentation to share with potential investors, and successful startups all have one thing in common (most likely) a solid business idea backed by a convincing presentation deck.
In this article, we will talk about the 10 sections of a pitch and what they include.
Let’s dive in...
Angel investors are typically high net worth individuals who invest very early into the formation of a new startup company, usually in exchange for convertible debt or equity. Angel investors serve as a critical bridge between the very early stages of a startup and financing they’ll get later on. That’s because angels are much more likely than other types of investors to take on high risk investments without much proof of return. In other words, they’re betting on you and your idea — not your metrics.
Angel investors tend to invest in companies that are in industries they know a lot about. So, for example, if an angel investor made a lot of money in the real estate industry, you can imagine they would be most comfor...
Just a couple of weeks ago, I closed my first ever investment in a private Silicon Valley startup. I didn’t go through the standard procedures though: while I did conduct my due diligence, I did not get pitched face-to-face in a nice conference room, negotiate deal terms, or seal the deal with a firm handshake.
Instead, like many other educated folks who are excited about startups but don’t quite have the wealth to be accredited investors, I invested through a crowdfunding campaign.
There’s a storm of hype building around this new equity crowdfunding model, which allows middle and even working-class people to invest in a startup by the tens or even hundreds of thousands, without many of the onerous regulatory and accounting issues that so ...
Women are starting businesses at impressive rates — but they’re still not getting as much money to fund those new businesses and startups as men are.
According to research from Kaufman, 40 percent of first time entrepreneurs in the United States are women. Even more impressive? The number of women-run businesses in the US is growing at twice the rate of man-owned businesses.
But women aren’t getting nearly as much money for those businesses as men are. In the startup world, women founders got only 2 percent of VC funding in 2017.
That means women are forced to look to other money sources when they’re looking to launch a startup or small business. And many are looking specifically for business loans for women.
However, there aren’t actually...
There’s one major question that nearly everyone faces when starting a small business or startup: Where are we going to get the money? One option is a small business loan.
In general, a small business loan is any loan that exists to help a small business or startup with little to no business history. While there are a range of financing options for small businesses and startups, let’s take a look specifically at SBA small business loans.
A SBA small business loan is a loan that is backed by the Small Business Administration (SBA). Founded in 1953, the SBA is a federal government program that provides support to small business owners in the form of mentorship, workshops, counseling, and small busine...