Presenting a New Technology to a Venture Capitalist

When presenting a Business Plan for a new Startup Technology Company to a Venture Capitalist you need to understand that they are looking for a one to three year kill. In other words they wish to fund a company that can be sold for 10 times or more their investment in three years.

They are not interested in a long-term investments, but rather a short-term three-year maximum turnaround. They will plan on selling their shares or their percentage of the company whether you like it or not. If you are an entrepreneur who has fallen in love with your own idea and wants to do this for the rest of your life then perhaps Venture Capital Cash is not a good idea for you.

When presenting your business plan you must also understand that the technology you are wishing to refine and bring to market needs to be 99% complete. They are not interested in research and development funding for anything that will take over five years. It is best to have technology that you have patents for and potential clients lined up.

Venture Capitalists are also looking for businesses in new technologies, which are desirable to large corporations so they can sell this technology along with the startup company. You should have prepared a two or three paragraph executive summary to pitch your idea to the venture capitalists if they seem interested then you should have a two-page executive summary and a non-compete clause that you can send along with it. Once they sign that and if they are still interested then you can see in your entire business plan to them and follow up in one week. Please consider all this in 2006.

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