What to Send Investors: An Entrepreneur's Guide

This article provides valuable advice for entrepreneurs seeking venture capital funding. It covers the essential information to send investors, the importance of traction, and the pitfalls of sending long business plans and asking for NDAs.

• The article emphasizes the significance of demonstrating traction to investors.
• It advises against sending lengthy business plans, suggesting that an elevator pitch and a deck are sufficient.
• It also explains why entrepreneurs should avoid asking for NDAs from investors.

Don't Send a Business Plan

This section strongly advises entrepreneurs against sending lengthy business plans to investors. It highlights the fact that investors rarely read such documents, and instead prioritize a clear understanding of the company's traction and its plan for the next few quarters.

• An elevator pitch and a deck are sufficient to convey essential information about your startup.
• Investors are primarily interested in seeing the company's progress and potential for growth.
• Detailed plans can be discussed at a later stage, once the investor has a basic understanding of the company and its vision.

Don't Ask for an NDA

This section explains why asking for an NDA from investors is often futile and can even be detrimental to your chances of securing funding.

• Most investors are hesitant to sign NDAs due to the potential for litigation and the common occurrence of multiple companies pursuing similar ideas within the same market.
• Asking for an NDA can create a barrier to funding and signal a lack of experience in dealing with venture capital.
• Instead of relying on NDAs, entrepreneurs should focus on building a strong foundation for their startup and protecting their intellectual property through other means.

Traction Rules

This section emphasizes the paramount importance of traction for entrepreneurs seeking venture capital funding.

• Traction is defined as demonstrable evidence of growth, such as profits, revenue, customer acquisition, or user base.
• Investors are primarily interested in seeing evidence of real progress and potential for significant growth.
• A strong product and team are crucial, but traction often trumps everything else.
• The market size also plays a significant role in determining an investor's interest.

Understand Investor Priorities

This section summarizes the key priorities of venture capital investors.

• Investors are looking for companies with a strong market position, a compelling product or service, and a capable team.
• They prioritize traction over detailed business plans and other formalities.
• They are often willing to invest in companies with significant growth potential, even if they are not yet profitable.

Key Takeaways for Entrepreneurs

This section provides a concise summary of the article's key takeaways for entrepreneurs.

• Focus on building traction and demonstrating real progress.
• Avoid sending lengthy business plans or asking for NDAs.
• Understand the priorities of investors and tailor your communications accordingly.
• Build a strong team, develop a compelling product, and focus on achieving tangible results.

Elevate Your Pitching Strategy

This section encourages entrepreneurs to further refine their pitching strategy.

• Develop a concise and impactful elevator pitch.
• Create a compelling deck that highlights key milestones and future plans.
• Focus on demonstrating traction and showcasing the company's growth potential.
• Be prepared to answer investor questions and articulate a clear vision for the future.

Utilize Venture Hacks Resources

This section encourages entrepreneurs to utilize the resources available on Venture Hacks.

• Explore their free e-book on pitching to enhance your presentation skills.
• Submit your questions to ask@venturehacks.com for insights and advice.
• Engage with the Venture Hacks community for additional support and networking opportunities.