Whatever vision you have for your high-growth company, you will have to redefine it until it becomes so clear, so undisputedly compelling, that any person investing in your market or product niche will want to be a part of your future.
When planning how you will communicate your idea, you need to know to whom you are writing. Most venture capitalists are essentially investment advisers or fund managers. Some of these people invest their own and their family’s money. Others invest the money of people like you and me, who have a portion of their paycheck vested in a pension fund or who have invested in a high-yield mutual fund.
Most industry-specific VC fund managers have degrees, often advanced degrees, relating to the scientific or technical area in which they invest. In addition, they often hold an MBA. This combination of technical and business expertise makes them an ideal audience for your vision.
To impart your vision to the venture capitalist, you need to tell where you have been with your company, where you are, and where you are going. As you do this, you need to strike a balance between airy, fluffy gloss (bad) and turgid, enervating detail (equally bad). You also have to provide financial tracking of your vision so that their investment (your company) seems likely to achieve the investment criterion of five to 10 times earnings in five to seven years.
Marilyn Holt, CMC CEO Holt Capital Seattle