Rocky's Dilemma of Innovation Prevention:

Unless the results are known in advance, funding agencies will reject the proposal.

What Different Types of Venture Capital Investors Look for In a Business Plan

Business angels

Venture Capital Firms

• An opportunity to add their own skills and creativity to the venture

• A trustworthy entrepreneur with a compatible personality

• A firm in a niche market

• An early stage venture whose development they can still shape

• Healthy financial projections

• A venture that is within driving distance for the investor

• An experienced and well-balanced management team with a sound track record

• A firm with a unique concept or idea that meets an unmet consumer need

• A target market and proven niche product with almost unlimited growth potential

• Strong competitive position

• Very healthy but realistic, financial projections

• A firm that is usually developed and looking for expansion funds (not a start-up)

• Preferably a high-tech firm, but also firms in other sectors

• Detailed financial statements (preferably with milestone charts)

• A potential equity stake of around 30% of the company in exchange for funds (though there is much variation)

• Potential exit routes identifiable at the time of investment