The Investment Overview

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The Investment Overview is used in conjunction with your Long Form Executive Summary to not just solicit interest from an Investor or Venture Capital Firm about your Business Opportunity, but also to give the Investor the necessary facts about your opportunity so it can be quickly qualified and vetted.  The Venture Capital Process can be lengthy, but by providing the right documentation (already prepared prior to your Funding Initiative) from the get-go, you will significantly shorten the VC process and garner the attention your deal deserves.  The Investment Overview should accompany your Long Version Executive Summary (basically a mini- business plan) so the Investment Group can gather more in depth information about your Company, Product, People and Competitive Edge.

An Investment Overview is very detailed, yet it should be brief and concise.  Your Executive Summary and Business Plan will provide the next levels of detail the Venture Capitalist requires.  You will find a suggested Investment Overview Template in this article, and we recommend you customize it to meet the specific terms, objectives and requirements of the Investment Firm you are targeting.  Venture Capital Firms readily provide their investment Criteria and Requirements so that prospective entrepreneurs can provide them the information necessary to determine the deal’s qualifications in view of their investment parameters.  This is probably the single most important document you will send to prospective investors, so ensure it is targeted, concise, complete and accurate, with no mistakes or sloppiness.  Develop the Investment Overview last, after you have completed your Business Plan, Executive Summary, and Loan Package.

Suggested Investment Overview Format & Template:

      I.        Company

A.    Company Name

B.    Location

C.    Business Type & Industry

D.    Business Stage

E.    Business Form

F.    Business Formation Date

G.    Company & Venture Overview

     II.        Product and Service

A.    Product & Service Description

B.    How the Product & Service is Unique

C.    Proprietary Characteristics

D.    Patents, Trademarks & Service Marks

    III.        Experience

A.    Business History Summary

B.    Founders, Directors & Principals

C.    Managers & Key People

D.    Track Record

E.    Previous Venture Capital & Investment Deals

F.    Key Experience

   IV.        Market & Competitive Edge

A.    Current & Projected Market Penetration

B.    Market Niche

C.    Competitive Edge

    V.        Financial Overview

A.    Investment to Date

B.    Principals’ Equity Contribution

C.    Company Net Worth

D.    Principals’ Net Worth

E.    Investment Required

F.    Terms

G.    Proposed Structure

H.    Exit Strategy

I.      Investment Stage

J.     Liquidity Options

K.    Valuation Pre & Post Investment

L.     Current & Projected Debt to Equity Ratio

M.   Current Ratio

N.    Acid Test Ratio

O.    Collateral

P.    Current Liens, Loans & Terms

Q.    Year to Date Profit (Loss)

R.    Projected 1^st to 3^rd Year Profit (Loss)

S.    Current & Projected Net Profit Margin (%)

T.     Appraised Values (and Methods)

U.    Return on Equity

V.    Return on Investment

W.   Management, Market, Technological & Investment /risks

X.    Funds Disbursement Schedule

   VI.        Due Diligence Synopsis

A.    Litigation

B.    References

  VII.        Five Key Questions & Answers on this Deal

A.    Why is this a viable opportunity?

B.    Why I am doing this venture?

C.    Who I talked to in similar businesses?

D.    Have I tried out the Product or Service in the market?

E.    Has my Plan been reviewed and critiqued by Accountants, Attorneys, Bankers, Mentors, Consultants and other Professionals?

For more information on Venture Capital Finance Strategies, Business Planning, Financials, Financial Formats, Financial Formulas and Calculation, please consult ABC Business Consulting’s Comprehensive Business Plan Guide & Workbook.

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