Start-Up Business Plans and Investor Presentations Preparation

Summary

This practice note discusses generally accepted practices and approaches used for preparing the business plans and investor presentations necessary to secure outside financing for start-up companies. In general, after initial investments are made by a start-up's founder(s) and the founders' friends and family, most early-stage start-ups raise capital from outside investors (such as angel investors and venture capital firms) primarily through equity or convertible debt financing transactions. As the start-up matures, the company will then typically raise traditional later-stage venture capital financing in the form of preferred stock offerings. The practices and approaches discussed in this practice note can apply to attracting funding for a start-up at both its early and later stages.