Prajakt Raut

1. Writing a business plan
Getting your business investment ready
____________________________________________
Prajakt Raut
Founder -

2. Approach investors when you
have clarity on how you will go
from where you are to the next
milestone.

3. Concept/MVP
Accelerators, F&F, angels
Hypothesis and product tested
Angel networks
Initial traction
Angel networks, Early stage VCs

4. Accelerators/
Angel Investors/
Seed Stage
Early- stage VCs VCs / PEs
Investor
types
Stage of
investment
Concept Risk Stage Early, Early-Growth
Stage
Growth Stage
• Rs.25 lacs to Rs. 5 cr
• Sweet spot – INR 1cr –
3cr. For investors
• Rs.20 – 50 lacs for
accelerators
• Rs.2 cr - Rs.50 cr
• Typically between Rs.10
cr – Rs.25 cr
• Rs.50 cr +Typical
investment
size
Discovering what
works
Replicating at scale what worked in a pilot.

5. Business plan is a useless product.
But a priceless process.

6. Make a business plan even if you are
not raising capital

7. A great idea or product is not the
same thing as a great business.

8. Angel Investors &VCs ‘buy’
shares in your ‘company’.
But they make money only if they are
able to sell the shares at a higher price
than they bought it at.

9. Angel investors andVCs seek 10x +
return on their investments

10. Value proposition is key.

11. Clarity of communication is super
important.

12. Work your business plans on a
month-on-month basis.

14. Overestimate costs.
Under estimate revenues.

15. How much to raise?
Enough runway for 15-18 months.

17. What do investors look for
in ventures they invest in?

18. Key criteria for investors
• Is the market large?
• Does the venture have a reasonably strong chance of
being a dominant player?
• Is the business case strong and will investors get an
exit?
• Is this the team that I can bet on?

19. Your focus should be to
convince investors that your
startup is a good investment
opportunity

20. Investors look for competent and
committed teams
• Passion and deep interest in the domain
• Deep understanding of the dynamics of the
business around the concept
• Willingness and competence to implement the
concept (not just ideate) – experience is hugely
valued, if not mandated

21. Investors look for plans with
practical milestones
But large aspirations

22. Investors look for teams with
focus in the initial phase
Even when entrepreneurs have identified
multiple opportunities with the concept

23. Investors look for a strong
implementation plan
“According to Gartner, the market will be USD 20 bn in 2020”
is not a reason to invest
How you will get the first 1000 users or first
2-3 partnerships / enterprise customers is.

24. Investors seek teams that
have a clearly identified
immediate goals and tasks
What do you need to do to launch?
What are you going to test?

25. Investors seek a plan that clearly
outlines how much funding is
required, where it will be used and
what it can achieve
You should seek from angel/early investors only as
much as you require, to go till you can attract VCs
In rare cases, the initial funding is sufficient enough
to take the startup to sustainability

26. Finally, investors look for
teams they can trust
Be honest about risks & challenges, be open
about limitations and weaknesses
When you tell them where you need help,
they will be able to provide inputs

27. What should a pitch deck cover?
1. The problem / opportunity you are addressing
2. Your product / service i.e. the solution
3. Team
4. What is the size of the opportunity
5. What is the value proposition/positioning
6. Revenue streams, Business model & Business Case
7. Competitive landscape
8. Go-to-market plans
9. Funding need, use of funds and what you will achieve
10. Exit potential

28. In Summary
• Investors invest in a solid business that
large market
• Investors invest in high-quality teams with large
aspirations
• Investors invest in clearly defined plans with
milestones
Make the investor go back feeling “What a great
concept. I think the market is large and the
team will deliver.”

29. Thank you for your time.