The prevailing opinion is that now is not an opportune time to
solicit venture capital funds or private equity investment. The
fundamental objective of a venture capital fund is to make quality
investments that will yield a good return.
The accurate and clear presentation of financial information
is a vital part of that process. Also extremely helpful is for
business-owners and their CPA or other advisors to put themselves
in the place of the prospective investor. Wherever information
is not direct and forthcoming, it strains credibility and quickly
diminishes the presentation’s value.
There are several ways venture capital investors can be convinced
and even impressed by a presentation and its presenter. First,
the presenter must demonstrate complete familiarity with the
business and be able to answer any and all questions about the
scope of the operation. Venture capitalists recognize that a
business owner’s CPA or other financial advisor may understand
the finances of the business better than the owner does.
While the presentation does not need to include audited financial
statements, proof of regular, consistent reviews can instill
confidence. In addition, tax returns for at least the most recent
several years should be readily provided.
