How To Write An Investment Proposal: A Guide + Free Template

Investment Proposal

Most startups look for funding. To get one, you’ll have to know how to draft an investment proposal. This is because this business presentation can help you reach financial support for your startup. 

So, what exactly do you need to include in an investment proposal? Here’s what you need to know. 

Investment Proposal

How to Write an Investment Proposal

An investment proposal is a vital tool for any startup. It’s what will help you land a meeting with potential investors. Through the document, you can present critical information about your company, product, or project and potentially attract investors to fund it. 

Before you get started in writing an investment proposal, you will need to do the following:

Know your market and competition

Also known as the discovery or pre-development phase, you gather important data from a market analysis. The information you collect from this will help you eliminate risks that may arise from a lack of market demand, unexpected expenses, and other issues. 

Assess your product

If you already have an early version of your product, you can start drafting investment proposal to send out to potential investors. This way, you can figure out what your business goals are. 

Research your potential investors

You should also research what investors you wish to attract at this stage. Are they angel investors/groups? Or are you more interested in getting a bank or a venture capital firm to support you financially?

By preparing these things, you can make your investment proposal custom fit to who you are pitching to. 

Free Investment Proposal Template

Knowing how to write investment proposals can greatly benefit you as a startup owner. But it’s also wise to use an investment proposal template to understand where to start. 

Investment Proposal

What to Include When Writing an Investment Proposal

A winning proposal includes these key elements:

Company Introduction

Start your proposal with your company’s name and a brief description of your startup. You can also include information on what you do and your company’s current status. 

This lets the reader know who you are and what your business is about.

Identify the problem

In the next section of the proposal, state the problem you are trying to solve. Describe what it is that your customers need or try to achieve. Also, add information on your pain points and how your current status cannot meet your customers’ needs. 

Present a solution

Present a solution to the problems you previously identified. Since investors will be most interested in this part of the proposal, you have to ensure that it is written in a way they can easily understand. So, try to edit this part as much as possible if you can. 

A good tip: You can usually write this part last so you already have the information available to use.

Show your market research

It’s also a good idea to include the results of your market research in your investment proposal creation. This is your way of showing potential investors how knowledgeable you are about your product and its market. 

Show how your product can be profitable and how you intend to make that happen. 

Reveal your traction

Use a graph to show off your product’s traction in the market. This way, you can make this information visually interesting to potential investors. 

If you do not have any traction to present, it may be best to work on it before seeking funding

Investment Proposal

Identify your goals

Be open about your goals and how much funding you’re hoping to raise. It’s also wise to share how much of the budget will be used to reach your goals. 

At the same time, be realistic. Give your audience have a realistic figure instead of an estimate.

Present your team

Potential investors will also need to know who your team is. They need to know who they are working with, especially since they will fund your vision.

Make sure to present your key team members’ accomplishments in your company. 

Disclose your financials

Be open about your financials, especially if your legal and financial team recommends doing so. The information you need to include is your projected gains and losses, intended sources for funds, loans, and many more. 

You should also be clear about your project’s timeline. This will allow them to track how long you plan to accomplish each stage of your goal. 

Have an exit strategy

When writing an investment proposal, you should include information on how investors will get their return. You can also include information on potential plans for an acquisition, going for an IPO, or selling out to a buyer. 

Identify your monetization plans

Also, remember to include your monetization plans in the proposal. Remember to include your operating margins so you can be clear about your plans for your investors.

Know your challenges and risks

Every venture has its own challenges and risks. It’s important that you acknowledge what these are early on so you can prepare for competitive strategies to overcome them. 

Use Fill for Your Investment Proposal

Having knowledge on how to create investment proposal can be a big help to any startup owner. But if you’re pressed for time, you can use Fill’s investment proposal template. The site also allows you to collaborate with other members of your team without needing to be in one location.

Check out our template gallery by registering for a free account. You’ll easily find the template you need for your startup.

Andria Pacina

Andria is a seasoned content writer, specializing in document management solutions and HIPAA compliance, providing valuable insights for businesses and professionals alike.

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