In addition, investors seek information regarding projected revenue growth and sustainable operating and cash flow margins. Many plans are overlong, lack marketing content and fail to engage the reader's interest. No attempt to quantify market opportunity. Too many plans fail to provide specific measures of the company's addressable market. The impression this leaves with investors is that management doesn't know the market as well as it should.
Many plans present unrealistic expectations.
Start-up companies must walk before they run. The plan should focus primarily on near- term strategies and growth goals. Venture capitalists are interested in funding companies that have a sustainable competitive advantage and can dominate their market. Selected material copyrighted by identified parties. Red Line Law also provides top quality legal services to the private equity and venture capital sectors.