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How to raise funds for my business?

Venture Capitalists Investing in Seed Rounds: Can someone raise funds without a business plan only by explaining it and how?

  • Answer:

    Quick answer: Yes and no. You need a business plan'(yes) but it's is not the old form of 'business plan' (so no), but instead is a 'pitch deck'.  And you're just presenting it in less detail, and as a guide for directed back-and forth conversation. And while it's actually uncommon to have a "business plan" in the old sense of the word - 20-ish page document with appendices - the data about idea, market, team, and high level plan still need to be presented. Financial details and projections expectations for seed are usually lighter than they were 15+ years ago - Most common for seed seems (now) seems to be some sort of model, often not put into the pitch deck, but available for those who want to see how you're thinking about making a business.  No one actually thinks it's a real budget/projection at seed stage, and you're probably fine w/ 12-24 months, not 36 and certainly not modeling 60 months out. In later stages (A round and later) the financial projection is expected as part of the pitch deck and will include actual historic financial data as well.

Avi Freedman at Quora Visit the source

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Yes it is possible but highly improbable. You need to get your story and concept explained and it is difficult for you to explain and difficult for the investor to understand without the plan on paper. Moreover your own clarity of thought becomes a lot better once you out your story on paper. In case you need help putting it together you can reach out to me on this platform http://www.mentorbay.com

Nitesh Aggarwal

I have seen multiple companies raise small Seed funds with just a great demo and a good pitch deck over the years. However a business plan (a simple one) is generally a much better way to go.

Ben Rodda

With my startup I was able to raise early stage funding from a large investment bank without a formal business plan. What I think is more relevant to your question is, are investors more receptive to short form business plans, in the form of a pitch deck? My experience has shown me that investors recognize that the old long form business plan has become a liability as it drains time from the minder day fast moving startup. You must still have a clearly defined plan but it doesn't need to be layedout over 50 pages. 

Michael Eacrett

I dont think you can raise funds without a business plan until and unless you know someone in Venture capital industry who trusts you and your Idea. even for that you need a small pitch deck.

Bhanu Prasad Madala

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