Massachusetts Small Business Development Center Network
Northeast Regional Office


Venture Capital Executive Summary Outline

 


An Executive Summary should be no more than two pages long and should include the following information which is the essential material taken from the completed business plan. It’s the first item that a busy prospective investor will look for and read to get an idea of the investment opportunity. The purpose of the executive summary is to capture the interest of a potential investor and get a meeting with him or her!

Company Name:

Opportunity: Briefly describe the general nature of your company. From this section the investor must be convinced of the potential success of the business.

Products/Service/Industry: Convey to the investor that the company and product truly fill an unmet need in the marketplace. The characteristics that set the product and company apart from the competition need to be identified (competitive advantage). The industry and trends in which the company operates should be identified. Also include analysts’ predictions for your industry or market segment.

Target markets: Provide a clear description of your target market and any market segments that may exist within that market. Include potential market size and growth rate.

Sales Strategy: Provide a short summary of your company’s strategy for bringing your product/service to market. Indicate specific steps that will be undertaken in this process. Indicate which channels will be used to deliver your products/service to your target markets (i.e. website, direct sales force, VARs, channel partners, etc...) Also, mention your revenue model in this section.

Competition: List any current or potential direct and indirect competition. Briefly describe the competitive outlook and dynamics of the relevant market in which you will operate. Highlight current and future barriers to entry.

Technologies/Special Know-how: In this section, highlight whatever aspects of your product that may be protected by current IP or patent law. Provide evidence of how your offerings are different from the competition.

Outlook / Benchmarks: Describe the major events that will take place in the short and long-term future (i.e. product launch, acquisition of first customer, milestones for customer base growth or sales growth).

Exit Strategy: Describe investors’ potential exit strategy.

Financial Performance: This section should highlight revenues, gross profit margins and income, both historical and projected for five years.

Management: Include qualifications and experience of current and/or to be hired key personnel, e.g. Chief Executive Officer (CEO), Vice President Sales & Marketing, VP Product Development, Chief Technology Officer (CTO), Chief Financial Officer (CFO), etc.

Current Investors: List private investors (angels), investment banks, venture capitalists and/or personal funds. Give amounts and percentage ownership.

Financing: Describe current financing or banking arrangements, if any. Also include amount of financing sought and proposed use of funds.
Corporate Information: Address, contact information, and, when applicable, number of employees, website, law firm(s), and accountant.