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

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. 

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.