FREE online courses on Venture Capital Funding - Major Sections of a Business Proposal - Research and development

 

Here you should indicate the amount of money being spent on research and development, the amount that has been spent in the past, and the amount that 

you intend to spend in the future. You should describe precisely what you intend

to accomplish with the funds spent on research and development.

 

It is every Venture Capitalist's nightmare that he will somehow misjudge the entrepreneur and invest in a consummate researcher, rather than an entrepreneur who wants to develop a product. The research entrepreneur will spend millions researching and developing new product variations of the existing product. The Venture Capitalist wants an entrepreneur who can make the transition into a marketing and production company that is trying to make money.

 

Patents and trademarks

Describe in detail any patents or trademarks held by the company or ones it intends to apply for. You can describe why a patent has been granted in order to emphasize the product's uniqueness.

 

At some point in the process you may want to give the Venture Capitalist a copy of your patent so he can read it and determine for himself why you have a unique patent or trademark. You should not put a copy of the trademark in the business plan unless it is key to describing the uniqueness.