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Investment Proposal Template

An investment proposal is used by various entities once they have reached a project stage requiring outside capital or equity. The investee often promises a return on investment plus other benefits (i.e., equity, recognition).

What Should Be Included (14 Items)

  1. Investment Executive Summary
  2. Introduction To Investment
  3. Market Analysis
  4. Investment Opportunity
  5. Business Model
  6. Financial Projections
  7. Management Team
  8. Competitive Analysis
  9. Risk Factors
  10. Use Of Funds
  11. Exit Strategy
  12. Legal Considerations
  13. Appendices
  14. Contact Information

1. Investment Executive Summary

Start with an overview of the proposed investment’s unique selling points since this opening must attract the investor. Briefly introduce topics like the return on investment (ROI) together with the investment sought as well.

  • Introduction, Investment Opportunity

  • USP, Market Opportunity

  • Financial Highlights, Call To Action

  • Management Team, Funding Request

  • Use Of Funds, Traction, Achievements

2. Introduction To Investment

Introduce the party hoping to obtain an investor while building their credentials and capabilities. For example, frame its background, current competitive status, mission, and growth potential in an effective sales pitch.

  • Company Overview, Mission

  • Founding Date

  • Ownership Structure

  • Location, Market

  • Legal Status, Achievements

3. Market Analysis

Analyze the current market or industry as well as the target audience for the investment to succeed. Bear in mind, these demographics have a powerful impact on the potential investor; thus, keep this section accurate and positive.

  • Market Overview, Segmentation, Target Market

  • Trends, Dynamics, Competitive Landscape

  • SWOT, Market Entry Strategy, Regulatory Consideration

  • Market Research Data, Market Size, Growth Projections

  • Market Risks, Market Opportunities

4. Investment Opportunity

Explicitly describe the opportunity spurring this proposal by balancing the required investment with the benefits or profits it potentially yields. That is, specifically, name the sought capital and the investment’s ROI.

  • Funding Request, Purpose Of Funds

  • Use Of Proceeds, Investment Type, Investment Terms

  • Objectives, Milestones, Investment Benefits

  • Timeline, Exit Strategy

  • Risk Assessment, ROI

5. Business Model

Discuss the operations and revenue generation of the business requiring this investment. For example, present its distribution channels, its profitability, as well as its sales and marketing plans.

  • Impact On Business Growth, Investor Support

  • ROI, Equity Ownership, Voting Rights, Social Impacts

  • Dividend Payments, Preferred Terms, Tax Benefits

  • Exit Opportunities, Risk Mitigation, Legal Considerations

  • Use Of Funds, Competitive Advantage, Transparency

6. Financial Projections

Present the revenue forecasts for the investment as well as its expense estimates. In essence, provide an extensive discussion of its financial performance projections.

  • Revenue Projections, Sales Assumptions, Scenarios

  • EBITDA, Sensitivity Analysis, Assumptions, Risks

  • Net Profit (Net Income Or Earnings)

  •  Balance Sheet, Historical Data, Cost Of Goods Sold (COGS)

  • Financial Ratios, Break-Even Analysis

7. Management Team

Introduce the team managing the investment significantly building their qualifications and experience. Additionally, dispense the team’s structure and roles.

  • Executive Team Overview, Professional Experience

  • Biographies, Backgrounds, Industry Expertise

  • Testimonials, Track Records, Roles

  • Team Dynamics, Dedication, Past Success Stories

  • Continued Development, Advisors, Contace Material

8. Competitive Analysis

Provide the SWOT analysis (strengths, weaknesses, opportunities, threats) defining the investment since every investor will seek this information. Additionally, list the company’s competitors with a comparison to the investee company.

  • Market Share, Positioning, SWOT Analysis

  • Market Penetration, Pricing Strategy, Customer Feedback

  • Product/Service Comparisons, Risks, Mitigation

  • Customer Acquisition, Marketing Strategy

  • Barriers, Distribution Channels, Market Trends

9. Risk Factors

Identify every risk to the profitability of the investment together with the safeguards in place. That is, fully lay out the contingencies and mitigation plan in place for every possible risk to the investment.

  • Risk Identification, Market, Operational, Financial Risks

  • Regulatory Compliance, Team/Human Resources

  • Product/Services, Cybersecurity, Intellectual Property

  • Data Privace, Geopolitical, Global, Natural Disasters

  • Probability Severity, Unresolved Issues, Investor Impact

10. Use Of Funds

Spell out how the investment capital or equity will be used for the investment in detail. Significantly focus on a full discussion regarding the ROI for this opportunity.

  • Total Funding Amount, Itemized Allocation

  • Working Capital, Reserves, Expenditure (CapEx)

  • Innovation, Product Development, Marketing, Expansion

  • Operational Expenses, Scaling, Expantion, Investor Benefits

  • Visual Aids, Regulatory Compliance, Debt Repayment

11. Exit Strategy

Provide the exit strategies in place, such as buybacks or initial public offerings (IPO). Equally important, describe the manner and schedule by which the investor can expect to realize their ROI.

  • Overview, Primary Exit Strategy, Secondary Exit Strategies

  • Exiting Timeline, Triggers, Negotiation Process

  • Investor Returns, Proceed Distribution, Investors Role

  • Consent, Valuation, Pricing, Investor Interests

  • Communication Plan, Risk Contingencies

12. Legal Considerations

Fully disclose the legal information (i.e., security laws) governing the investment. Additionally, enclose a copy of every such document, such as required licenses, permits, and proofs of compliance.

  • Regulatory Framework, Compliance Assurance

  • Environmental Regulations, Labor And Employment Laws

  • Contractual Agreements, Litigation And Disputes

  • Intellectual Property Protections, Data Privacy And Security

  • Legal Counsel, Insurance Cover, Risks, Mitigation, Reporting

13. Appendices

Read through the above proposal, then combine all the remaining attachments in this section accordingly. For example, oversized documents such as media, blueprints, and patents can all be gathered in the appendices section.

  • Financial Statements, Market Research, References, Endorsements

  • Pro Forma Financials, Surveys, Product/Service Demos

  • Legal Documents, Customer Testimonials, Letters Of Intent

  • Case Studies, Competitive Analysis, Customer Aquisition Strategy

  • Patents, Intellectual Property, Photos/Visuals, Regulatory Approval

14. Contact Information

Spell out how the investment capital or equity will be used for the investment in detail. Significantly focus on a full discussion regarding the ROI for this opportunity.

  • Company Name, Address, Phone, Fax, Email

  • Websites, Investor Contact Details

  • Management Team Contact Information

  • Legal Counsel/Advisor Contact Material

  • Availability, Estimated Response Times