What Do Investors Look For In A Startup Business Plan?





Business Plan, Startup, Business Angels, Venture Capital, Entrepreneurship


Objective: To synthesize the information that private investors favor in the business plan of a startup. Discuss the preferences that different types of investors have regarding the elements that should compose a business plan and compare their approaches to that plan.

Methodology/Approach: Based on an extensive online search of terms such as business plan, startup, venture capital, entrepreneurship, business angels, we identify and analyze the relevant scientific papers published on the subject, with emphasis on two types of investors, business angels and venture capital companies.

Main results: In general, both types of investors seek similar information and follow similar decision processes. However, the literature suggests that business angels have a less-structured investment decision process and attach greater importance to information about the entrepreneurial team, while venture capital companies stand out in the relevance given to the market in which the business operates.

Theoretical/methodological contributions: A comparative overview of the positive and negative aspects of business angels and venture capital companies in startup business plans.

Relevance/Originality: The business plan is the essential element of planning and communication of the business idea, so matching the informational expectations of potential investors is a contribution to the success in obtaining financing, which is particularly relevant in the case of young businesses with a reduced (or non-existent) track record in the market.


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How to Cite

Geraldo, J. V., & Gama, P. M. (2019). What Do Investors Look For In A Startup Business Plan?. Iberoamerican Journal of Entrepreneurship and Small Business, 8(3), 231–255. https://doi.org/10.14211/regepe.v8i3.1365