Investor Proposal Templates

An investor or investment proposal is a document written by an individual or an organization in which the investment is sought from an individual, financial institution or an organization. The person seeking the investment could be an entrepreneur starting a new business or a company initiating a new project or expanding the existing business. In this proposal, the viability of the project is presented to the investor so to woo him and realize the deal.

Capital or money is one of the most important factors, essential for starting and running a project idea. Often, due to lack of capital, many business ideas or projects go down the drain. A company may have expertise in its field but may not have enough capital to go forward with the expansion project so, it would simply leave or delay it till the funds become available.

To seek investment, an investor proposal is prepared to provide all the relevant details and entice the investor toward the project or business idea. As it lays the basis for a successful or unsuccessful deal, it should be prepared carefully, while considering the following:

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  • The proposal should be comprehensive, professional and formal.
  • The writing needs to be persuasive enough for the investors.
  • The feasibility of the project or business idea and its probability of success are important.
  • In this proposal, numbers are the most important details an investor is looking for. All the relevant numbers should be provided as well as they should be captivating for the investor.
  • The appealing budgets, future trends, and predicted figures incline the investor toward the investment.
  • All the benefits for the investor in terms of investment returns should be highlighted.

An investor proposal may vary, in terms of format and details, for different projects or businesses as well as whether the investment is being sought for a new or an existing business. However, generally, the following details are included in all the investor proposals:

  • Executive summary/introduction.
  • Company profile, if applicable.
  • Testimonials, if any.
  • Entrepreneurial idea or business project.
  • The catch in the idea and why it can be a success.
  • Details, including the purpose, timelines, costs, profits, other numbers/figures, etc.
  • Feasibility analysis.
  • Future trends and predictive figures.
  • Required investment amount.
  • Investment packages, if any.
  • Persuasion and non-monetary benefits.
  • Investment returns in numbers.
  • Terms and conditions.

If an investor deems the project worth-investing, he would accept the proposal and enjoy the gains. Else, he would reject the proposal and the entrepreneur needs to seek investment from some other sources. When the required investment money is huge, it is often broken down and sought separately from various investors by preparing different proposals.

A rejected proposal costs an entrepreneur effort, money, time and delays, which reinforces the fact that it should be utilized as a marketing tool and maximum attempts should be made to obtain the investment from the first investor it was pitched to.

Sample Investor Proposal Template

Our Story

[Description and history of the Company]. [Name of Company] was founded in [Year] by [Name(s) of Founders]. The idea of this establishing [Name of Company] was formed after analyzing the pros and cons of [Business Idea].

For the last few years, [Name of Company] has been expanding its reach across the [Associated] industry. We have been able to receive pleasant feedback on this decision.

What we do

[Description of product/services and competitive advantage]. The idea of our main products/services is to provide ease and comfort for the consumers. There are different versions of the product with varying prices which allows us to cater to all types of consumers in the audience. With this type of competitive advantage, we are able to appeal to many consumers in the market.

What we have

[Description of Infrastructure] Our company has been divided into different departments. Each department is responsible for a different aspect of the production of our products/services. Our main power plant is located near the edge of the city to provide easy access to the city. At the same time, there has been enough space provided for the production to process with ease.

Marketing

[Describe the Marketing Plan]. There have been various milestones allocated to the stages of our plan. The milestones will help us to track the process of our proposal and stay in track with the scheduled plans.

Financials

The table below shows the calculations and costs of the project. Small margins have been kept in all calculations made to cover any financial problems that may occur due to internal and external issues.

According to the expected results, the total outcome in the first few months of the product/service launch, [$X] has been calculated as a return. In the later months, an increase is expected due to the change in [Market analysis].

Request

Out of the total cost of the project, that is [$Cost], we are in need of [$XXX]. This investment is to be used for [Where the investment will be used]. We would like to request you for your investment in our project.

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Investor proposal template

Format: MS Word [.doc & .docx] 2007/2010

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