How Does an Investor Make Money?
One of the biggest challenges for the investor pitch is showing the investors how they will make money. Most entrepreneurs fail to show this in an easily understandable fashion when pitching to http://conceptequity.com/BNCVCGroup.htm.
On 1/5/10, I put together a financial summary (https://conceptequity.sharefile.com/d-s0feaaf368864535b) to help entrepreneurs include this in their pitch and take out some of the mystery. There are certainly special circumstances that will change for each business, so this model should be used as an example, not as the final result.
Implicit in the model is an estimate for valuation. This will vary by company. Some experts recommend that the entrepreneur tell investors that the valuation is negotiable because of the uncertainty the value of an early stage company. If you share this view, do not complete the multiple or show the ownership percentage.