I have created an online product and would like to take the next steps. I would like to get an investment. Not sure if I should look for an angel investor or venture capitalists. Honestly, I'm still a little confused on what the difference is between the two.
My product has not launched yet due to a couple reasons, but I'm hoping to launch in the next month or so. I do not have a business plan - I conceptualized the idea and have it designed and mostly built. I do not have a business plan - I have never written one and am not sure if it's absolutely necessary. There is a staging link for potential investors to look at and I can speak about my vision for the future. Is this enough or do I need a written plan?
Vehemently disagree with Noam that you should spend anytime on a business plan. You should be spending *all* of your time getting your product to market. The likelihood of any investor investing at the pre-product level is low. While it does happen, it is almost always when investing in a proven entrepreneur or team that is very experienced.
Once your product is in market, you will craft a deck that outlines the usage data in the best possible light to tell the story of how your product can grow into a viable business. At the time you have your product in the market, you can talk to me or a number of great Clarity advisers on what a good deck looks like, but at the moment, you are best served by spending all your energy getting the product shipped and getting some early traction.
Any investor that wants to judge an internet business based on it's business plan is really not an investor an entrepreneur should want investing in their Company. It's a sign of significant inexperience.
Would you give your money to someone who doesn't have a written plan you can look through?
Nobody parts with their money unless they are convinced they will see a return (unless they're a good friend who does you a favor and doesn't care about seeing their money back).
There are more options for financing than Angels and VCs.
You need to first go back to the business modeling drawing board: a good business plan is flexible, short and shows potential investors you have thought about all potential problems and have taken into account all aspects of the business.
Schedule a call with me to get honest and experienced feedback on your funding potential, and start working on your business plan together to maximise your funding potential.
In the second phase, we will also work on your pitch and networking within the different investors communities.