Thursday, May 14, 2009

Newsflash: VCs Ignore Business Plans

According to this recent article in the New York Times, venture capitalists care not for business plans, but rather are looking “for 'market validation,' hard evidence that the entrepreneur has actually sold his product or at least lined up enthusiastic potential customers.” And they don't want a 50-page presentation; they want a couple powerpoint slides or a short conversation.

So does this mean MBA students all over the world can ignore business plan competitions, stop wasting time on business plan class assignments, and refocus their energies on developing and implementing go-to-market strategies for new businesses? (I hope so.)

1 comment:

D. G. said...

Lots of non-entrepreneurial students do the business plan classes because it is the only thing at B-School that brings all your learnings from different classes together.

Writing a business plan forces you to think through some aspects of your business, but I agree - it is not essential.

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