So I've got this 89 page long business plan, full of hard data (information backed by reputable sources, all internet, thus readers are able to easily check the sources). Fully capital+start-up=ready to go. It's for a large commercial farming start-up. $21.1 million dollars faze anyone?
That's actually the problem in this case...the high startup cost. Most VC's don't know anything about agriculture, nor have any interest in investing in it. The ones that do can't fund the high start-up cost to help me breach the barrier to entry, and aren't willing to work with other VC's to raise the amount. Small farms fail...so it's not really fiscally sound to ask for less and buy a smaller farm. In fact, only 45% of small farms ever turn a profit. Commercial farms however tend to be very successful and are basically licenses to print money for their owners.
The start-up has an estimated first year profit of 5-7 million dollars. So the proposal isn't without it's merits. It's obviously a high cost-high reward-low risk venture...but still, theres very few VC's who will even read my proposal.