An investment proposal letter is a letter written by an entrepreneur or a company to invite individuals or organizations to invest in a new business enterprise or venture. The letter helps you make that first impression, upon which the future of your venture will depend. So the letter should be drafted carefully, keeping in mind the receiver of your letter, their interests, and your needs. An Investment Proposal Letter can be described as a summarized version of the company’s future business plan, written in the form of a letter.
The letter is written in a formal tone like other business letters. One should make sure that the receiver gets all the necessary details regarding the venture from the letter. The letter should address all the concerns the investor is likely to have. It should also cover all the benefits the investor would receive from investing in the venture so that he/she/they might get interested and would want to invest in the venture.
Tips on writing an Investment Proposal Letter
- First and foremost, the letter should be brief, precise, and to the point. Investors wouldn’t have time to read long, confusing letters.
- You should mention at the beginning itself the sector of your venture.
- The content should be written in such a way that it instills confidence about the venture in the investor.
- Avoid using business jargon. Try to convey the contents in simple language.
- You should mention how the investment would be channelized.
- Avoid the use of abbreviations as far as possible.
- If possible, try to provide the investor with details about his returns.
Investment Proposal Letter Template
Use our free Investment Proposal Letter to help you get started. If you need additional help or more examples, check out some of the sample letters below.
From,
__________
__________
__________
__________
Date: _____ (Date on Which Letter is Written)
To,
__________
__________
__________
__________
Subject:
Dear ______(Sir or Madam),
As you know we, __________ (your company’s name) ,are an established name in the __________ (your current sector). On behalf of __________ (your company’s name), I would like to inform you that we are getting into a new venture __________ (name of your venture). Being the current market leader we feel this the best time to indulge in new ventures. It is with immense pleasure that we invite you to be a part of this venture by investing in our new venture.
With __________(your new venture) we aim to provide the customers __________( what the venture offers). We hope to tackle the issue of __________(if your venture addresses some issue) with our initiative. We have on board people who have years of experience in the field. We have also hired a bunch of freshers who seems very passionate about this venture. Your investment will be used for __________. ( how you would channelize the money). We propose to provide our investors with a __% ( expected return) Return on Investment (ROI)
We understand that __________(prospective investor) is one of the most reputed and respectable investors of the time. Investing with us will only help you grow both regarding reputation and financial aspects. Attached is our business proposal. More details will be available upon request. You can contact us at – 0091xxxxxxx( contact number) or xyz@mail.com(your email id).
Thanking You,
Yours truly,
___________
(Name and Signature)
Sample Letter
From,
RD Group of Companies,
Navi Mumbai,
Maharashtra,
India.
16 March 2017
To,
MC Investors,
Andheri West,
Maharashtra,
India.
Subject: Investment Proposal
Dear Sir/Ma’am,
As you know, RGD Group of Companies, are an established name in the Agricultural Machinery sector. On behalf of the company, I would like to inform you that we are stepping onto a new venture, ‘RGD Organic Fertilisers.’ Being the current market leader, we feel this the best time to indulge in new ventures. It is with immense pleasure that we invite you to be a part of this venture by investing in our new venture.
With RGD Organic Fertilisers, we aim to provide the customers, both small-scale and large-scale farmers, an alternative to chemical fertilizers. With this initiative, we hope to tackle the issue of poisonous vegetables that are adversely affecting our health with our initiative. We have on board people who have years of experience in the field. Your investment will be mainly used for marketing the product. We propose to provide our investors with a 10% Return on Investment (ROI).
We understand that MC Investors is one of the most reputed and respectable investors of the time. Investing with us will only help you grow both regarding reputation and financial aspects. Attached is our business proposal. More details will be available upon request. You can contact us at – 00911258496582 or rgfertilisers@gmail.com.
Thanking You,
Yours truly,
P.V Raman,
Manager, RD Group of Companies.
Email Format
The following is the Email Format that should be followed while writing an Investment Proposal Letter.
To: name@email.com
From: name@email.com
SUBJECT: Investment Proposal Letter.
Dear Mr./Ms/Mrs.______(Name of the recipient),
We,__________ (your company’s name) have established ourselves as a leading brand in the __________ (your current sector). Being the current market leader, we feel this the best time to indulge in new ventures. On behalf of the company, I would like to inform you that we are stepping onto a new venture __________ (name of your venture). It is with immense pleasure that we invite you to be a part of this venture by investing in our new venture.
With __________(your new venture) we aim to provide the customers __________( what the venture offers). We hope to tackle the issue of __________(if your venture addresses some issue) with our initiative. We have on board people who have years of experience in the field. We believe our workforce deserves the best. Your investment will be used for the payment of their salaries. We expect to provide our investors with a __% ( return) Return on Investment (ROI).
We understand that you are one of the most reputed and respectable investors of the time. Investing with us will only help you grow both regarding reputation and financial aspects. Attached is our business proposal. More details will be available upon request.
Sincerely,
_________
(Name of the Sender)
(Name of the organization)