Maybe, but startups should not come into that first meeting with a potential investor with nothing but a nice smile and a firm handshake. The point of a business plan is simply the intellectual exercise of crossing the t's and dotting the i's. No investor really believes that it's a rigid plan, but investors do want to have confidence that you have figured out the moving parts and have a well formed idea of the direction you need to go in. I don't get detailed business plans for any of the deals we look at, but we do expect to see evidence of detailed planning behind the great teams.
According to BusinessWeek's Deal Flow blog, Michael Moritz, a general partner at VC firm Sequoia Capital and an early investor in Google, Yahoo! and Cisco, while speaking at the VentureOne conference in San Francisco told a story about Google that demonstrated why VCs always say they invest in entrepreneurs or ideas--and not business plans.As you might know, Google started out thinking it would