VCs do not approve business plans, they invest in businesses and people.

First read this Mahalo How to article:
http://www.mahalo.com/how-to-receive-venture-capital

You first must realize that venture capital very rarely, if ever comes easily. You first must struggle in your life before you become fortunate to raise your first round of venture capital. Of course this is not always true, but something can't be raised from nothing. You have to come to the venture capitalists with a story, a great vision, or a purpose that you want to change the world, an entrepreneurial passion for something, and have a motivation to build something, or find someone to assist you with building out your idea. You have to "just start," as Seth Sternberg the co-founder of Meebo has said in his audio interview below. Very few can come to a venture capitalist these days with just an idea on a napkin, and raises venture capital anymore. It needs to be an idea, a dream, a vision, a plan, and possibly a team, or motive to build a team. Most importantly, your idea needs a product or service launched publicly, even if it's a simplest version, just start with something! I can tell you from personal experience how important this is, and I'm sure other entrepreneurs can share this with you from their own experience.

Very few, if any venture capitalists today in this economy want to invest in nothing at all. The sad fact of the matter is that some venture capitalists think that a dream idea is really nothing, yet I would say it's more than nothing, it's a dream. I know, I've been there, as I've had exceptional dreams and visions, I've even filed several patents on these ideas and visions, but that's not what venture capitalists always look for.

There are 6 general characteristics that venture capitalists look for when making an investment that are beyond the idea. You Now, this is not true for all investors, as some investors are more idea investors, whereas others are more interested in knowing that the product already makes money, but mostly you have to have good people or a great product to make money. These characteristics are generally true for most.

1. Personalities: Do you click with the investor? Does your personality mirror that of the investor? The investor will be spending a lot of their time with you. Think of it like a marriage in some capacity, as you're partners in your idea, even if the percentages aren't 50/50, which most times they are not, you are going to have to be together with this investor for better or worse. You have no choice but to get along with your investor.

2. Staying Power of TEAM: Realize there is no "I" in team, and as cliche as that must sound, it's true. Your investor wants to see that you can delegate tasks to a team, and can make your idea come to life with the team you have on board, that the team is of quality, they believe in your idea, your vision, and will be there for you, the entrepreneur. Does your team have staying power? Does or will your team put in sweat equity, or work around the clock or over hours to make your idea a success? If your team isn't going to be there in rough times, what will make the investor believe they be there in the good times? It's very true that 90% of ventures are successful because of perspiration rather than inspiration.

3. Ability to Recruit and Attract Team members: Can you attract and recruit quality people to join your team?

4. Handling Risk and Executing Plan: Can you take on risk and handle it? Can you be flexible to change, whether it's change in the competitive landscape, to change in product development? How well can you analyze the current market situation? Can you stick to a plan and execute on it?

5. Communication Skills and Communicating Your Idea/Vision: How well can you communicate your idea? What makes it different from what's already out there? What makes it feasible to be developed or perfected? Is your idea too complex for it to be communicated in a 30 second elevator ride? If so, you need to hone your pitch, and make it clear and concise. You need to make sure your idea is easy enough for you to communicate, and not too complex to execute. Of course anything is possible these days, as long as you communicate it to the right people, and I mean this, as if you're not working with the right people, no matter how well you communicate your idea, it will not come to life. It's your vision, so you have to make sure you communicate it to the right people (not only investors, your customers), clearly and effectively.

6. See the Big Vision or Picture: Do you have a vision or just a idea? Realize the difference. I vision is something you can see in the future, what the company hopes to become. Rather than saying, "I want my company to be the next______" you should say, "I want my company to do ________" For instance, Steve Job's vision for Apple was to "have an Apple on every desk." Do you have this kind of vision for your idea, or is it just an idea? It's also important that you pay attention to details, but let people in your company do this. As the entrepreneur, never lose sight of your vision. A vision is different from a dream. We all have dreams, but very few sit down and write down a vision statement. I think any investor would be impressed if you write down a vision statement for your company in addition to just an idea. If you can picture this vision, then it's likely that someone else can see the same.

Of course there are other things, like does your product or service make money, but that's not the only thing. Guy Kawasaki, the managing director of Garage Technology Ventures once said, "Make Meaning, not Money," yet what he really may be saying is to allow people to find meaning in something that you make, create value for others, and then the money will come to you. It's kind of like the old saying, "If You Do What You Love, the Money Will Follow."

Here are my tips for VCs.

1. You don't always need to raise VC! There are many other routes, find a partner or friend who believes in your idea, friends and family, angel funding, government grants and other grants, and loans. Of course there is also bootstrapping, find some way to bootstrap the business (not saying this is always easy either!)

2. Ask around friends and family if they know VCs and get warm introductions, don't blind email VCs, as the emails info@namefovc.com emails are meant for people like you who have just an idea. VCs are not going to bite without an actual product or a plan. Better you have a product, and then can see your visions with it. It's also best you look locally as those investors in your local area are more prone to listen and work with someone in the area, rather than someone who is in a different time zone or different area.

3. Get out and meet the VCs at events. I met a VC at a coffee shop one day, at an open coffee event. Of course I knew this VC, but I also know a lot of other people know him. If you meet the VC in real life, you have a much better chance and getting their time than if you meet them on the Internet and never talked to them before.

Read the VC Blogs:

Here are some VC Blogs I read and highly recommend:

Fred Wilson
http://www.avc.com

Mark Peter Davis
http://www.markpeterdavis.com

Ask the VC by Brad Feld and
http://www.askthevc.com/blog

I went to the VC Bootcamp in NYC

Read this presentation below, it will help you with your question and exactly how to go about VC!

http://www.markpeterdavis.com/getventure/2009/06/vc-bootcamp-livestream.html

Here's a list of notable VC firms, however, I highly recommend not contacting any of them, unless you have a warm introduction, or a way to connect with someone who works with them as mentioned in the above VC Bootcamp reference.
http://en.wikipedia.org/wiki/List_of_venture_capital_firms

Here's another list of the "Top 100 Venture Capital Firms" for early stage companies. As mentioned above, I highly recommend you think about how you contact these firms.
http://www.entrepreneur.com/vc100/stage/early.html

Listen to this excellent podcast from Seth Sternberg, a Co-Founder of Meebo. Seth is an entrepreneur I have asked a few questions to about VC funding, and has even written an excellent blog post on Meebo's blog on raising VC funding.

http://mstories.vo.llnwd.net/o1/federated/shell.swf?expID=45d4590d-92b2-4a25-8f9e-1c427eab1830

Always realize VC is not for everyone or every business! Even great venture capitalists such as Fred Wilson will tell you this, that VC is not for every entrepreneur or industry (some business industries are less prevalent to raising VC funding). Fred Wilson even presented on this somewhere, possibly can be found on his blog. It's also not the first place you should go looking. First you need to commit yourself to the idea, and put in your own money first, then you can possibly seek out friends and family or an angel round before you go the VC route.

Even Mahalo's CEO Jason Calacanis has a great article "Real Entrepreneurs Don't Raise Venture Capital"

http://calacanis.com/2005/02/09/real-entrepreneurs-dont-raise-venture-capital/

Also, check out some of the videos, they should help you!

Hopefully this helps, and best of luck!

make a good project report
try to make demo first i mean project in small basis
show them growth stats
make a good ppt of project