Presenting a company concept as an investment opportunity

1. Presenting a company concept as an investment opportunity

2. Length and Detail: Tailor to time available • Elevator Pitch (30 seconds). • Think of it like a magazine ad • Focus on a crisp description of the business and value proposition for investor • Written or Oral Executive Summary (3-10 minute pitch or 3-5 pages ) • Meeting with an investment committee in the office of a VC or bank (15-30 minute pitch)

3. CONTENT Investors need clear, compelling, credible information • Cover only the most important points. (Leave the details for the full Business Plan)

4. Overview • Customer Pain and Your Solution • Market Niche and Sales Potential • Marketing and Sales Strategy • Competitive Analysis • Product Development Stage • Management Team • Projected Financials • Requested Funding and Use of Funds • Exit Strategy

5. Business Positioning • Position the company to create a framework for balance of information. • Your name • Company name • What you do: “Carnage Company manufactures non-flammable seats for automobiles and aircraft”

6. Market Opportunity:Customer Pain and Your Solution • Describe what creates the demand for your solution: the “Pain” • Explain the “value-proposition”

7. Market Niche and Sales Potential • Define the characteristics of the companies or consumers that need your solution – your Market Niche • Quantify the opportunity… number of prospects that have the need • Explain how the market is growing and why

8. Marketing and Sales Strategy Briefly explain the selling cycle: how you propose to reach your target audience. • Marketing – To raise customer awareness of your product and stimulate interest • Sales – To give decision makers a convenient way to learn details and place order • Support – To help customers understand product before during installation and use.

9. If you rely on indirect channels, explain: • Your approach to reaching intermediaries • Whose responsibility it is to raise awareness and generate demand among end-customers? • Who provides pre- and post-sales support?

10. Competitive Positioning • Address barriers to adoption. How you propose to win against these: • Inertia – How will you get customers to change what they are using / doing? • Big Dogs – How will well-known companies with established relationships with your target customers react to your company? • Also describe your Barriers to Competition

11. Barriers to Competition • Patents – Received, pending. US and abroad. • Black box technologies – Is your technology impossible to reverse engineer? • Lead time advantage – Would it take a competitor years to reproduce your technology? • Major Customers locked in with exclusive long-term agreements • Critical suppliers locked in

12. Product Development • What work remains before you can start mass producing and selling product? • Product development time-line • Identify major development risks or challenges • Provide estimated levels of effort and/or costs still required to bring product to market

13. Management Team • CEO – Prior entrepreneurial experience in similar business • CTO – Demonstrated know-how of technology • CMO – Proven knowledge of the target markets; strong relationships with buyers • CFO – Prior profitable experience for investors Who is full-time, part-time? On the sidelines awaiting funding?

14. Board of Directors or Advisors • Indicate if you have a BOD and/or BOA • Highlight members that have particular strengths, renown, or connections in your industry

15. Projected Financials • Explain “dramatic” numbers, such as: • “Hockey stick” growth • Unprecedented margins • “Goodness” is positive cash flow in 6-12 months

16. Requested Funding /Use of Funds • How much capital do you need? • How will you use these funds to grow the company?

17. Exit Strategy If you anticipate being acquired… Identify the two or three most likely buyers Explain why they would be interested Describe recent acquisitions of comparable companies and the deal value Describe any relationships you already have with potential acquirers Page 17

18. B. THE MEDIUM(How you say it)

19. To Pitch Effectively • Grab attention • Lead with strongest suit • … But do not make unsupportable claims • Be • Stay within the allotted time Memorable!

20. Presentation Style • Demonstrate control and leadership • Let your passion and confidence show • No whining

21. Legibility of Slides • Short words and phrases • 7 by 7 rule • 7 lines, 7 words, no word wrap • Light text on dark background • Audience-friendly text • Arial or Helvetica • 24 pts. or greater (this is 32 point)

22. 14 point 18 point 20 point 24 point 28 point 32 point 36 point 44 point 48 point 52 point Arial

23. Charts and Graphs • One idea per slide • Slide content should be grasped in two seconds • Slides should support/supplement oral argument • Put a sales message in title • Labels must be legible • No unnecessary detail or graphics – but add your logo to all slides

24. Presentation Style • Demonstrate control and leadership • Let your passion and confidence show • Do not make claims you can’t support

25. And Finally …. • Rehearse, Rehearse, Rehearse…It does make a difference • Videotape yourself • Practice in front of anyone that will listen: friends, family, your management team, the dog • Practice until smooth and polished; easy to listen to • And remember …..

27. C. EXHIBITING The name of the game is making lots of contacts

28. Exhibit Space • Don’t sit • Keep uncluttered • Bring a box of business cards • Ensure someone is always on duty • Dress for success

29. Don’t bring your business plan…save that for the meeting • Do bring copies of your “beefed up” presentation as your handout or other marketing materials • Don’t spend time doing demos…save that for the meeting • Don’t talk too much…it gets annoying

30. Answering Questions • Prepare answers to likely questions • Memorize statistics and numbers • Be open to advice and criticism from investors