Presentation on theme: "Creating a Compelling and Persuasive Series A Investor Presentation"— Presentation transcript:
1 Creating a Compelling and Persuasive Series A Investor Presentation Jaine LucasEllen Weber
2 Early Stage Funding Ecosystem Credit CardsFFFBP Comps, Incubators, AgenciesAngelsVCs
3 Angel Investors Exited entrepreneurs Live in the area Want to invest and help grow companies
4 Where to find us? Networking (AWE, MADV, PSL, PhillyTech Meetup) Universities with strong entrepreneurship programsBusiness incubatorsIP attorneys, SBA, venture capitalists, big four accounting firms and moreAdvisory and consulting firmsGust
8 Before getting involved with angels: Ensure you want a “partner”Be sure you’re ready to have a Board of DirectorsUnderstand that involving angels means giving up equityKnow that your forecasts will be dramatically reforecasted (as will your valuation)Be prepared to deliver monthly financials and strategic updates
9 An Investor Pitch What it is What it isn’t An eight to 12-minute presentation with an investor focusGrabs attention early and keeps it by hitting highlightsLeaves the investor eager to know moreWhat it isn’tA technology presentationA sales presentationAn opportunity to “get in the weeds”
10 What’s the problem you are trying to solve How is the problem currently being solvedWhy are you the team to solve it?
11 What We’ll Want to Know What is the opportunity? How big is it? How do you make money?Do you have proof that customers will buy? Is it essential or a nice-to-have?Can you defend it in the market? What’s the secret sauce?Can you execute? Can you prove it with the management team’s track record?What will you do with our money?
12 Sections and Flow Product or Service Description Market Opportunity Title SlideMarket OpportunityProduct or Service DescriptionGo to Market StrategyManagement TeamCompetitionIntellectual PropertyExit Strategy and SummaryAsk and Use of Funds
15 Good Luck!Ellen Weber, Executive Director 3711 Market Street, 8th Floor Philadelphia, PA 19104
16 Title Slide Include on the slide Talk about… Company name, logo and date of presentationEnsure a highly professional image – get help if you need itTalk about…What your company does (high level)Open with a “wow statement” that commands attention
17 Market/Opportunity What is the problem your product or service solves? How is the market solving the problem currently?Why is your solution superior?What is your value propositionMust be compelling and believableWhat is the target market and size?What segments are you addressing?What are the size of each?Prioritize segments; provide justification
18 Product/Service Description Briefly explain your product or serviceWhy and how does it solve the defined problem?Provide diagrams, photos, videosAvoid appearing too “emotionally attached” to the productDon’t get in the weeds: this is not a sales presentation!
19 Competitive Landscape What are firms and products are providing solutions to the problem?Use pie charts to show market share of competitorsWhat differentiates your product or service?Superior performance, lower cost alternative, lower side effects, etc.How entrenched is the competition?What are their weaknesses?Perceptual maps can help in some casesWhat are the “barriers to entry” for others?
20 Intellectual Property What intellectual property do you have?Do you have a proprietary and defensible position?Mention licensing arrangements, patents filed and what typeTrade secrets, copyrights, trademarks, etc.IP is an additional security blanket for investors
21 Taking it from idea to market success Go to Market StrategyHow will you reach target customers and drive revenues?How will you make money (revenue model)?Sell product or service direct to customerLicense technologyDevelop product then sell to competitorMerger-acquisitionWhat are the key messages for your target market segments?Describe marketing and sales planWhat partnerships or alliances are necessary?Taking it from idea to market success
22 Demonstrate you have the right team to execute! PeopleManagement TeamList two or three key players: CEO is the focusList successful exits, impressive affiliations, inventions, discoveries, degrees, etc.Acknowledge additional key players neededAdvisory BoardList three or four highly impressive membersRound out deficiencies or weaknesses of management teamNotable industry experts, key executives or former key executives in your field/industryDemonstrate you have the right team to execute!
23 Financials Minimum of three years’ financial projections 20092010201120122013Revenues$ 277$7,016$17,299$28,315$39,706Expenses$1,1418$4,075$6,087$9,178$11,443EBITDA($1,155)$2,941$10,252$19,137$28,263Minimum of three years’ financial projectionsRevenue, expenses and EBITDA are typicalChart form is preferredIf you received funding, could you scale faster and become profitable sooner?Be prepared to talk about break even analysis, etc.
24 Funding and Uses How much have you raised to date and from whom? Show founders investment and/or “skin in the game” from management teamList current and future asksHow will the funds be used?For therapeutics and medical devices, show clinical trials milestone with needed funding
25 Exit Strategy When will investors receive back their money? What multiples are likely? Are there comparable exits?Provide examples where possibleWhat will be the scenario?Acquisition by competitor or market leaderIPO (proceed w/ caution!)
26 Special Issues for Therapeutics Revenue projections are often not relevant for therapeutics – that’s OKLong and expensive runways to commercializationPhase 1-3 studies are time and cost intensiveMilestone charts demonstrate an experienced and knowledgeable CEOHigher failure rate compared to other technology sectorsShow how you can mitigate riskThink out of the box for investment
27 SummaryReiterate the market problem your product/service solves and why it represents a disruptive or superior approachState the large market potential and scalability of your businessEmphasize you have the right team to turn idea into profitsThank the audience and solicit questionsPut your logo and contact info on it.
28 Valuation. . .Delay talk about valuation until you’ve sold them on the ideaAnd never in an investor forum!Make it a closed door discussionAn entrepreneur’s company is always worth less than he/she thinksPre-money/early stage valuations are imprecise and difficultFew assets, little cash flowValuations are complexScience (formulas, number crunching)Art (how do you apply the numbers?)
29 Factors Affecting Valuation Previous InvestmentMoney required to achieve exitTime to achieve exitMarket adoption and long-term market potentialCompetitive landscapeFinancialsValue propositionEntrepreneurial ecosystemInvestor comfort level