1. Creating a Compelling and Persuasive Series A Investor Presentation
Jaine Lucas
Ellen Weber

2. Early Stage Funding Ecosystem
Credit Cards
FFF
BP Comps, Incubators, Agencies
Angels
VCs

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 programs
Business incubators
IP attorneys, SBA, venture capitalists, big four accounting firms and more
Advisory and consulting firms
Gust

5. Philadelphia Angel Groups

6. State-based Funds

7. Other Early Funders

8. Before getting involved with angels:
Ensure you want a “partner”
Be sure you’re ready to have a Board of Directors
Understand that involving angels means giving up equity
Know 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 focus
Grabs attention early and keeps it by hitting highlights
Leaves the investor eager to know more
What it isn’t
A technology presentation
A sales presentation
An opportunity to “get in the weeds”

10. What’s the problem you are trying to solve
How is the problem currently being solved
Why 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 Slide
Market Opportunity
Product or Service Description
Go to Market Strategy
Management Team
Competition
Intellectual Property
Exit Strategy and Summary
Ask and Use of Funds

13. Executive Summary

14. Connecting to RHV

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 presentation
Ensure a highly professional image – get help if you need it
Talk 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 proposition
Must be compelling and believable
What 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 service
Why and how does it solve the defined problem?
Provide diagrams, photos, videos
Avoid appearing too “emotionally attached” to the product
Don’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 competitors
What 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 cases
What 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 type
Trade secrets, copyrights, trademarks, etc.
IP is an additional security blanket for investors

21. Taking it from idea to market success
Go to Market Strategy
How will you reach target customers and drive revenues?
How will you make money (revenue model)?
Sell product or service direct to customer
License technology
Develop product then sell to competitor
Merger-acquisition
What are the key messages for your target market segments?
Describe marketing and sales plan
What partnerships or alliances are necessary?
Taking it from idea to market success

22. Demonstrate you have the right team to execute!
People
Management Team
List two or three key players: CEO is the focus
List successful exits, impressive affiliations, inventions, discoveries, degrees, etc.
Acknowledge additional key players needed
Advisory Board
List three or four highly impressive members
Round out deficiencies or weaknesses of management team
Notable industry experts, key executives or former key executives in your field/industry
Demonstrate you have the right team to execute!

23. Financials Minimum of three years’ financial projections
2009
2010
2011
2012
2013
Revenues
$ 277
$7,016
$17,299
$28,315
$39,706
Expenses
$1,1418
$4,075
$6,087
$9,178
$11,443
EBITDA
($1,155)
$2,941
$10,252
$19,137
$28,263
Minimum of three years’ financial projections
Revenue, expenses and EBITDA are typical
Chart form is preferred
If 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 team
List current and future asks
How 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 possible
What will be the scenario?
Acquisition by competitor or market leader
IPO (proceed w/ caution!)

26. Special Issues for Therapeutics
Revenue projections are often not relevant for therapeutics – that’s OK
Long and expensive runways to commercialization
Phase 1-3 studies are time and cost intensive
Milestone charts demonstrate an experienced and knowledgeable CEO
Higher failure rate compared to other technology sectors
Show how you can mitigate risk
Think out of the box for investment

27. Summary
Reiterate the market problem your product/service solves and why it represents a disruptive or superior approach
State the large market potential and scalability of your business
Emphasize you have the right team to turn idea into profits
Thank the audience and solicit questions
Put your logo and contact info on it.

28. Valuation. . .
Delay talk about valuation until you’ve sold them on the idea
And never in an investor forum!
Make it a closed door discussion
An entrepreneur’s company is always worth less than he/she thinks
Pre-money/early stage valuations are imprecise and difficult
Few assets, little cash flow
Valuations are complex
Science (formulas, number crunching)
Art (how do you apply the numbers?)

29. Factors Affecting Valuation
Previous Investment
Money required to achieve exit
Time to achieve exit
Market adoption and long-term market potential
Competitive landscape
Financials
Value proposition
Entrepreneurial ecosystem
Investor comfort level