Regardless of whether you are raising seed capital, angel funding of venture capital financing, you will need to build an investor presentation to tell your story. Depending upon what type of investment you are looking to raise the corresponding content that you present will vary. However, there is a fundamental set of information that is required for any investor and that has been summarized here.
Investor Presentation – Executive Summary
The executive summary is the first slide, a nontechnical 50’000 foot summary that states everything that is truly important about the Company. This slide needs to make an immediate impact by clearly stating the nature of the business, why it is a unique opportunity and the type of financing you want.
Investor Presentation – Mission
A mission statement describes what the company is going to do for the next 6-12. It’s best to use objective, quantifiable information to detail:
- Key market – who is your target client/customer? (demographic information for company and title/role for decision maker approver, influencer and recommender)
- Contribution – what product or service do you provide and what business problem does it solve?
- Distinction – are there any other solutions on the market today and what makes your product or service unique?
Investor Presentation – Go-to-Market Strategy
Go-to-Market Strategy is focused on how the organization will put offerings into the market to reach market penetration, revenue and profitability expectations. This charter is a superset of marketing strategy as it impacts all functions within an organization with the goal of preparing the entire company for market success. Another key point to stress is that G0-to-Market Strategy is not an event, i.e., a product launch. GTM strategy is focused on the entire product lifecycle—from concept to grave.
Investor Presentation – Market Pain and Solution
What market pain (problem) is addressed? Why is a solution needed? How big is the market? At what stage of the product life cycle is the market? What product extensions can be offered? What new markets could be entered after the initial beachhead is penetrated?
Target markets should be segmented to show the, addressable market, served market, target market and beach head. The size, growth rate and competition for each market should also be summarized. There is also a geographical component that should be addressed: US, Canada, Latin America, Europe and Asia. Typically, US based companies are expected to penetrate the US first and then expand.
Investor Presentation – Management Team
List the management team and describe why each is the right choice (years of experience, industry knowledge, thought leader, track record of success). Highlight executive experiences at prior companies during a similar growth stage ($0-10M). Be sure to state why this team will succeed now and why they will take the business to the next level?
Investor Presentation – Achievements and Assets
This would be the company’s timeline (from start throughout the current year) and a description of key achievements by date. It is useful to note the importance of each milestone in bullet format.
Investor Presentation – Customers and/or Partners
Document key customers to date and highlight key customers (largest deal, most strategic, referenceable, etc.). It is also useful to segment customers by industry, product purchased, usage and note the impact on the business the solution is accountable for. Also note who are the current or potential partners and what role they will play for the company- delivery or enablement.
Investor Presentation – Competition
Who are your key competitors? There is always competition. A company may choose to try and build a solution in-house, try an alternative approach or not make a decision and that is competition. On the other end of the spectrum, a company may be entering into an established market by disrupting a mature market to create a new market segment. The key is to focus on what you do better than anyone else and to acknowledge the situations that you should walk away from. It’s important to state the sustainable competitive advantage that will protect your company from existing or future competitive products? This could be IP, technology or people.
Investor Presentation – Technology and IP
From a technical point of view, it is important to discuss the technology. Why is it better, why is it sustainable and will customers “get it”. And, what intellectual property protection is in place today to protect patents and trade secrets?
It is important to have a detailed description of the business model. Ideally, this will include and eco-system that shows the interrelatedness of the company, customers, partners, channels, activities, revenue, costs, etc. Document how you attract, close and retain customers in a managed, repeatable process, in a cost effective manner.
Financial projections (Profit & Loss and Cash Flow) are best made with a one-page spreadsheet that includes quarterly and annual totals. Typically, projections should be made for at least 3 years but 5 years is preferred–obviously, accuracy decreases with time. What is critical are the assumptions, level of detail and reasonableness that is reflected in the plan. Fundraising It is critical to state what investment is required at this time, how that money will be used and what will be given in return. Tie the investment back to deliverables on a timeline. The investment request should be sufficient to achieve the milestones and carry the company to the next round of funding. This time horizon could vary from months to a few years.
The last slide should include “The Ask”, “Thank You” and complete contact information.
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