Presenting a company concept as an investment opportunity

1. Presenting a company concept as an investment opportunity • CONTENT • Product • Potential • Positioning • People • Profit • STYLE

2. Length and Detail: Tailor level of detail to time available • Elevator Pitch (10-60 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. 1. PRODUCT Position the company to create a framework for your presentation. • Your name • Company name • What you do: “Carnage Company manufactures non-flammable seats for automobiles and aircraft” Page 4

5. Customer Pain and Your Solution • Describe what creates the demand for your solution: • “Pain” and/or • High cost of alternatives • Explain the “value-proposition”

6. Product Development Stage • What work remains before you can start mass producing and selling product? • Product development time-line • Identify major development risks or challenges • Provide estimated time and cost to bring product to market

7. 2. POTENTIALMarket Niche and Sales Potential • Market Niche: Define the characteristics of the companies or consumers that need your solution – your • Documentthe numberof prospects that have the need. (Not based on world census numbers.) • Growth: If the market is growing explain 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 • Distribution – How will product get into hands of customer? Who will collect payment? • Support – To help customers understand product during installation and use.

9. If you rely on indirect channels such as retailers or catalog companies, 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. 3. POSITIONING Versus Alternatives • Address Inertia • How will you get customers to change what they are using now? • Big Dogs – How will well-known companies with established relationships with your target customers react to your company?

11. Barriers to Competition • Patents – Received, pending. US and abroad. • Black box technologies – Is your technology difficult 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. 4. PEOPLEThe 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?

13. 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

14. 5. PROFITProjected Financials • Explain “dramatic” numbers, such as: • “Hockey stick” growth • Unprecedented margins

15. The Ask: Requested Funding • How much capital do you need? • How will you use these funds to grow the company?

16. Exit Strategy (Equity investors will want an exit) If you anticipate being acquired… Identify two or three likely buyers Explain why they would be interested Cite price of recent acquisitions of comparable companies Describe any relationships you already have with potential acquirers Page 16

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

18. STYLE

19. Delivering the Presentation • Grab attention • Lead with strongest suit • … but do not make unsupportable claims • Be • Demonstrate control and leadership • Let your passion and confidence show • Stay within the allotted time Memorable!

20. Slides • Slides should offer evidence to support or supplement oral argument • Put a sales message in title Your logo here

21. Legibility • Short words and phrases • 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 • Content should be grasped in two seconds • Labels must be legible

24. 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 ….. Enthusiasm!

25. April 7, 2009 Mike Roer Roer@EntrepreneurshipFoundation.org