How to Prepare an Effective Investor Pitch
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Prepare an Effective Investor Pitch Neil Davis TEDCO September 17, 2015
Transcript of How to Prepare an Effective Investor Pitch
Prepare an Effective Investor Pitch
Neil DavisTEDCO
September 17, 2015
The Basics11 slides; 8 minutes (adjust as allowed)Short bullets, no paragraphs; Keep it simple!30 pt. font is ideal, 22 pt. minimumUse consistent theme, font & color.Include your logo on each slideDo a final on-screen checkGoal – get to the next level!
Slide 1: Title
Company nameYour name, title, contact info.Web siteTry to tell a short story about your venture
For example, “You may be wondering why my Company is named NORA LLC”.
For example, “Think of us as the EZPass of nutrition”.
Slide 2: Problem
Describe the “pain” you are addressing.Describe the “pain” in personal terms.Quantify the “pain”.Your goal is to create immediate audience
buy-in!
Slide 3: Solution
Explain how you will alleviate the “pain”. What are you selling? What is your value proposition?
Articulate value proposition thru customer’s eyes. Decrease your customer’s cost (be careful w/ labor) Increase your customer’s sales Increase the satisfaction of your customer’s customers
At this point, audience assumes technology works.
Slide 4: Business Model
How will you make money? Who pays? Payment structure and is it aligned with the customer? Reimbursement codes?
What are your distribution channels? Manufacturing Inventory Warranty
What are your gross margins?
Slide 5: Underlying “Magic”
Describe the technology (“secret sauce”, “magic”, etc.) behind your product or service.
How is your technology protected (patent, speed-to-market, continuous innovation, etc.).
How was your technology acquired (license vs. in-house development)?
How is your technology maintained?
Slide 6: Market & Sales
Market Total market size Addressable market size
Validation Market research to support customer need. Don’t forget the “do nothing” alternative.
How will you reach the customer? Initial launch Sales channels Marketing
Slide 7: Competition
Demonstrate that you know your competition
Your Company Competitor 1 Competitor 2Installed Cost
Operating Cost Speed Waste Safety
Slide 7: Competition
Demonstrate that you know your competition Performance
Your Product
Competitor A
Cost EffectivenessCompetitor B
Competitor C
Slide 8: Projections
Year 1 Year 2 Year 3 Year 4 Year 4
Units 20 40 80 160 320
Revenues 100 200 400 800 1600
COGS (25) (50) (100) (200) (400)
Gross Margin 75 150 300 600 1200
SG&A (150) (200) (250) (300) (350)
EBIT (75) (50) 50 300 850
R&D (100) 0 (500) 0 0
CAPEX (50) 0 0 (150) 0
Begin Cash 0 75 25 75 225
Investment 300 0 500 0 0
End Cash 75 25 75 225 1075
Slide 9: Milestones
Where are you right now?What does the near-term future look like?What will you do with the $ you are trying to raise?
Some presenters creatively combine this information with Slide 8.
Slide 10: Team
Who are the key players? Founders Management Board of Directors Board of Advisors (what do they do?) Investors (if any)
Are there any “rock stars” on the team?
Slide 11: Summary
Contact informationSummarize Investment Thesis
Technology Market Revenue Total raise
Questions?
The Video Presentation
What’s unique about a video pitch? No white – go with pastels. No bold plaids or patterns. No sunglasses or photo-gray lenses. Maximize facial expression. Minimize hand gestures. Practice in front of a mirror.
