Concept of Investment - PowerPoint

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					Presenting a company concept
 as an investment opportunity

           Length and Detail:
  Tailor level of detail to time available
1. 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
2. Written or Oral Executive Summary
    (3-10 minute pitch or 3-5 pages )
3. Meeting with an investment committee in the
    office of a VC or bank (15-30 minute pitch)
                                              Page 2
         Investors need clear,
          credible information

Cover only the most important points.
(Leave the details for the full Business Plan)

                                                 Page 3
       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”
                          Your logo here
                                           Page 4
Customer Pain and Your Solution

   Describe what creates the demand for
   your solution:
     “Pain” and/or
     High cost of alternatives

   Explain the “value-proposition”

                                          Page 5
Product Development Stage
What work remains before you can
start mass producing and selling
   Product development time-line
   Identify major development risks or
   Provide estimated time and cost to
   bring product to market

                                         Page 6
        2. POTENTIAL
Market Niche and Sales Potential
 Market Niche: Define the characteristics of
 the companies or consumers that need
 your solution – your
 Document the number of prospects that
 have the need.
 (Not based on world census numbers.)
 Growth: If the market is growing explain
 why                                           Page 7
 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.
                                                     Page 8
If you rely on indirect channels such as
retailers or catalog companies, explain:

  Your approach to reaching
  Whose responsibility it is to raise
  awareness and generate demand
  among end-customers?
  Who provides pre- and post-sales

                                           Page 9
    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

                                             Page 10
     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

                                                 Page 11
       4. PEOPLE
  The 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?
                                              Page 12
Board of Directors or Advisors

 Indicate if you have a BOD and/or
 Highlight members that have particular
 strengths, renown, or connections in
 your industry

                                          Page 13
                  5. PROFIT
           Projected Financials
                       Year 1   Year 2   Year 5
Units Shipped
- Cost of Goods Sold
= Gross Profit
- Overhead

   Explain “dramatic” numbers, such as:
     “Hockey stick” growth
     Unprecedented margins
                                                  Page 14
The Ask: Requested Funding

 How much capital do you need?

 How will you use these funds to
 grow the company?

                                   Page 15
         Exit Strategy
 (Equity investors will want an exit)

If you anticipate being acquired…
  Identify two or three likely buyers
  Explain why they would be
  Cite price of recent acquisitions of
  comparable companies
Describe any relationships you already
have with potential acquirers
                                         Page 16
    Answering Questions

Prepare answers to likely questions
Memorize statistics and numbers
Be open to advice and criticism
from investors

                                      Page 17

        Page 18
Delivering the Presentation
Grab attention
Lead with strongest suit
… but do not make unsupportable claims
Demonstrate control and leadership
Let your passion and confidence show
Stay within the allotted time

                                     Page 19

Slides should offer evidence to support
or supplement oral argument
Put a sales message in title

                               Your logo here
                                                Page 20
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)

                                          Page 21
14 point
18 point
20 point
24 point
28 point
32 point
36 point
44 point
48 point
52 point Arial

                 Page 22
     Charts and Graphs
One idea per slide
Content should be grasped in two seconds
Labels must be legible

                                      Page 23
         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 …..

                                                  Page 24
      April 7, 2009   Mike Roer

Description: Concept of Investment document sample