OCBA How to Pitch Your Company to Investors

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Transcript OCBA How to Pitch Your Company to Investors

How to Pitch Your
Company to Investors
Presented by
Community Capital New York
Hudson River Ventures
Orange County Business Accelerator
July 30, 2014
The Road to Getting Investors For Your
o Find
the investors that will be interested in
your business
o Figure out how to get appointments
o Create the Winning Pitch
o Know What You Need and Keep that Clear as
You Negotiate
Angel or Venture Capital?
Angel Capital
Wealthy Individuals Investing their Own Individually
Earned Funds
Want to Invest in Early Stage (Start-Up)
Expect 20-25% ROI
Can serve as Advisors
Usually Invest $25K - $100K
Venture Capital
Corporate Entities using funds from other investors
Want Business to be Underway – Needing Money to
Scale – Must Have Revenue
Expect High ROI
Focus on Specific Industries – Biotech
$500K – to an average of $6 Million
Lots of Due Diligence and oversight (Plant someone in
your Business)
Find them!!!!!
Figure out what you need and be realistic – You
get one shot
o Look in the network of people you know and
who they know
o Talk to people who have done this before –
either gotten money or invested
o Get introduced – VERY VALUABLE
o Try to research VC’s who invested in your
specific industry
o If Angel – think local
o When turned down, ask why and who else they
might suggest
o Persevere
How to Get Appointments
Introductions are the Best Way
Search all Social Networks (Online and
Offline ones)
o Identify the Firms and then search to see if
you know anyone inside the firm (LinkedIn
and Beyond)
o Warm up a cold Introduction
o Avoid coming across like a salesperson
o No carpet bombing
o Keep at it
You’re Ready for the Pitch
It All Has to Start With:
“We are here today seeking X amount of capital to
grow (launch) “the name of the business”.
Get your expectation right out in front – and
own it!!
Format of Your Pitch
o What does your business do?
o What problem are you addressing/solving?
o How would our community/city/world benefit
your product/service is successful?
o Describe your Market (show that this is a large
attractive market with lots of opportunity)
o Size and trends
Time Limit – Up to 1 minute
Format of Your Pitch
o Describe the competitive advantage:
o Why is your product better
o How does it compare to the next best product
o Description the business
o Sales over the last few years (if applicable)
o Margin and Profit
o Forecast for the next three years
o Management and Key Advisors
o Who is on the team
o Each team members’ specific titles/role/experience and why this team
can make this business grow/thrive
o Are you looking for management talent and advisors? Specifically?
Time Limit – up to 2 minutes
Format of Your Pitch
o Describe the challenge and opportunity
o With $100K ($200K, $6 million) we would be able to grow the business
by x amount or %
o Include what you are going to do with the money
o The opportunity: An investor putting $100K ($200K,$ 6 million) in to the
business now could get a return of x% over the next three years
o Summarize
o Why should people invest their $$$ and time in your business?
o Restate 3 facts you want the investors to remember
o We are growing at x% a year
o We are sold in Walmart, Petco, Target
o We serve the senior population which is growing at 20% each year
o Questions
Time Limit – 1 minute
Keep in Mind
o Start off strong
o Be Interesting and Authentic – Use Plain Language
o Know your audience
o Keep it Conversational
o Tell – Don’t Sell
o Be excited about everything you say