Transcript WHAT THE COMPANY DOES OR WILL DO

POWERPOINT PRESENTATIONS
FOR INVESTORS
RANDY HARMON
Prepared for the Venture Association of New Jersey’s Maximum
Impact Workshop
April 20, 2004
This presentation was delivered to empower entrepreneurs to
prepare presentations to prospective investors. The slides can be
used as a template by entrepreneurs in preparing their own
presentation. In addition to this free template, those who
purchase our preparation service will receive an instructional
article to guide them in preparing their draft presentation
POWERPOINT SLIDES ARE LIKE
BUILDING BLOCKS
-You build the investor’s understanding of the
BUSINESS OPPORTUNITY block by block
-The blocks should be arranged so as to tell a
COMPELLING story
-The presentation must flow smoothly from slide
to slide
-There is no one correct format
-Make sure you have a near complete set before
you begin “pitching”
WHAT BUSINESS ARE YOU IN?
-What the company does
-What industry you are in
-Customers and markets
MISSION STATEMENT
-What the company aspires to become
WHERE’S THE BEEF?
WHAT’S COMPELLING?
-What unmet need does this fill?
-Why is this important?
-Why will customers care?
-Why should investors care?
MILESTONES
-Significant achievements to date
-You want to be able to
demonstrate that a momentum is
building
WHAT THE COMPANY IS
LOOKING FOR
-USE OF FUNDS
-Can they be staged?
-Tie stages to milestones
COMPANY BACKGROUND
-Founding
-Structure
-Stage of development
-Compelling points regarding origins of
company
MANAGEMENT TEAM
-The less complete your team, the more
difficult it will be to raise financing
-Relevant, industry experience
-A sales and marketing professional is usually
a must
-Identify business and scientific advisory
boards and marquee advisors
MARKET
-Identify and describe
-Trends and growth
-Demonstrate understanding
Note: Investors expect you to
understand your targeted markets
and customers at least as well as
anyone else
NICHES/SEGMENTS SERVED
-Focus
-Rifle versus shotgun
PRODUCT AND ATTRIBUTES
-Don’t overemphasize the technology at the
expense of the business opportunity
-No more than two or three slides max
-Layman’s language
-Status of intellectual property
MARKET VALIDATION
-Sales
-Beta testing
-Business Partnerships
-Testimonies from prospective
customers
-Market research
COMPETITORS
-EVERY PRODUCT HAS
COMPETITION
-List individually or by category
COMPETITIVE MATRIX
-Matrixes allow the presentation of lots
of information in a useable format
-X Axis-Critical evaluation criteria
-Y Axis-Key competitors or groups
COMPETITIVE MATRIX
Criteria 1
Price
Criteria 2
Speed
Criteria 3
Useful life
Competitor 1
$ 28,000
8 units/hr
7 years
Competitor 2
$ 37,000
10 units/hr
10 years
Competitor 3
$ 31,000
10 units/hr
8 years
You Inc.$ 33,000
12 units/hr
10 years
COMPETITIVE ADVANTAGE
-How you differentiate yourself from your
competitors in a manner that is compelling to
your prospective customers
-Unfair advantage
-Sustainability of advantage
-Barriers to entry
SALES AND DISTRIBUTION
-How will you open the doors to your
customers and get your product to them?
-Should be well thought out and demonstrate
your knowledge of the industry
FINANCIAL MODEL/
HOW YOU WILL MAKE MONEY
-Revenue streams
-Margins higher than industry norms
-Hockey stick growth curve
FINANCIAL PROJECTIONS
-Revenue and EBIT for 3 years
-Identify key financial assumptions
-Investors want “bottom up” sales projections
beginning with your first sale
EXIT STRATEGY
-How are we going to cash in and get rich?
CLOSING SUMMARY
-WHY YOU KNOW THAT YOU ARE GOING
TO BE SUCCESSFUL
-Repetition of most compelling points
ARE YOU READY?
ENTREPRENEURS APPROACH
INVESTORS TOO EARLY
-Unmet need
-Milestones
-Sufficiently large market, niches
-Management team
-Marketing/sales plan
-Market validation
-Competitive advantage/barriers to entry
-Bottom up financial projections