how to pitch to...

How to Pitch to Investors

Dr Bojana Turic Entrepreneur in Residence

Cross Pacific Capital Partners

Feb 8st 2017 UBC Life Science Institute Workshop

Ingredients to Start up a New Enterprise

Management Team

Market

New Enterprise

Business Idea

Idea

Entrepreneur :

• Ideally, start with a clinical condition not a technology

• Go after large markets

• Pursue clinical condition with a deficient standard of care

• Should have “reasonable” regulatory and clinical requirements

• Protect and manage your ideas

VC:

• Idea or Opportunity?

• Intellectual Property

• Market Size

• Technology Match w/ Unmet Clinical Need

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What it takes to build winning companies- COMPANY FORMATION

Address a worth while clinical need

PRE-SEED SEED STAGE

Need definition Concept Solution

Early IP ,Crude prototypes

Market Research Regulatory/Clinical

Team

Fundraising steps

1. Before the pitch:

Importance of due diligence

Understanding your audience

2. The pitch:

Structure, tips dos and don’ts

3. After pitch:

How do you follow up

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Presenting to Investors

• Use Key Words or Very Short Text

• The PPT doesn’t tell the venture opportunity

• It provides a graphic guide for the presenter to follow to effectively deliver the investment message

• Use Bullet Points For Emphasis

• Tell Your Story With Graphics & Pictures

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Before the pitch

Importance of your due diligence:

• Who are you talking to?

• What do you know about the person, the company, VC?

• Have you done your research?

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Entrepreneurs-vs. VCs: Perceptions and Caricatures

Entrepreneurs think VCs are : • Arrogant, self obsessed • A necessary evil • Simply living off other people’s

money • Lacking operational skills • Never around, always interfering • Incapable of adding value • Clueless (fast turning down “my”

wonderful plan/closing “my” fabulous business) • Unaware that all “my emotion” is

invested in this one business

VC think entrepreneurs/funders are: • Arrogant, self obsessed • Stubborn and don’t listen • Forget they couldn’t get

anywhere “without our” money • Prone not to understand it’s not

their company • Obsessed with valuation • Wildly optimistic • Apt to forget it’s an emotional

roller coaster for “us” too

Source: C.K. , Smarter Ventures 8

Introduction First slide -Title

Identify:

• The Company

• Presenter(s) (Your Name and Title)

• Date*

• Location* (Prepared for …)

• Logo

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Slide Two – Your Pitch

Optional 1a: Give agenda on one slide – few

seconds Vision – Why is this important ? What investors are looking for ?

The first 30 seconds

• The Hook — most unusual, exciting, dramatic, or humorous aspect of your journey

• Why should “they” be interested?

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Slide three and four…

Option 1 :

• Market and existing problem

• Your Solution - Telling your story (Why? your technology matters)

• Your technology (dealing with interruption and questions during your presentation)

What investors are looking for :

• Strong market potential

• Strong Technology (IP)

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Slide three and four cont..

Option 2:

• Starting with the subject : Your technology , invention — explain, reinforce, and prove your point (your vision)

• Market , problem (your market segment)

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Potential traps

• See no problems—only opportunities

• Every opportunity is a priority

• Planning by wishful thinking

Slide number 5

• How are you going to do it?

• Your Business plan, strategy , your competition

• How well you know your industry, your real customer and its buying process

* ( regulatory pathway, reimbursement)

What investors are looking for :

• Strong business model ; barriers of entry

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Slide Number 6

• Who is going to do it ? (Team, Advisors, Board Members)

What investors are looking for:

• Strong Management team

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Slide number 7 : Deal Terms

• Amount of Investment Requested

• Type of Investment (convertible note, equity)

• Projected Sales, 1st Year for revenue, 1st year of profit (When?)*

What investors are looking for :

• A foreseeable Exit + appropriate Return

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Slide number 8 Closing

• Investment message

• Summary

• The Close — demand for action –or- demand for reaction

What investors are looking for :

• A compelling reason to pursue

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Slide Number 9 – optional

• Usually at the later financing rounds

• Not at the very beginning

• Pre-Money Valuation*

• (Post money valuation if amount requested is listed first)

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Balancing 5 Minute Presentation Time

Subject Time Allotment Illustrating the message

Technology 1 Pictures, Graphics, Video

Market 1 Size, Graphic, Demographics , Competition, Achievable Market Share

Business Model 1 Why your company will succeed

Venture Opportunity 1 Valuation, investment type and amount , investment timing with $milestones , ownership % ROI, exit strategy

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Dealing with Q&A

• Dealing with a time shortage

• Extra slides

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Investors-VC Desirable Qualities

• Knowledge of Industry, & NETWORK

• Track Record Vision

• Instinct

• Operational Experience

Moderated Ego Commitment

Now what? How do you follow up?

• Getting the first post pitch meeting

• Call them before to send them any follow up information

• Initially provide just a well tuned/crisp executive summary

• Call back after 10 days, if silent

• Ask permission to sent follow up updates

• Most often Potential Investors do not sign NDA

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You got your first money:

• Team

• Define future funding inflection points

• Be flexible relative to the original plan

• Expect significant changes and surprises

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Thank you

Bojana@xpcp.ca

604 961 2619

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