Presenting information while pitching to investors

Posted by admin | The Timeline and Business Plan »

For Events Listed I found an equity partner through my Linked In connections. I found a graphic designer based in the UK, who after I pitched the concept to him, was willing to invest close to $150,000 worth of design and marketing services into the opportunity in return for shares.

If I was raising cash for a website venture or an event I would not kick off the project until the investment is confirmed and paid. Thats because getting a ‘yes’ from investors is just the first part - if you have them interested in hearing more, then you need to have a thoroughly sketched out plan to present to them. Every little detail or decision needs to have a business-case behind it.

You will probably need an Information memorandum that outlines everything you must disclose about the investment opportunity. Basically its just a way of bundling information together in a way that can easily be read by investors. This information is vital for sealing the deals, so its a good idea to spend a good amount of time figuring this part out. Its more or else the same for all kinds of businesses.

You can decide the flow and structure of the information, but be sure to add an executive summary at the front. When pitching, a lot of fresh startups forget to add sections for outlining their goals and objectives. Investors need to know about your plans regarding these aspects as much as you do, so do add them.

Its a good idea to formulate the company structure before deciding your equity and share distributing strategies. Based on this you will be in a better position when pitching and discussing the investment opportunity with prospective stakeholders.

Next, your corporate governance strategy also tells a lot about how well and deep you have digged the opportunity. It also demonstrates your openness to sharing your venture with different people in order to come out successful. Businesses are hardly a one-man show and need complementary skillsets and mindsets to make it successful.

Your initial team of key personal and human assets deserve a mention in this information kit as well. Its a way of showing your strengths as well as an idea on how the investment will be spent to finish the product. Startups require a lot of selfless dedication from the initial team, so make sure you get the right one on-board. Everyone should ideally have unique qualities that they bring to the table.

In Events Listed case, I have already spent a good amount of time researching this opportunity. So, its relatively simple for me to estimate the investment opportunity and market size. The latest websites and trends in social media make it easier for internet-based businesses to calculate and gauge the market. There are also different tools like Google Alerts and Analytics that can help you in your research process.

Most of my marketing strategies involve ways of leveraging social media to do community based promotions. If you follow my social media strategies blog, you’ll know how I’m always exploring new tools and seeing how they can benefit people market their events or products better. Having a social marketing strategy doesn’t mean that you can’t put it down on paper - infact these strategies need to be just as intricately planned as anything else. Surely, your investors will want to look at how you are planning on reaching out to prospects. After all, your marketing and sales strategies will directly effect your bottom-line figures and to the investor’s piece of the pie.

Making high-level goals is one thing, planning out an operational and tactical level strategy for achieving those goals is another. Your operational structure will show how well you have distributed the resources to ensure a constant flow in the right direction. The better the structure, the better your tasks, objectives and consequently goals will be met.

Sometimes, entrepreneurs who are desperate for investment, make themselves vulnerable and weak. If you have a good product idea and a sound business plan, then there is no need for you to feel like you have to give away a lot to get going. Make sure you dont sell yourself short. Also, make sure that you carefully describe your terms and conditions of the share offers in this info kit. A good strategy is to make it a win-win for all parties involved.

I’ve noticed how investors are a little hesitant when dealing with newbies who have no financial sense. If you don’t have the skills or background to work out detailed financial forecasts, then you get someone to do it for you before you approach investors. Your financial plan needs to be planned to the nth degree and should be validated before you set it in stone. Your financial plans will show exactly how you are planning on utilizing the investment funds to make money - and how soon you are expecting to get there. Nobody expects magic, but they do need to see sound reasoning.

Once you have discussed your plans, you can summarize your capital requirements. You can write briefly about the current ownership of the entity and what it will look like after securing the investment.

If possible, get legal advice, add disclaimers; make sure you have everything covered. Oh, and don’t forget to add any other material contract associated with the opportunity that the investors will need to look at.

I’ve done my part - its not as difficult as it seems.


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