Creating a Compelling and
Persuasive Series A
Investor Presentation
Jaine Lucas
Ellen Weber
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Early Stage Funding Ecosystem
Credit
Cards
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FFF
BP Comps,
Incubators,
Agencies
Angels
VCs
Angel Investors
Angel investors are:
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Individuals who invest his or her own money in an
entrepreneurial firm
Usually located within 150-mile radius of
metropolitan areas
Motivated by more than profit
Angel Investors – Where to find
them
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Networking (events sponsored by MAC Alliance,
AWE, MADV, EFGP, PSL etc.)
Universities with strong entrepreneurship programs
Business incubators
IP attorneys, SBA, venture capitalists, big four
accounting firms and more
Advisory and consulting firms
AngelSoft.net
Philadelphia Angel Groups
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Other Early Funders
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Ben Franklin Technology Partners
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Bioadvance
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#3 & #5 on Entrepreneur magazine’s list of top early-stage
funders: 15 deals for SEP, 13 deals for NEP
Life science start-ups via a $20MM greenhouse fund
Therapeutics, devices, diagnostics and platform
technologies focused on human health
Other Early Funders
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First Round Capital
Originate Ventures
Osage Ventures
DreamIt Ventures
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First State Innovation
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Privately held initiative with a network of 230 accredited,
high net worth investors (85% in Delaware, 15% in
Delaware Valley)
MentorTech Ventures
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Seed funding, collaborative work space, mentors/advisors
Companies originating at University of Pennsylvania
Medical devices, IT, marketing technology
Before getting involved with
angels:
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Ensure you want a “partner”
Be sure you’re ready to have a Board of
Directors
Understand that involving angels means
giving up equity
Know that your forecasts will be dramatically
reforecasted (as will your valuation)
Be prepared to deliver monthly financials and
strategic updates
An Investor Pitch
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What it is
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What it isn’t
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An eight to 12-minute presentation with an
investor focus
Grabs attention early and keeps it by hitting
highlights
Leaves the investor eager to know more
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A technology presentation
A sales presentation
An opportunity to “get in the weeds”
What We’ll Want to Know
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What is the opportunity? How big is it?
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How do you make money?
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Do you have proof that customers will buy? Is it essential
or a nice-to-have?
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Can you defend it in the market? What’s the secret
sauce?
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Can you execute? Can you prove it with the management
team’s track record?
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What will you do with our money?
Sections and Flow
Title Slide
Market
Opportunity
Product or
Service
Description
Go to
Market
Strategy
Intellectual
Property
Competition
Management
Team
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Ask and Use
of Funds
Exit Strategy
and Summary
Executive Summary
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Connecting to RHV
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Go to our website, follow our process
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Check in periodically for updates
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Find a referral or sponsor– look at our bios to see
who we are and who we might know …multiple
referrals are even better
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Have a clear value proposition (and “secret sauce”)
We’re investing in you
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Be passionate
Be entrepreneurial
Be honest
Be coachable
Do your homework
Listen and accept negative feedback
Be a (or find a) business person managing a
technology-based company
Good Luck!
www.robinhoodventures.com
Ellen Weber, Executive Director
3711 Market Street, 8th Floor
Philadelphia, PA 19104
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Title Slide
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Include on the slide
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Talk about…
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Company name, logo and date of presentation
Ensure a highly professional image – get help if
you need it
What your company does (high level)
Open with a “wow statement” that commands
attention
Market/Opportunity
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What is the problem your product or service solves?
How is the market solving the problem currently?
Why is your solution superior?
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What is the target market and size?
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What is your value proposition
Must be compelling and believable
What segments are you addressing?
What are the size of each?
Prioritize segments; provide justification
Product/Service Description
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Briefly explain your product or service
Why and how does it solve the defined
problem?
Provide diagrams, photos, videos
Avoid appearing too “emotionally attached”
to the product
Don’t get in the weeds: this is not a sales
presentation!
Competitive Landscape
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What are firms and products are providing
solutions to the problem?
Use pie charts to show market share of
competitors
What differentiates your product or service?
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Superior performance, lower cost alternative,
lower side effects, etc.
How entrenched is the competition?
What are their weaknesses?
Perceptual maps can help in some cases
What are the “barriers to entry” for others?
Intellectual Property
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What intellectual property do you have?
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Do you have a proprietary and defensible
position?
Mention licensing arrangements, patents filed and
what type
Trade secrets, copyrights, trademarks, etc.
IP is an additional security blanket for investors
Go to Market Strategy
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How will you reach target customers and drive
revenues?
How will you make money (revenue model)?
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Sell product or service direct to customer
License technology
Develop product then sell to competitor
Merger-acquisition
What are the key messages for your target market
segments?
Describe marketing and sales plan
What partnerships or alliances are necessary?
Taking it from idea to market success
People
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Management Team
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Advisory Board
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List two or three key players: CEO is the focus
List successful exits, impressive affiliations, inventions,
discoveries, degrees, etc.
Acknowledge additional key players needed
List three or four highly impressive members
Round out deficiencies or weaknesses of management
team
Notable industry experts, key executives or former key
executives in your field/industry
Demonstrate you have the right team to execute!
Financials
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($ 000’s)
2009
2010
2011
2012
2013
Revenues
$ 277
$7,016
$17,299
$28,315
$39,706
Expenses
$1,1418
$4,075
$6,087
$9,178
$11,443
EBITDA
($1,155)
$2,941
$10,252
$19,137
$28,263
Minimum of three years’ financial projections
Revenue, expenses and EBITDA are typical
Chart form is preferred
If you received funding, could you scale faster and
become profitable sooner?
Be prepared to talk about break even analysis, etc.
Funding and Uses
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How much have you raised to date and from
whom?
Show founders investment and/or “skin in the
game” from management team
List current and future asks
How will the funds be used?
For therapeutics and medical devices, show
clinical trials milestone with needed funding
Exit Strategy
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When will investors receive back their
money?
What multiples are likely? Are there
comparable exits?
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What will be the scenario?
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Provide examples where possible
Acquisition by competitor or market leader
IPO (proceed w/ caution!)
Special Issues for Therapeutics
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Revenue projections are often not relevant for
therapeutics – that’s OK
Long and expensive runways to commercialization
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Phase 1-3 studies are time and cost intensive
Milestone charts demonstrate an experienced and
knowledgeable CEO
Higher failure rate compared to other technology
sectors
Show how you can mitigate risk
Think out of the box for investment
Summary
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Reiterate the market problem your
product/service solves and why it represents
a disruptive or superior approach
State the large market potential and
scalability of your business
Emphasize you have the right team to turn
idea into profits
Thank the audience and solicit questions
Put your logo and contact info on it.
Valuation. . .
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Delay talk about valuation until you’ve sold them on
the idea
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An entrepreneur’s company is always worth less
than he/she thinks
Pre-money/early stage valuations are imprecise and
difficult
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Few assets, little cash flow
Valuations are complex
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And never in an investor forum!
Make it a closed door discussion
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Science (formulas, number crunching)
Art (how do you apply the numbers?)
Factors Affecting Valuation
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Previous Investment
Money required to achieve exit
Time to achieve exit
Market adoption and long-term
market potential
Competitive landscape
Financials
Value proposition
Entrepreneurial ecosystem
Investor comfort level