Monday, May 9, 2011

Investor Presentation

Wondering what types of information that could be useful in helping you secure funding? Well, there are numerous different types of investor presentation material that you can use. The kind you select simply depends on your needs. Will you use the business plan to secure funding from a venture capitalist or angel investor? Perhaps you're considering a loan? I suppose it just depends on who you talk to as to who wants what. Some investors want an Investment Overview which is used in conjunction with your Long Version of an Executive Summary aka Business Summary. This is used to not just solicit interest from an investor or venture capital firm (VC) about your investment opportunity, but it gives an investor the facts about your opportunity so it can be quickly qualified and vetted.

The process of looking for money can be lengthy, but by providing the right documentation from the get-go, you will shorten the VC process and get the attention your deal deserves. The following is what I suggest:

Investment Overview aka One Pager following this format:

This is probably the single most important document you will send to prospective investors, so ensure it is targeted, concise, complete and accurate, with no mistakes or sloppiness. Develop the Investment Overview last, after you have completed your Business Plan, Executive Summary, and PowerPoint presentation.

A PowerPoint presentation, 12 slides is all you need:
1. Cover Page/Intro
2. Overview
3. Problem
4. Market
5. Team
6. Solution
7. Customers/Revenue Model
8. Go to Market
9. Competition
10. Financials
11. Milestones
12. Summary

Long Version Executive Summary aka Business Summary:
Generally this is detailed, yet it should be brief and concise. Your Business Plan will provide the next levels of detail the Investor or VC requires. Venture Capital firms provide their investment criteria and requirements on their website so that prospective entrepreneurs can provide them the information necessary to determine the deal’s qualifications in view of their investment parameters.

Business Plans
Business plans vary as well. A Business Plan should be over 50 pages and can be upwards of 100+ pages. This is highly dependent on the size, background and complexity of the business, venture or project.

The Business Plan Package is specific to the audience. Be sure to include sections specific to that audience’s requirements and interests. Each Business Plan is packaged and edited for the type of plan and customized for the audience.

Comprehensive Plans are the long ones thus the name. Or you can write a shorter plan sometimes called an Ancillary Plan, typically these are no more than 30 pages with 20-25 pages being the goal. Ancillary Plan brevity forces you to decide what is most important and requirement for the type of plan and the intended audience. Some business plan software templates produce this types of plans.

Going for a bank loan? A basic business plan with an executive summary, market analysis, and three year financials is suitable for bankers. For venture capitalists or angel investors, you may need to expand your financial forecast to five years.

If you fail to grab the attention of the person reading the one pager, executive summary within the first five seconds, it’s quite likely that he or she will stop right there and move on to the next project. So think like a fisherman, you gotta hook'em.

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