Investment Journey

Pitching and Planning

E-Synergy

• Ten years old– Business people– Entrepreneurs

• Fund Manger for early stage businesses– £35m under management– 100 investments

• Consultancy services to early stage business– Investment Readiness Training– Business Incubation– 800 companies supported

How do investors make decisions?

• Discounted cash flow

• Full analysis of your intellectual property

• A very comprehensive business plan

They make a judgement on

• You and your team

• Your idea

• Their view of the market

Maybe then back it up with

• Discounted cash flow

• Full analysis of your intellectual property

• A very comprehensive business plan

• And more

What are you pitching for?

• What you are really after is a meeting

• Things other than money– Support– Experience

• Money is only obtained after a journey of meetings

Slide 6

Pitching Journey

Slide 7

Investment Committee

Due Diligence

Investment Committee

Investment Executive

Networking and

Introductions

Business Angel

Due Diligence

Business AngelAngel Group

Fund Manager

Business Angel

Offer

Offer

Commitment from InvestorsInvestor Networking

Investors – know your audience

• Do your research– Have they any money?

• Be interested in them– Their views– Are they busy doing deals?

• Try the softly softly approach– Funding need in the future– Support – Chairman

• They will very rarely say no– Read the signs

• Why do they network and meet people?– To be seen to be active– To gather information– Meet their colleagues– Look for deal flow

Slide 8

Finding Investors - Networking

•Intermediaries– Good or Bad?

•Investment often comes from an odd route

– Talk to as many people as possible

•Listen as well as talk•Don’t outstay your welcome•Always try and come away with a new contact

Slide 9

Networking Events

Pitching Events

Finding Investors - Introductions

• Get someone to make an introduction for you

• Very good Executive Summary

• Business Angels aren’t listed

• Have good networks

Slide 10

Cold calling

Phone

Introductory e-mail

Accelerators

Before you start on the journey

• Be able to pitch your business in any format– Three sentences– Three hours

• Understand the key facts about your business– Management Team– Market Opportunity– Product USPs– How the money turns

• Either go for money later– Look for support

• Advice• Non Exec Director or Chairman

• Or go for money now– Have a business plan and be able to:

• Give specific answers• Give detailed answers• Understand the financials

Slide 11

Pitching Guidelines

• Stick to the rules– Test of your management ability– Polite

• Try and tell a story• Answer questions succinctly

– Shows you know your business– Leaves time for other questions

• Do not bore your audience– Sell yourself

• From the Soul with Passion and Energy

Slide 12

What should go into a Pitch?

• Summary – focus on your USPs• Team• Market pain and how you solve it• The Product

– Intellectual Property• Sales

– Route to Market– Pricing and Margins

• Current Status• Metrics• Financials

– Money required and what you are going to do with it– Forecast– Valuation?

• Exit– Route and Price

• Summary

Slide 13

What is this a graph of?

Slide 14

Time

Attention

How long?

• To be precise, you have three minutes and 44 seconds.

• That’s the conclusion from a new study by Harvard Business School professor Tom Eisenmann and DocSend, a company that provides for the secure online transfer of documents.

What does your audience hear?

Slide 16

Did you know?

Slide 17

People make snap judgments within the first 2 seconds of meeting.

Delivery

• Opening– Ask a question– Quote a startling statistic– Tell a short, related story– Use humour (with care)

• Vary your Eye Contact• Vary your Pitch• Vary your Volume• Pace Yourself

– Don’t run out of time• Articulate

Slide 18

Technical Information

• Speak your audience’s language

• Don’t use acronyms• Stress the benefits• Ask questions to confirm

the audience’s understanding

• Bring visuals or prototypes

• Provide sound bytes – “Shrimp Viagra”

Slide 19

Visuals

• More is less• Don’t read form the slides• Easy to read

– Less words– More diagrams

• Visible from the back of the room

• You must look good– Slides– Documents– Website– Infographics

Slide 20

And finally

• Finding money will take a lot of your time• Don’t give up until your heart tells you• Network, Network, Network • Have a plan

– Plot your way towards money– Manage the investment process

• Remember – beauty lies in the eye of the beholder

Slide 21

A Long Term Plan

Sales

Development

Infrastructure

Funding

Milestones

Partnerships

Time

Activity

FirstSale Sales

PrototypeFirst Production Model

Distribution Agreements

FFF

WebsiteOnline Sales

Support

Grant Equity Round 1 Loan

Equity Round 2

Non Exec Directors

Outsourced Development

Sales PartnersManufacturer

A Short Term Plan

• What money do I need next• Who am I going to get it from?• How am I going to find them?• How am I going to meet them?

Any Questions