David H. Crean, PhD, Managing Director and head of our Life Sciences and Healthcare Practice Group provides his thoughts and guidance to entrepreneurs, founders and business owners in the life sciences sector on what he has seen as successful pitches to investors and strategic companies in the initial pitches of their company and technology. By providing as much of the information noted below during the process, we believe that you can improve the probability and chances of landing a transaction that supports company growth or exit strategies. David has also previously authored related articles on this topic that can be viewed here and here. Happy to clarify any topic if needed.
The pitch slide deck (a template was created and can be accessed on Slideshare) needs to address the important elements in a well-defined presentation format. Include graphics, pictures, timelines, prototype examples, and simple tables to drive home the message. Greater detail on financial plans is important to give the investor comfort that there is enough money to execute on the plan and get the company to its next value inflection or liquidity plan. David likes to tell his clients that you should always be thinking two steps ahead, i.e., where is your next tranche coming from?
Importantly, the presentation needs to tell a story that captures the essence of the company and why this is a great investment opportunity. In his opinion, the majority of the slide deck should not be composed of explaining the science and MOA. One to two slides may be sufficient but if you need more, the story may be too complex for investors to grasp. Try to focus on conveying the business model and investor case. Keep the audience in mind. You are likely speaking to "money guys", not a roomful of MD / Ph.D.'s. Ask yourself, "why should someone give you an investment?" Lastly, keep the slides <20 and under 10-15 minutes.
1. What does the company do? Focus? Purpose?
2. What is unique about the company?
3. What big problem does it solve?
4. How big is the market opportunity?
5. What are the roles of the senior management team?
1. What is the actual addressable market? Secondary market?
2. What is the problem with the current status quo? Is the timing right?
3. What percentage of the market do you plan to get over what period of time?
4. Why does your company have high growth potential?
5. What are key additions to the team and/or portfolio needed in the short term?
PRODUCTS AND SERVICES
1. Where did the technology originate?
2. Why do consumers care about your product or technology?
3. What are the major product milestones? Current stage of development?
4. What is the mechanism-of-action (MOA)?
5. What are the key differentiated features of your product or service?
6. What key intellectual property does the company have?
COMPETITION/ COMPETITIVE DIFFERENTIATION
1. Who are the company's competitors? Current or future.
2. What gives your company a competitive advantage?
3. What advantages does your competition have over you?
4. What are the barriers to entry?
1. What are the company's five-year projections?
2. What are the key assumptions underlying your projections?
3. How much equity/debt has the company raised; what is the cap structure?
4. When will the company get to profitability?
5. What are the key metrics that the management team focuses on?
1. What is your pricing model?
2. How do/will you compete with respect to price and performance?
3. What partnerships are needed in order to be successful?
4. Are there any proofs of reimbursement for your product or technology?
5. How will you make money for the Company and investors?
GROWTH AND RISKS
1. What early traction has the company achieved?
2. What are the reasons for the early traction and how can it be accelerated?
3. What are the principal risks to the company?
4. Are there any product liability risks?
1. What is your presumed exit? IPO? Acquisition?
If you can’t convey this information and deliver a compelling pitch, then you are likely lacking readiness to make an "ask" to a serious investor or strategic company to get involved. Questions? Leave a comment for us at the end of this article.
Article written by David Crean and first published on LinkedIn.
Objective Capital Partners is a leading investment banking firm whose Principals have collectively engaged in more than 500 successful transactions serving the transaction needs of growth stage and mid-size companies. The executive team has a unique combination of investment banking, private equity, and business ownership experience that enables Objective Capital Partners to provide large enterprise caliber investment banking services to companies with annual revenues up to $500MM. Services include mergers and acquisition (M&A) sale transactions, partnering, equity and debt capital raises and comprehensive advisory services. The firm uses a proprietary process to work to achieve maximum company valuation, premium pricing, and high client satisfaction rates post-sale. The firm’s industry expertise includes life sciences, business services, software and hardware technology, IT services, healthcare services, biotech, and consumer products. Additional information on Objective Capital Partners is available at www.objectivecp.com.
This article is provided for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC makes no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. David H. Crean is a Registered Representative for BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.