The Investor Presentation. Slide 1 The Investor Presentation Investor Evaluation Criteria 4 Broad Categories Define the Overall Quality.

The Investor Presentation

Slide 2

www.ric-centre.on.caThe Investor Presentation

Investor Evaluation Criteria4 Broad Categories Define the Overall Quality of an Opportunity

•Large•Growing•Global•Understanding of segments

• Protected Technology• Competitive Advantage• Ongoing Roadmap• Cleared Regulatory hurdles• Ability to grow the business

Sustainable Adv

• Proven Leadership • Advisory Board• Active Board of Directors

Team

• Solid business model• Projections are reasonable• Validation in market• Ability to creat eLT value

• Solid business model• Projections are reasonable• Validation in market• Ability to creat eLT value

Key Investor Requirements

24

Business Model / ROI3

Large Market1

Slide 3


Some Additional Points on how Investors Score an Opportunity

Competitive Differentiation

Can the company implement barriers to entry for competitors through patents, quick time to market or other means?

Can the proposed marketing strategy be executed to acquire customers?

Strong Exit Potential

What are the likely exit scenarios and timeframes for shareholders?

Financial Considerations

Is the business model novel and is it practical?

What are the potential investment returns?

What is the total investment required to reach profitability and investor liquidity?

Strategic Fit

Does the entrepreneur’s technology, value proposition and market differentiation fit with the investor profile?

Value Add

Is there an opportunity for the investor to bring additional value to the company through distribution channels, references, technical or market expertise?

Strong Management Team

Does the management team have a solid track record, domain expertise and a proven ability to deliver results?

Market Opportunity

What is the size and growth rate of the market being addressed by the opportunity? Is it significant?

Unique Technology

Are there proprietary intellectual property and patents on the technology or business processes? Is the technology secure, reliable and scalable?

Investor Evaluation Criteria

Slide 4


Investor Presentation Components

1. Intro / problem / hook

2. Presentation outline

3. Market Opportunity

4. Value proposition

5. Product uniqueness / IP

6. Business model

7. Marketing & sales

8. Current situation / successes

9. Competition

10.Management team

11.Financials

12.Timeline & the ask

13.Summary / closing

14.Appendix

Suggested Format (8-15 Slides – 10-20 Minutes)

Presentation Tips

Use at least 30 point font. No more than seven (7) lines or points on a slide!

ONE (1) major takeaway message per slide + supporting information

Follow the general order of slides and content as outlined in this template.

Modify based on your audience, timeframe, and the purpose of each particular presentation you give

For example, if you are presenting to the RIC Centre Investment review panel, you will have more detail on your financial and investment / ask slides than if you are presenting to the RIC Centre 360 Virtual Advisory Board

Slide 5


Intro / Problem / Hook

Key Items to Address

Explain the fundamental problem you are trying to solve

and why you started the business. Tell a story, ask the

audience a question, use statistics, get them ENGAGED

You can either tell your intro story / hook on this first

slide, or create another slide with an impactful / emotion-

linked and relevant image to show as you tell your story

General Information

Title: Investor Presentation

Company Name & Logo (If applicable)

Presenter Names

Presenting Audience (Company Name)

Mark Document as “Confidential” (Mark as a footer so it

appears on each slide of your presentation)

Slide 1

Presentation Tips

Get excited, show enthusiasm! Make the audience excited. Help them identify personally with the problem

Frame the business problem you solve using specific customers (where possible)

Are there existing solutions or are you creating a new market?

Why are existing solutions not good enough?

Slide 6


Presentation Outline


List the topics you will be covering during the

presentation. Tell the audience what you will be talking

about, and what the purpose is of your presentation

If you are pitching for money, say that upfront

If you are looking for advice, also say this upfront

Slide 2

Presentation Tips

Tell the audience what you will be discussing in your presentation, and why you are giving the presentation

Slide 7


Market Opportunity


Quantify the size of the problem you are solving

How big is the total addressable market (all potential

customers / users of your technology, in all market

segments)

What market segments / verticals are you going to focus

on initially? How big are these? Why will you focus on

these first?

How fast is the market growing?

Is it a new market, a mature market?

Slide 3

Presentation Tips

Use data to back up your assumptions. Use secondary or third party research and cite your sources

Use your own market research data to back up your claims

This is a good place to put a market segmentation diagram

Slide 8


Value Proposition

Value Proposition

Specifically describe what your product is

Who is the specific target customer?

What value do you bring your target customers?

Description and Example:

A value proposition is a statement of the unique benefits

delivered by your offering to the target customer. It describes

the unique value of your product or brand and offers a

compelling reason for customers to buy

“Google is the world’s largest search engine that allows internet users

to find relevant information quickly and easily.”

“Google is the world’s largest search engine that automatically provides

advertisers with potential customers tailored to the ad content,

increasing click-through rates and conversion rates.”

What the product is; target customer; values

Slide 4


Presentation Tips

Remember – Sell your story. Don’t just explain your technology.

State what factors have changed that now make this problem easier to address with your technology

Is it better, faster, cheaper?

Slide 9


Product Uniqueness / IP


Continuation on the value proposition – can be part of the

previous slide or expand on an additional slide

Describe your product or service(s). Focus on why it’s

unique.

Include photos or screen shots

Detail how your product is scalable and when you plan to

launch

Outline the next R&D steps to further build on or improve

your offering.

Include a discussion of intellectual property

How will you protect your IP? Patents, trademarks, trade

secrets, first to market / speed, continuous innovation etc.

Slide 5

Presentation Tips

What makes your technology unique and hard to copy or replicate?

What prevents competition from doing the same thing? What’s your ‘secret sauce’?

Leave live demos for another part of the presentation (instead use screen shots, product photos or a simplified architecture diagrams where appropriate)

Avoid jargon. Limit the use of non-standard language and acronyms.

Be very honest about the status of product development - is the product real? Make sure you are clear about what parts of your solution are in development vs. customer trials vs. products released (that customers may be paying for)

Slide 10


Business Model


Most important slide – make it very clear

A business model describes the value an organization

offers its customers and illustrates the capabilities and

resources required to create, market and deliver this

value and to generate profitable, sustainable

revenue streams.

How do you acquire customers, how do you charge them,

how much do you charge them? (retail, licensing, SaaS

etc).

Cost to acquire a customer? Total lifetime value of

customer?

Through what channels (direct to consumer, online,

business to business, through partners, distributors, etc)

What are your fixed costs, what are your variable costs?

(cost of manufacturing, marketing/sales, overhead etc.)

Slide 6

Presentation Tips

Explain clearly: How does your business make money?

Identify specifically who pays you for your product / service

Be prepared to defend your assumptions and numbers

Slide 11


Marketing / Sales


This can expand on your business model – optional. Can

be combined with previous slide, or expanded on in an

additional slide.

What is your pricing strategy?

What is your current sales pipeline? Value of it?

Through which media will you communicate with your

market?

What is your branding strategy?

Who are the Key Opinion Leaders (KOLs) in your field?

How long is your sales process?

Where do you get your prospective customers ?

What’s your distribution strategy?

Slide 7

Presentation Tips

What is your general go-to-market strategy? How is it scalable?

Where do you start? Where / when do you expand? Which market segments and geographies?

Slide 12


Current Situation / Successes


Stage of product development

Any prototypes? Functional? In Beta testing? Pilots?

Any partnerships? Key partners

Any sales? How much? Free trials? Key customers?

Early adopters?

Patents, trademarks etc. granted?

Funding secured?

Funds raised / spent to date?

Key hires?

Current area of focus moving forward / next steps?

Slide 8

Presentation Tips

Show off your progress to date!

Level of detail based on purpose of presentation, audience etc.

Providing a proof that people have paid or will pay for your solution is one of the most important points you can make in your presentation.

Slide 13


Competition


Direct and indirect competitors

Established and pipeline competitors (current vs future

upcoming)

Competitor matrix vs product functions and values (to

compare to your product)

How are you different? Additional value added? (cheaper,

better, faster, etc).

How do you maintain your competitive advantage

(reference to product uniqueness slide, IP, features,

‘secret sauce’ etc)

Slide 9

Presentation Tips

A good way to present competition is by using a matrix to highlight functions and values vs your product

How can you position yourself among the competitive landscape?

Are there gaps within the niche you are in?

Be careful not to dive into an exhaustive list of competitive deficiencies at the feature level.

Do your homework on competitors beyond simple scans of their website. Look for analyst reports/whitepapers or reports in the trade press

Do not misrepresent competitive strengths or weaknesses. If you don’t know, say so.

Slide 14


Management Team


Founders, team members and advisors

Include pictures if possible, title/function and BRIEF

highlight of relevant education or experience (1 line)

If there are too many, break into two pages

Slide 10

Presentation Tips

Don’t spend too much time, just highlight relevant functions within the organization and critical points on expertise

The point of this slide is to convince the audience that you have the team to get the job done and be successful.

Team is cited by most experts as the most important reason investors sign on

If you have an incomplete team, be honest with the fact. Describe key gaps and plan to address (i.e. will you approach through new hires or consultants, advisors. board members)

Show you and your advisors have the capability to attract quality talent

Slide 15


Financials


Beware hockey stick projections. Are your sales

projections realistic and achievable?

Base financials on realistic and defendable assumptions

3 year forecast is typically sufficient

Graphs or tables – present in a clear way

Identify breakeven point / cash flow positive

Identify points of inflection due to assumptions such as

expansion into new geographic region, release of next

generation product, follow-on investments etc.

Does your projection rely on external funding? Comment

on this

Slide 11

Presentation Tips

Assumptions for financial forecast should be defendable and based on realistic figures

At this stage investors don’t want to see a detailed spreadsheet.

It is important to show significant but realistic annual growth to be of interest to investors.

Investors aren’t expecting you to be able to see all future revenues/expenses in great detail. However, your numbers should align with all of the assumptions you have made throughout the presentation.

Pay particular attention to key assumptions that could seriously affect your forecast such as sales cycle time; estimated go to market costs and start dates of new personnel.

Estimated 3 Year Projections

Year 1 Year 2 Year 3

Revenue

Expenses

Net Income

(Loss)

Slide 16


Timeline & the Ask


Based on your audience, this will be different

If pitching to investors (RIC Centre Investment Review

Panel), make sure to outline investment to date, and

future rounds of financing required in order to meet your

financial projections on the previous slide. Comment on

valuation and investor ROI. List the proposed uses of

funding (not in extreme detail, just generally). Outline

milestones you will achieve along the way. Potential exit

strategies (what do you want to do with the company)?

If pitching to RIC Centre 360 Virtual Advisory Board or

Regional Alliance, the ask may not necessarily be fore

money. Focus on asking the panel for advice on specific

components of your business strategy, or for connections

to specific potential partners, or on your presentation

style in general.

Slide 12

Presentation Tips

The ask is dependent on who the audience is and what the purpose of the presentation is

Your ask should be as specific as possible.

Take milestones seriously - this is what investors pay for - they are essentially your promise to perform

Be aware of share dilution issues

Slide 17


Summary


Re-iterate the most important take-away points from your

presentation

Re-iterate the purpose of giving your presentation (this

slide should be very similar to slide 2 – Presentation

Outline

Close the presentation with as much enthusiasm and

excitement as when you first started

DO NOT close by saying “And that’s it” or “Thank you for

listening, any questions” or “That’s the end of my

presentation”

Slide 13

Presentation Tips

Remind the audience the most important points from your presentation, and the reason you are presenting to them

The close is very important, make it count!

Slide 18


Appendix


Add additional detailed slides here, including backup

information for any assumptions you made in your

financials

Some ideas for consideration:

PEST analysis

Job descriptions

Technical specs

Financial spreadsheets

Testimonials

White papers/references

Presentation Tips

It helps to have backup slides during the Q&A period – try to anticipate what questions will be asked

Slide 19


Potential QuestionsExamples of Some Common Questions

Presentation Tips

Don’t get defensive when answering questions. You should remain calm and back up your answers with facts

The Investor Presentation. Slide 1 The Investor Presentation Investor Evaluation Criteria 4 Broad Categories Define the Overall Quality.

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