If you are raising capital from a number of potential investors a perfect presentation could be a key component of achieving your goal. Over 150 investor presentations given in the past decade concluded in raising millions of dollars of equity capital and millions of dollars of debt equity provides a good basis for understanding how to deliver a superb presentation.
What does experience say about a good investor presentation?
- Clearly describe the investment.
- Clearly define what you will ask of the investor and how much they can invest.
- Describe the time frame for the investment.
- Explain how the invested capital will be held prior to closing the investment.
- Define what the investment life will be and what return to expect.
- Describe how the project(s) will be managed.
Describe the background and experience of the principals. Where they worked, accomplishments, investing experience, significant volunteer work and so on can be included. Some interests and personal information is good to add as it makes the principals into people and causes them to have color and depth in your presentation.
Return tables, sources and uses, and pro forma tables are critical components of the presentation. All of the information above should be included. However, the meat of your presentation should be the things like:
- How much money the project will make, why that is reasonable, and what could effect it.
- How much money the project will cost, why that makes sense, and what may impact the costs.
- How risk is being managed and why this is a really smart way to do so.
- How opportunity is being captured and why this is the smart way to grab the brass ring.
- How you will manage the project.
- How you will market the project.
- How you finally get the investors capital out of the project.
- What you will do to keep the investor completely in the loop on the project.
These items in a top line sense are the “features” of your investment. From the features, you should be talking advantages of the investment. Finally you hit the emotional button. Your presentation should be heavy on emotions for why investment and those emotions should be backed up with great graphics that say the same thing in a very visceral way to your audience.
With all this in place, you have created a compelling investor presentation that explains what the investor is getting into, all the great reasons they are doing it, and why is such perfectly exciting and wonderful thing for them to do with their money.