Alexander M. Orlando: Fundamentals when pitching to investors

Presents

Prof. Dr. Alexander M. Orlando

November 26 2012

© 2012 Alexander M Orlando, MBA, DBA www.innovahub.ocm [email protected]

The life of 80% start-up

IMPOSSIBLE?

Overview of financing options

Angel Financing

Venture Capital

Private Equity

PublicStock Markets

Self Finance / Bootstrapping

Debt / Bank Finance

Equity FinancingNon-Equity Financing


Large PotentialMarket

Opportunity

Unique Product Or Concept

PassionateFounding Team

Pre-requisites

Intensecompetition

likely

Need to moverapidly

Implications…

Hiring

Infrastructure

VC funding supports

Rapid Product Development

Internationalization

Partnerships

Commercialization

Good reasons to raise equity finance

1. Elevator Pitch

2. The Problem

3. Your Solution4. Market Size

5. Business Model

6. Proprietary Tech

7. Competition

8. Marketing Plan

9. Team / Hires

10. Money / Milestones

InnovaHub

The four S of Innovation ©

Individuals that inspire through their wishes innovation

Professionals that utilize their skills and knowledge to propose innovative solutions for a prize.

Inventors or innovators that seek to to sell, license, or fund their inventions.

Entrepreneurs, organizations, and investors that are looking for new ideas, solutions, or inventions.


an effective elevator pitch is illustrative and tangible.

picture your idea

3 keywords + your name

describeyour idea

to

60 to a max of 90 seconds

….. tell me more…

keep your eyes shut while someone reads your text out loud


100 page business plan not required

20 page ppt which clearly answers main questions is best bet

Product Market Business Model Team Competition Product Roadmap Technology

Overview Business

Development Financial Status

Sharing relevant information

Pre - first meeting Pre - termsheet Post - termsheet

• Dialogue rather than documentation – expect lots of meetings

• Calls with current / prospective customers or partners

• Meeting broader team

• Brainstorming around strategy

• Identifying key hires post closing

• Formal presentation to VC partnership

• Some additional reference calls with partners / customers

• Personal reference calls

• Legal / accounting audit (if relevant)

• Drafting legal documentation

2-4 weeks 1-2 Months

Investment Size

Equity Financing

SeedEarly StageSeries A, (B)

Later Stage(B),C,D…

Pre-IPO / Buy-out

PrivateEquity

Potential Sources of Funds

0 - €1m

Grant-funding

University seed funds

Friends and family

Angel Investors

(Venture Capital)

€2m-€20m

Venture Capital

(Wealthy) Angel investors

€5m-€20m

Venture Capital

€30m+

Specialist Late stage tech investment funds

Hedge Funds


Stimulate and motivate the investor to learn more. Hook them on the first page. Most investors are inundated

with business plans. Your first page must make them want to keep reading.

Keep it simple. After reading the first page, investors often do not understand the business. If your business is truly complex, you can dive into the details later on.

Be brief. The executive summary should be 2 to 4 pages in length.

The Executive Summary


Investing is a people business, and getting a meeting is all about “who you know”

Best way to approach a VC is some form of introduction If you don’t know a VC, find someone who knows you

and get them to introduce you Entrepreneur, professor, attorney… (Linkedin…) Sending a plan to [email protected] is a waste of

time

Approaching VC’s

ALEXMORLANDO

www.linkedin.com/in/alexanderorlando

www.facebook.com/alexander.m.orlando

[email protected]

www.InnovaHub.com

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