It can be intimidating to present your new company to a capital venture firm in order to secure investment capital. However, this process can be made much less stressful if the presenter has numerous topics which he can discuss with the potential investors. It is important to put the best foot forward in such situations. First impressions can make or break such a presentation, so exhaustive preparation is essential.
The introduction of the company is one of the most important components of an investment presentation to potential investors. Selling oneself and ideas to the investors is the premise of this meeting, so the presenter must do so with clarity and purpose. Presenters should demonstrate that their management team can lead the company and earn a return on the investment of venture capital firm.
Potential investors want to know if there is a market for the idea or product in which they are asked to invest. The presenter should do thorough research to lay out a detailed summary of the market, naming the competitors and the potential market share that can be attained. The presenter's in-depth understanding of the market shows the investors that the presenter has conducted research and is up to the task of penetrating the market with his idea or product.
The presenter should highlight the experience and expertise of the management team that will be in place when the investment is made. It is imperative that the potential investors have confidence in the management team and its ability to generate a profitable return on their investment. Many venture capital firms view their investments as an investment in people rather than an idea or product. Therefore they place a high emphasis on the competency of the people involved.
Call to Action
The direct request for investors to place money in the business is an important aspect of the investment presentation process, as it is a call to action. This segment of the presentation should be persuasive, but not so much so that it makes the investors uncomfortable. This call to action should list exactly the amount of money needed for the business and also the amount of money that is expected to be made in the future on their investment.
Investor Exit Strategy
When investors like a potential opportunity, they will want to know the entrepreneur's exit strategy. The exit strategy should detail the method in which the investor can recoup his investment and return. Common exit strategies include an initial public offering or the sale of the business to an acquiring company. The presenter should also determine a timetable in which the venture capital investor can exit the investment. This time period may depend on the type of business that is seeking investment start-up capital.
A southeastern Ohio native, Justin Johnson is a finance professional with accounting and financial planning experience in various manufacturing industries. He discovered a love for writing as student at Pensacola Christian College and after learning many lessons in the workplace, he enjoys writing business and finance pieces.