Great Executive Summaries

Slideshow Transcript

1. Slide 1: Great Executive Summaries Andrew Forbes 01/27/07 Earlystage.com Confidential 1
2. Slide 2: Why create an executive summary? • Executive summaries – put lipstick on the pig – are the camel’s nose under the tent wall • Get your foot in the door with investors, who – are only interested in a huge payoff from a “sure thing” – follow investment trends – use your executive summary to make a decision about agreeing to a face to face meeting with you 01/27/07 Earlystage.com Confidential 2
3. Slide 3: What investors know • Taking a company from startup to liquidity event and standing where lighting is going to strike have a lot in common – Andrew Nash • The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - but recognize the opportunity – Richard M. Nixon • Genius is 1% inspiration and 99% perspiration – Thomas Edison 01/27/07 Earlystage.com Confidential 3
4. Slide 4: What investors want • One big risk – can you profitably sell your product / service? • All minor risks mitigated • All the dots connected • No learning on their nickel • To know that you know the rules of the game • To not wake up at night wondering what possessed them to put money into your venture 01/27/07 Earlystage.com Confidential 4
5. Slide 5: Put on a happy face • The one page executive summary opens the door • Tells the investor how you plan to make money • Shows that you: – have connected all of the dots – have minimized the risk on everything but selling your product – are ready for money – know how the game is played – won’t wake the investor up in the middle of the night 01/27/07 Earlystage.com Confidential 5
6. Slide 6: Header • Who are you • Where are you • What is your contact info • That you have a working domain name • That you have a web site • That you have a logo • That at 30,000 feet you are a real company 01/27/07 Earlystage.com Confidential 6
7. Slide 7: Left Column • Management • Lawyer(s) • Accountant • Bank • Amount sought • Previous investors • Use of funds – this is how you’re going to use the money you raise to resolve your one big risk • That at 10,000 feet you still look like a real company 01/27/07 Earlystage.com Confidential 7
8. Slide 8: Business Description • A paragraph that describes your business • Should track with the first couple of sentences of your elevator pitch • Clear, concise, and non-technical description 01/27/07 Earlystage.com Confidential 8
9. Slide 9: Business Strategy • A paragraph that describes how your business is going to work • Should track with your elevator pitch • Clear, concise, and non-technical 01/27/07 Earlystage.com Confidential 9
10. Slide 10: Product / Service • A paragraph that describes your product and / or service • Clear, concise, and non-technical 01/27/07 Earlystage.com Confidential 10
11. Slide 11: Unfair Advantage • A paragraph about what makes you special • Are there barriers to entry? What are they? • What makes you better, faster, stronger? • If you have IP, how are you protecting it? 01/27/07 Earlystage.com Confidential 11
12. Slide 12: Target Market • A paragraph about your customers • Who are they • Why will they buy from you • What about them will cause them to view your product / service as unique / special 01/27/07 Earlystage.com Confidential 12
13. Slide 13: Sales Channels • A paragraph about your sales channels • How are you going to sell your product / service • A couple of hints – Do not mention channel partners unless the deal is already in place and generating revenue – If you can’t sell your product yourself, it is very unlikely that other people will sell it for you 01/27/07 Earlystage.com Confidential 13
14. Slide 14: Competition • Brief paragraph acknowledging your competition • Do not dwell on this topic • Hints – Do not say you have no competition – There are always other companies competing with you for your customer’s money 01/27/07 Earlystage.com Confidential 14
15. Slide 15: Outlook • A paragraph about where you’ll be in five years • Employ every last bit of your Hemingway- eske abilities • Don’t hold back 01/27/07 Earlystage.com Confidential 15
16. Slide 16: Financial Projections • Three lines – Year (one through five) – Revenue (in thousands) – Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) • Revenue should be at least $100 Million in year five • EBITDA should be between 30% and 60% of revenue 01/27/07 Earlystage.com Confidential 16
17. Slide 17: Footer • If your complete address is not in the header, put it in the footer 01/27/07 Earlystage.com Confidential 17
18. Slide 18: Summary • Your executive summary should – Be one page – Make it clear you’ve connected all of the dots – Identify your one big risk – Make it clear how your plans and the investor’s money will resolve the one big risk – Make you look like a real company from 1000 feet – And most importantly, cause the investor to take your call when you contact them to set up a face to face meeting! 01/27/07 Earlystage.com Confidential 18
19. Slide 19: Contact Information Andrew Forbes a.forbes@earlystage.com 01/27/07 Earlystage.com Confidential 19