Eliances.com Secret Session Raise Cash

1. ‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
Stuart Paul, CEO
AZ Life Science Partners, LLC
stuart@azlifescience.com
Private Equity

2. ‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
• AZ Life Science Partners, LLC founded
• Angel and private equity investments, licensing
• Advisors, consultants to VC, PE and med-tech
• Philosophy of partnering with portfolio companies to
unlock potential
• Value creation experts: focus on cost reduction, outcomes
improvement in healthcare
AZ Life Science Partners, LLC

3. ‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
AZ Life Science Partners, LLC
• Requires a great pitch
• Hit the big points early – traction
• Don’t make investors wait 5-6 slides
• Formula for pitching is key; exit strategy is optional but
welcome
• 11 core “elements” every entrepreneur must include in
the pitch
• Too many slides = too much information
Increasing the odds of getting funded….

4. 4
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
• Is not to answer all possible questions
• Is not to close an immediate investment
• It is to open investor’s minds to your vision and get
them excited to know more
• Grab interest but not overwhelm
• Leave them wanting more
• Stand on its own
• Tell a compelling concise story
Purpose of the pitch deck…

5. 5
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
1. Vision / elevator pitch
2. Traction / validation
3. Market opportunity
4. The “Problem”
5. Product / Service
6. Revenue Model
7. Marketing and growth strategy: how you grow your business
8. The Team and key advisors / investors / stakeholders
9. Financials
10.Competition
11.Investment “Ask”: capital raise and use of proceeds
Tell a concise story…

6. 6
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
1. Vision / elevator pitch
Short and memorable
One-liner is best
2. Traction / validation
Timeline and milestones
Early growth metrics
Awards, articles, customer base
Getting it right….(1) and (2)

7. 7
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
3. Market opportunity
Define your market: what business space are you in?
Market size: TAM (total available market vs. served)
Target customers and macro-trends
4. The Problem
What’s the unmet need or problem you are solving?
Make sure solving their #1 problem not #4 or #5
What others are doing to solve it, and why they are not
getting it right?
Getting it right…. (3) and (4)

8. 8
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
5. Product / service
Show how customers value your product/service
Live demo if quick / do not use videos
Show the core value proposition to target customer
6. Revenue model
How do you make money?
What is the pricing model?
Revenue and # customers to date?
Avg revenue per user / lifetime value of customer?
Getting it right…. (5) and (6)

9. 9
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
7. Marketing and growth strategy
Where are your customers looking today for help?
Channels to reach and win customers?
How will you achieve target growth rates?
Your point of differentiation?
8. Team
Who are key team members, advisors, board if series A?
Demonstrate relevant experience
“Skin in the game”? Which roles are key to success?
Getting it right…. (7) and (8)

10. 10
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
9. Financials
5 year P&L projections with 1-2 year historicals
Pre-revenue show 6 year (accounts for lead times)
Critical assumptions
10. Competition
Competitive advantages? Sustainable? Patents /I.P.?
How do you own your own place in the market?
Who are your competitors, why have they succeeded? How
do you truly differentiate from them?
Getting it right…. (9) and (10)

11. 11
AZ Life Science Partners, LLC
‘Secrets of Raising Cash’
© 2015 Eliances. All Rights Reserved
11. Investment “ask”
How much capital raise and stage (seed vs. series A)
Investment terms (e.g., equity, debt versus convertible note) at what
pre-money valuation?
Investors in round, previous investors, new investors? Founders? Key
angels? Strategics?
Avg. monthly expenses? How long will new $ last (runway)?
Prior investment rounds? Size? Investors? Valuation? Key terms?
Use of proceeds? Sales / marketing? Founder salaries? Key employee
hires? Capital equipment / buildout? Patent filings?
Achieve key milestones? 1st customer? Get to breakeven? 3x revenue
growth?
Getting it right…. (11)