2. Investor Story Core Message Business Traits
High Growth
Opportunity
We are exploiting an impact
opportunity that will deliver
market rate returns.
● Are seeking equity
● Have significant revenue traction
● Are working on a large market opportunity
● Have or can define a profitable unit model
Innovation Play We are using a novel approach
that could redefine or disrupt an
existing industry, in a way that
includes better impact.
● Have a truly unique solution
● Can show exciting potential for your innovation
● Are pursuing a big market opportunity
● Believe your industry will look significantly different in 5-10 years if
you're successful
Impact Delivery at Scale We are delivering real impact on
our thesis through a scalable
business model.
● Have a strong impact thesis/theory of change about how part of your
business creates impact
● May be working in a market with mainstream players you are trying to
differentiate from
● Believe impact and financial return are inextricable if you are
successful
Addressing an
Underserved Need
We can sustain a business that
solves an important problem for
an underserved population.
● Have a strong impact thesis/ theory of change
● Are working in a market considered concessionary
● Are serving previously underserved people
● Might target low to middle income customers
● Might be a for profit offshoot of a nonprofit doing deep impact work
3. Investor Story Goal: Competitors & Competitive Advantage
High Growth
Opportunity
Describe current and future competitors, how you stand out from them, and your strategy for mitigating risk from
competition.
Innovation Play Describe current and future competitors, and show you know more about the motivations of your customers than
existing competitors.
Impact Delivery at Scale Describe current and future competitors addressing this problem and how are you differentiating yourself from
them.
Addressing an
Underserved Need
Describe current and future competitors addressing this problem and how are you creating a bigger impact than
them.
4. Investor Story What to Include & Questions to Answer
High Growth
Opportunity
● What is your key differentiation from competition?
● List of primary competitors with comparison to your solution (e.g. feature comparison chart, target
customer comparison chart)
● If there is a major legacy player (that investors would know), make sure you address your strategy for
capturing market share
Innovation Play ● You have to be more attuned to the ecosystem you are entering and what competitors will do when they
notice you
● Explain the existing value chain and the new one if you are successful
● Will they compete to acquire you or crush you? Why?
● If there is a major legacy player (that investors would know), make sure you address your strategy for
capturing market share
● Be sure to look at alternative solutions as well as direct competitors
Impact Delivery at Scale ● Who else is doing this work?
● How is your approach different?
● Why do your customers care about how you are different? Prove it.
Addressing an
Underserved Need
● Who else is doing this work?
● How is your approach different?
● What impact are you able to generate that they are not? (e.g., more people impacted, more effective
approach, more integrated)
5. Types of Competitive Advantage
1. Cost-based advantage
2. Advantage from a differentiated product or service
3. First mover advantage
4. Technology-based advantage or barriers to entry
5. Brand
6. Network Effect
6. SWOT Analysis
Strengths
Powerful capabilities you
have and offer
Weaknesses
Gaps in your resources or
offering that might hold you
back
Opportunities
Untapped or unexplored
areas of potential growth
Threats
Outside forces or external
factors causing risk
Conduct a SWOT analysis of your
business and competitors. This is best
conducted with people across multiple
disciplines to consider different angles.
10. June 27th Deliverable
● Identify which “Investment Story” is most relevant to your business
● Create 1-2 competitor slides which answers all key points and questions relevant to
that story and provides a clear competitive advantage statement
11. High Growth
Opportunity
“We are exploiting an impact
opportunity that will deliver
market rate returns.”
● Tells the investor that you can grow and reap significant returns in 3-5 years
● Story focused on market size, revenue traction, and team experience
Innovation Play “We are using a novel approach
that could redefine or disrupt an
existing industry, in a way that
includes better impact.”
● Your focus is on a clear, compelling innovation that can disrupt the status quo in
an industry, value chain, or market, or it’s on why you could be an early success in
an emerging industry segment
● Your greatest barrier with this story is convincing investors that you have a
willing customer and the right timing
Impact Delivery at Scale “We are delivering real impact
on our thesis through a scalable
business model.”
● The business not only has a strong thesis about how impact could be delivered,
but that the impact is repeatable and scalable
● The greatest barrier with this story is showing investors that your impact thesis
will not cost the investor a significant trade-off in financial return, and that there
is a scalable unit model they can believe in
Addressing an
Underserved Need
“We can sustain a business that
solves an important problem for
an underserved population.”
● This is an investment story for investors primarily focused on impact– on serving
and solving problems for the most vulnerable groups
● Focus on how you have determined that your solution addresses a problem, what
is the value proposition that would lead customers – or someone else – to pay for
your solution, and how you are able to make money at a price they can afford
● Your greatest barrier with this story is convincing investors that you deeply
understand the needs of your customers, and can create a sustainable business
without exploiting them
