Presentation prepared by Baldwin Berges (http://www.bd-insider.com/), as part of the meet-up "Starting up in Belgium" which took place on May 13th., 2015 (http://www.meetup.com/Brussels-Entrepreneurship-and-Innovation-Meetup-Group/events/222177335/?comment_table_id=448959237&comment_table_name=event_comment)
3. BD-Insider
The world is a crowded &
noisy place…
…make it easy for
investors to discover you!
4. BD-Insider
Most ‘investors’ you meet are usually
venture capital funds, private bankers,
intermediaries or family offices.
This means they usually have no final
decision power.
They need to convince others to consider
your opportunity.
5. BD-Insider
This means you need to equip them with
compelling and comprehensive content
that will make that easy for them!
In other words you are giving the
‘investor’ a ‘mandate’ to represent you.
‘Compelling’ and ‘comprehensive’ also
means that they don’t feel like they are
risking their reputation as an advisor to
their investors.
6. BD-Insider
Equipping the investor
Apart from the ‘WHY’ of your proposition, there are 4
things investor absolutely need to know before they
are confident to take things further
1 Execution
2 Upside
3 Downside
4 Exit
7. BD-Insider
What I have learned after more than 20
years of working with investors
Even professional investors are mostly driven by emotion rather than
rational thinking.
Fear & greed drive the decision making process (eg. buying high,
selling low and FOMO).
Raising capital takes time and the only way to get results is by
keeping the attention of prospective investors by consistently
following up.
This business is personal because it depends on building trust
between individuals
8. BD-Insider
The investment landscape is
rapidly changing
Disintermediation: professional investors are losing terrain in an
increasingly peer2 peer world.
The VC myth: venture capitalist have funded less than 1% of US
startups. Most VC funds have barely even reached break-even over
the past 15 years (Harvard Business Review).
Crowdfunding and angel investor platforms are enjoying
exponential growth. These investors are essentially non-
professionals.
9. BD-Insider
The investment landscape is changing
very fast
Peer2Peer lending is one of the fastest growing industries today
thanks to a low interest rate environment and mistrust in financial
institutions
Conclusion: raising capital is increasingly about telling stories online
that are easy to understand by non-professional investors!
Capital raising is moving online so the ability to stand out and
become remarkable with digital content is key to successfully
attracting capital
15. BD-Insider
Humans are more wired to
consume stories than to read,
write or even consume more
abstract ideas or concepts
And guess what?
Investors are humans!
26. BD-Insider
Define the problem you are
Show the solution
MTPWHY UPSIDE+ +
Explain the MTP. What the future could be like with
the solution?
Briefly describe how the solution will make money
What is the solution worth - size of market? money
27. BD-Insider
Why is solving the problem important to you and the world
Your challenge - what do you need to avoid the downside
UNDERDOG DOWNSIDE+
How will you execute when you get what you need?
What other challenges have you overcome? What did
you learn from failure? Why is it relevant?
28. BD-Insider
EXIT
Clearly establish the financial perspective for investors
Short term exit strategy? Acquisition play, IPO?
Long term perspective. Will there be enough cash flow
for dividends?
Not clearly establishing these expectations will make
you and/or the investors unhappy
37. BD-Insider
That’s why you need a system that
will make the follow up a consistent
value-added experience for the
investor.
Raising capital is usually a lengthy
process that requires stamina.
38. BD-Insider
An automated sequence to keep an
investor dialogue alive after the first
encounter.
Equipping the ‘investor’ with content that
is easy to share with the final
decision makers