How to Prepare an Effective Investor Pitch

1. Prepare an Effective
Investor Pitch
Neil Davis
TEDCO
September 17, 2015

2. The Basics
11 slides; 8 minutes (adjust as allowed)
Short bullets, no paragraphs; Keep it simple!
30 pt. font is ideal, 22 pt. minimum
Use consistent theme, font & color.
Include your logo on each slide
Do a final on-screen check
Goal – get to the next level!

3. Slide 1: Title
Company name
Your name, title, contact info.
Web site
Try to tell a short story about your venture
For example, “You may be wondering why my
Company is named NORA LLC”.
For example, “Think of us as the EZPass of
nutrition”.

4. Slide 2: Problem
Describe the “pain” you are addressing.
Describe the “pain” in personal terms.
Quantify the “pain”.
Your goal is to create immediate audience
buy-in!

5. Slide 3: Solution
Explain how you will alleviate the “pain”.
 What are you selling?
 What is your value proposition?
Articulate value proposition thru customer’s eyes.
 Decrease your customer’s cost (be careful w/ labor)
 Increase your customer’s sales
 Increase the satisfaction of your customer’s customers
At this point, audience assumes technology works.

6. Slide 4: Business Model
How will you make money?
 Who pays?
 Payment structure and is it aligned with the customer?
 Reimbursement codes?
What are your distribution channels?
 Manufacturing
 Inventory
 Warranty
What are your gross margins?

7. Slide 5: Underlying “Magic”
Describe the technology (“secret sauce”, “magic”,
etc.) behind your product or service.
How is your technology protected (patent, speed-to-
market, continuous innovation, etc.).
How was your technology acquired (license vs. in-
house development)?
How is your technology maintained?

8. Slide 6: Market & Sales
Market
 Total market size
 Addressable market size
Validation
 Market research to support customer need.
 Don’t forget the “do nothing” alternative.
How will you reach the customer?
 Initial launch
 Sales channels
 Marketing

9. Slide 7: Competition
Demonstrate that you know your competition
Your Company Competitor 1 Competitor 2
Installed Cost  
Operating Cost  
Speed  
Waste 
Safety  

10. Slide 7: Competition
Demonstrate that you know your competition
Performance
Your Product
Competitor A
Cost Effectiveness
Competitor B
Competitor C

11. Slide 8: Projections
Year 1 Year 2 Year 3 Year 4 Year 4
Units 20 40 80 160 320
Revenues 100 200 400 800 1600
COGS (25) (50) (100) (200) (400)
Gross Margin 75 150 300 600 1200
SG&A (150) (200) (250) (300) (350)
EBIT (75) (50) 50 300 850
R&D (100) 0 (500) 0 0
CAPEX (50) 0 0 (150) 0
Begin Cash 0 75 25 75 225
Investment 300 0 500 0 0
End Cash 75 25 75 225 1075

12. Slide 9: Milestones
Where are you right now?
What does the near-term future look like?
What will you do with the $ you are trying to raise?
Some presenters creatively combine this information
with Slide 8.

13. Slide 10: Team
Who are the key players?
 Founders
 Management
 Board of Directors
 Board of Advisors (what do they do?)
 Investors (if any)
Are there any “rock stars” on the team?

14. Slide 11: Summary
Contact information
Summarize Investment Thesis
 Technology
 Market
 Revenue
 Total raise

15. Questions?

16. The Video Presentation
What’s unique about a video pitch?
 No white – go with pastels.
 No bold plaids or patterns.
 No sunglasses or photo-gray lenses.
 Maximize facial expression.
 Minimize hand gestures.
 Practice in front of a mirror.