1.

Follow or Tweet: #ent101

2.
Why do we need the tools?
Solicit Communicate
investment to partners
Communicate Communicate
to employees B-plan to customers
Exec
Summary
PPT Deck
White paper
Slide 2

3.
Communication tools: how to make your
idea credible and understandable
 Investors must understand what you do and who cares
Focused Company Clear Investment
&
Strong Management Message Opportunity
Slide 3

4.
Guest Speaker 1
http://www.youtube.com/watch?v=nkuOuxRD1Bc
1:32-2.28

5.
How do the tools work?
 The tools EXPLAIN and ILLUSTRATE:
 What is unique about your business?
 Who cares?
 How will you execute?
DIFFERENTIATED
SUSTAINABLE
VALUE PROPOSITION
Slide 3

6.
Selling vs. Planning
VS.
Slide 6

7.
Principles for Business Planning and
Communication
No hype. Let investors become enthusiastic on his/her own
FACTUAL
Business planning is an iterative and adaptive process
DYNAMIC
VISUALLY A clear, precise structure is a courtesy to those investing
COMPELLING their time in reading the proposal
CONSISTENT, The storyline and all the facts presented must fit together
CONCISE, CLEAR and generate a well rounded impression
Acknowledge style, recognize knowledge gaps and biases
AUDIENCE-CENTRIC
Those who allocate investment resources rarely are
EASE OF technical experts for the technology used in the proposal
UNDERSTANDING
Slide 7

8.
YOU are the most important
communication tool
 Guest Speaker 2: David S. Rose, an
Inc. 500 CEO and serial entrepreneur
himself, who has been described by
Crain’s New York Business as “the father
of angel investing in New York”, and by
Red Herring Magazine as the “patriarch of
Silicon Alley”.
http://www.youtube.com/watch?
v=lzDBrMisLm0&feature=related (from 1:36-5:02)

9.
Make your message memorable
 ENGAGE your audience
 Make information meaningful to them
 Case studies
 Address knowledge gaps
 Visuals, charts, graphs
 Let them arrive at their own conclusions
 Pace your delivery
Slide 8

10.
% of Advertising Online Example
Total US Advertising $295 B
Local $95 B
National $200 B Privacy technology
2008
to close the
$5B 11%
5%
Local National
$15B Gap
2014
$15B 25%
Expanded Market for Ad Networks
12% New Revenue for ISPs
Local National
Source: eMarketer 2008

11.
Know your audience
 Speak to your audience in language that they understand:
 Institutional investor – do not speak ‘techie’, tie everything
back to money
 Strategic investor – may be more technical; will be interested in
your ideas as they impact their business
 Strategic Partner – mix of technical and business; understand
how a relationship will be mutually profitable to both parties
 Angel Investors - access their background; understand their
interests
 Customer – understand their industry and pain points
Slide 11

12.
Social media tools
 Create an engaging conversation with
bloggers and customers
 Let peers, partners, journalists and
investors “discover” your story through
the social web
 Show what you do through images, video,
links; make it easy to find through SEO;
 Many access points: LinkedIn Group,
Twitter stream, YouTube, Flickr Gallery,
Wikipedia

13.
Example
http://www.youtube.com/watch?
v=nkuOuxRD1Bc
2:47 – 4:22

14.
Example: Total Addressable Market
$15B Local Gap Online Represents
2014 $7.5B expanded market for Ad Networks
$6B new revenue for ISPs
Local Ads
$100B $1.5 Billion for our enabling technology
Total US market for our enabling technology
$1,600
$1,200
Millions
$800
$400
$0
2009 2010 2011 2012 2013 2014
Source: Based on eMarketer 2008 data

15.
Example: Accessible Message
Opportunity
XYZ Inc. medical device startup, is based on the premise that
image guidance will be a key element in the successful
deployment of emerging minimally invasive therapies
over the next decade.
Product and Benefits
By providing 3D imaging at low cost, we aim
to make the procedures of the 21st century safer,
faster and cheaper with better success rates, fewer
complications and shorter hospital stays.
Slide 15

16.
Communication tools help you build
relationships
 Be strategic about what you provide and when
you provide it
 Not everyone should see your white paper or business
plan
 Leave some details for later, don’t give away everything in
the first meeting
 Your documentation should radiate
professionalism
 Ensure accurate grammar, spelling, diction, illustration,
layout, etc.
Slide 16

17.
Myths and Truths
Choose what You only have
MYTHS…
TRUTHS…
tools to use and 30 seconds to
with whom get an investor’s
Should entice attention
the investor into You should start
asking for more by building your
Building your business plan
communication Have all your
toolkit is an tools ready to
iterative process deploy
Slide 17

18.
The Tools You Need to Raise Money
http://www.marsdd.com/entrepreneurs-toolkit/
articles/Investor-engagement-The-tools-you-need-
to-raise-money
The Tools
Slide 18

19.
The Elevator Pitch
Slide 19

20.
The Elevator Pitch
 What:
 A 30 second overview of your business concept
 Why:
 To get a follow–on meeting
 When:
 In a cold call to an investor, customer, potential partner, etc.
 Good for networking at trade shows, business functions, etc.
 Dos and Don’ts:
 Do not spend forever practicing and refining this – should come naturally;
 Figure out a few key messages you would like to get across to use as a loose
script
 Distribute key messages to outward facing employees – standardize message
Slide 20

21.
The Elevator Pitch
ABC Inc. is a location-based advertising
PAIN POINT company focused on bringing
A need for…
hyper local targeting to any website.
Through a unique privacy architecture,
Inc's technology allows media companies
and advertising agencies to accurately
VALUE reach the most relevant and responsive
PROPOSITION
Allow one to… demographics online.
Slide 21

22.
The Executive Summary
http://www.marsdd.com/entrepreneurs-toolkit/
articles/Investor-engagement-The-executive-
summary.html
The Executive Summary Template
http://www.marsdd.com/entrepreneurs-toolkit/
articles/Investor-engagement-Executive-summary-
template
The Executive Summary
Slide 22

23.
The Executive Summary
 What:
 3-5 page summary of your technology, product, sales plan, revenue path and
financial requirements
 Why:
 A ‘teaser’ document meant to generate a request for more information or a
meeting
 Readers will want to get their head around the concepts quickly
 When:
 When you have a ‘warm’ intro or an invitation to contact someone
 Integral first interaction with an investor
 Rides the line between confidential and non-confidential – some degree of
trust
 Dos and Don’ts:
 Has to have the right emphasis given the maturity of the business concept
 Keep it current
Slide 23

24.
The Whitepaper
Slide 24

25.
The Whitepaper
 What:
 A fairly concise layman’s summary of your technology, product(s), the
uniqueness of the technology and products and the value proposition
 Why:
 Helps investors to understand how a concept or technology works
 When:
 After investors are curious about details or have bought into the big picture
business vision
 Dos and Don’ts:
 Put the whitepaper on your website
 Don’t go so deep as to give away all of your trade secrets/IP – consult your IP
professional
 Keep it as short as possible and fully explain all acronyms
Slide 25

26.
Elements of a Pitch Deck
http://www.marsdd.com/entrepreneurs-toolkit/articles/Investor-
engagement-Elements-of-a-pitch-deck
Building a Strong Presentation
http://www.marsdd.com/entrepreneurs-toolkit/articles/Investor-
engagement--Building-a-strong-presentation.html
The PowerPoint
Slide 26

27.
The PowerPoint
 What:
 A ~15 slide outline of the key aspects of your business plan
 Why:
 Provides an overview of the business plan in point form
 Allows people to absorb a lot of key information in a short period of time
 When:
 Usually the second piece of information an investor receives after the executive
summary
 Investors love these because they can flip through them very fast and get highlights
 Dos and Don’ts:
 Critical document in the fundraising process – present a sound story; make it look
good
 Practice speaking to it, preferably in front of friendly people who will ask lots of
questions
 Use graphics as much as possible
Slide 27

28.
The Business Plan
http://www.marsdd.com/entrepreneurs-toolkit/
articles/Investor-engagement-The-business-
plan.html
The Business Plan Template
http://www.marsdd.com/entrepreneurs-toolkit/
articles/Investor-Engagement-Business-Plan-
Template
Business Plans for SE and SPBs
http://www.marsdd.com/entrepreneurs-toolkit/
articles/Business-plans-for-SEs-and-SPBs
The Business Plan
Slide 28

29.
The Business Plan
 What:
 A rigorously prepared and executable description of how you will build your
business
 Why:
 This is your roadmap for how you are going to build your business
 Describes roles and responsibilities for building various aspects of the business
 When:
 When you have assembled enough solid information to write it
 Highly proprietary; later stages of diligence
 Wait for the investor to to ask for it
 Dos and Don’ts:
 Often made a condition of financing or a board action item
 Re-write with every major change in strategic direction
 Avoid the temptation to turn this into a sales tool – preserve its integrity as an
execution plan
Slide 29

30.
How to create your toolkit?
 Do not start by building your business plan
 You will not have the information you need
 You will examine issues out of priority
 You will expose lack of understanding
 Use the PowerPoint Deck as receptacle for all ideas and information that
comes to light – easy to manipulate, organize and adapt
 Build your executive summary and eventually your business plan based on
your PowerPoint deck
 Give investors your exec summary and offer to walk them through the
PowerPoint slides in person or on the phone
 Develop visual assets (diagrams, videos) to use on-line and in your pitch deck
Slide 30

31.
Advice from the Trenches
 Practice, Practice, Practice
 Different versions for different people
 Management vs. finance vs. technical
 Version control
 The main idea of all of this is to entice investors/
partners to take a deeper look
Slide 31

32.
Advice from the Trenches
 Do not overload the documentation
 Try to get across a few key messages instead of telling
the whole story
 Your audience will only absorb the key messages
 Templates exist for all of these documents
 Don’t re-invent the wheel
 MaRS has developed templates based on extensive
review of industry best practice materials
Slide 32

33.
Building Your Message
Idea# 1: “Don’t Dive Straight into the Technology” (Value Proposition)
 Don’t start with technology. Everyone has this. Instead create context.
 Understand your customer’s pain points and show them how you offer a value
proposition that is FASTER, CHEAPER, BETTER
Idea #2: Maintain A Degree of Focus & Consistency in your Message (Brand)
 Focus on just a few of the really good things you can do and lead with these
points.
Idea #3: “Personify your People” (Profiles)
 Profile Managers Backgrounds - Creates context for potential clients and investors.
Idea #4: “Provide Proof of Results” (Case Studies)
 Tell a story. Focus on Results and the overall customer experience. Use
testimonials.

34.
Outline
 Executive Summary
 Company & Opportunity Summary
 Product & Technology
 Market Size and Growth
 Sales and Marketing Plan
 Competitive Overview
 Operations Plan
 Management Team
 Financials & Investment Requirements
Business Plan
Slide 34

35.
Outline
 Company Description (1 paragraph)
 Company Overview, Management & Vision
(2-3 slides)
 Need & Existing Solutions (1-2 slides)
 Technology, Products and Product Rollout
(2-3 slides)
 Market Opportunity (1 Slide ,Graphical)
 Competitive Overview (1 Slide , Largely
Graphical)
 Sales Strategy & Channels (2-3 slides)
 Partnerships and/or Partnerships strategy
( 1 slide)
 Financials & Path to Liquidity (2-3 Slides
(Largely Graphical)
PowerPoint/Investor Deck
Slide 35

36.
Outline
 Company Description (1 paragraph)
 Basic Need & Company Solution
(1 paragraph)
 Technology and Product(s) (1 paragraph;
diagram)
 Value Proposition (couple of bullets)
 Market Size and Growth (diagram)
 Sales Plan (1 paragraph)
 Competitive Advantages (couple of bullets)
 Management (detailed bullets)
 Revenue Growth Projections (diagram)
 Financing Requirements (1 paragraph)
Executive Summary
Slide 36

37.
http://www.youtube.com/watch?v=nkuOuxRD1Bc
4:58-6.24
Be Yourself and Have Fun

38.
Veronika Litinski
Advisor, MaRS Discovery District
T 416-673-8113
E vlitinski@marsdd.com
W www.marsdd.com