W
e often face to client requests to prepare an investment teaser, or overview of a business project, or real estate, or a manufacturing asset. At a first glance, it seems the same as startup pitch deck with its specificity of structure, and advices given from the internet. But there is difference in details.
It does not matter either we pitch an idea, or a tested real revenue generating financial model, we pitch our belief to successful result, supported by our experience, and proven tests of our business idea, or business model. From this point of view our goal is to ensure a potential investor to take a risk of investing into your company or project. People on the investors side understand that almost all figures on your slides are very prognostic, approximate, and mainly based on market estimates, analytics, and surveys. So, all you need is to prove that your idea is prompt, viable, and you have enough brains to grow it into a new Facebook.
When we create an investment teaser or proposal of one of those companies, or assets, which are often operate on Red Ocean market for years, we need to put aside the internet recommendations of How-To Create an Investor Pitch Deck. Our story is not about passion, emotions, and risks then. It is all about facts, calculations, deep marketing studies, and absence of risk. And it is usually about at least $X00.000.000 investments.
Here is what to focus on, when you need to attract investment capital to your hypothetical facility that produces one million tons of steel annually.
1. Focus on digits and facts, not expectations
It is important to have, and to study the IFRS report for at least 5 years to evaluate the company success on market and to prove its financial stability. You will also need to perform the enhanced marketing analysis which covers at least 10 years past, and future period for at least investment payback horizon length. All this information will give your investor the brief understanding of where your company is now, and how it looks like comparing to overall market.
2. Predict risks and theirs management, not future revenues
It is hard to predict if something else, but COVID-19, will happen in future, and will ruin a business in a moment. But it is possible to predict how to payback investments in this case. The more risks you manage, the more persuasive your presentation is. Do not think of market attack, think of how to protect your back. SWOT analysis is just a little part of this process.
3. Focus on conclusions and conciousness, not storyline
Those people, who look at your slides, know much about money making, as far as they made them a lot. You can be sure that your teaser will be gone over in details, and compared to own market studies, and estimates. Therefore, each of your slides should conclude the right message, based on facts and digits you use. Do not care of a slides sequence. Care of all the important conclusions are included.
4. The key is content and functionality, not creative design
There are many people who will study your investment Proposal on its way to real capital investment. Some of them are aged 70+, some are 30 y.o. young managers. Your goal is not to impress all these people and call for right emotions, as it often happens with startup pitch decks. Your goal is to be as clear and specific for everyone, as possible. At the same time, design of your presentation should look relevant to your investment goal. A hundred-million-dollar investment offer made on standard Power Point template looks irrelevant and fun. If you need to get investments, invest to your proposal first.
5. The goal is to raise interest to details, not to raise investments.
Nobody makes a final decision basing on teaser. We need to look the full movie to ensure if it is a masterpiece. So, by default, if you have an investment ready-to-go teaser, you should have a business plan by default. If you still have no one, this looks very suspicious for any investor. Be proactive.
