Israel Marketing and Business Development

Home Page

Newsroom

From the Top

Business Buzz

Knocking on Opportunity's Door, Part 2

You've been invited to make that all-important introductory presentation before a VC fund. You walk through the door. The future of your venture depends on what happens next. Coming prepared is the key to your success. Homework should be done in two areas: (1) preparing yourself and your team, and (2) preparing an on-target PowerPoint presentation.

Be Prepared

This is the second in a two-part series. Read the first article.

From the first handshake on you will be under the microscope. You'll typically present to one to three people in your first meeting (up to five if they're really interested).

Throughout the entire meeting remember to project genuine enthusiasm for your venture in every gesture you make and sentence you speak. Convey that there is a real problem and a real solution — yours. Communicate that you and your team are qualified, have practical experience and leadership skills, and that you work well together. Most importantly, express that you are determined to succeed.

Often handouts and visuals are helpful in explaining the more obscure points, especially technologies. Make sure to bring enough brochures for everyone. If using photos, they should be large enough for everyone to view and, if possible, framed for easy handling. If you have a prototype or model, be sure that it works properly and is an asset to your presentation. If you think you may have to apologize for how it looks or works, leave it at home.

Practice, Practice, Practice

Make sure your limited time on center stage is as effective as possible. Anything less than a silky smooth presentation immediately bores listeners and turns them off. Very few people have a natural ability to stand up and knock 'em dead without preparing beforehand.

Practice your presentation until you can repeat it in your sleep. Be prepared for questions that come from left field. However, don't lock yourself into the text you've prepared. Think "out of the box" to anticipate issues that may arise. Find a "tough" audience to rehearse on, and let them ask the really hard questions. You'll thank them in the end.

A Power-ful Point

A 35- to 40-minute presentation is typically between 12 and 15 PowerPoint slides. Text on the slides should be bulleted items that highlight the major points presented. Explanations and descriptions are presented orally. You don't want your audience reading your slides rather than listening to you (and you shouldn't be reading from your slides either). Use graphics to emphasize, demonstrate, and generally pep up your oral presentation. Use animation and video effects sparingly.

There are five basic topics that should be covered in the presentation slides:

		Problem/Solution (2 to 3 slides). What is the scope of the problem? Who stands to benefit from a solution? How do your target markets currently solve the problem? What is your solution and why does it solve the problem better?
		Technology/Product (2 to 3 slides). Briefly describe your technology in clear and simple language using graphics, charts, and diagrams. Mention intellectual property protection. Describe the product (or products) resulting from your technology. How it will be manufactured and the different models or versions offered? Emphasize your product's special features and how they make your product better than others.
		Company/Management (2 to 3 slides). Be sure to include the year your company was established, its location, and distribution of ownership. Include a short forward-looking statement detailing future ambitions and "what you want to be when you grow up." Company milestones for the next few years should be projected in a timeline. Dedicate a slide to key management only, not the whole staff. Include professional skills that have bearing on the project and those past achievements relevant to the current venture — not the entire CV. Remember that most VCs view the people as the most important asset in a new venture. Technologies come and go, but good people adapt to changing market conditions. If you lack vital staff, explain that you are currently seeking to fill the relevant positions.
		Market (2 to 3 slides). Present a brief market overview mapping out target markets and citing market potential from respected sources. Estimate total market size based on factual data. Provide an industry map, showing how product travels from production to end-user. Here is where you list your major competitors and never say there are no competitors. Your target market is spending money on something that claims to answer their needs. Make sure you identify what it is. Also never make negative statements about competitors — instead, describe how you effectively solve the problem.
		Business Model/Financials (2 to 3 slides). How is your business going to make money? Direct sales, licensing, royalty agreements? Here is where you spell it out. List major financial milestones, relate to investors' return on investment (ROI), and provide a sales and profits chart.
		Closing (1 slide). Don't forget a closing statement. On this slide, invite prospective investors to join your venture. Tell them what you are seeking — $X million — and explain how the money will be used.

Although PowerPoint software is user friendly, to really make the most of the program's capabilities, a level of experience is required. Professionals who have experience in both business consulting and marketing communications can be a big help.

Optimism Never Hurts

Now that you have the basics under your belt, go out and knock'em dead. Remember, if at first you don't succeed, try again. It only takes one VC to turn your project from an idea to a reality. Keep on trying for as long as you believe in the value of your venture.