The rigor of the Investment Track will assist the entrepreneurs in refining the following documents and presentations to the investor. There is no hard and fast order to these items other than they are considered in a somewhat natural order of events. Any or all can be developed by the entrepreneur in the order and at the pace most comfortable to the entrepreneur. All of these are required by the Investment Track:
1. Elevator speech – This is a 30 to 45 second oral statement delivered by the entrepreneur to someone who asks, “Tell me about your company.” The message is crisp and will catch the attention of the investor. The purpose is to get the investor to issue an invitation to “…send me something to read, because that sounds very interesting.”
2. Executive Summary Package – This is a key document. The interest of the investor is typically won or lost on this document. The Executive Summary Package contains three critical components. These three components will become part of the full Business Plan.
a. Executive Summary (5 pages) – This is an overview of the venture. There are a number of elements, which will include a description of the “secret sauce,” competitive landscape, sales & marketing strategies, etc.
b. Management Team (1 page per team member) – More decisions “to invest” or “not to invest” are dependent on the strength and experience of the proposed management team than any other factor.
c. Pro Forma (3 years out) & Assumptions (1 page) – This will be a condensed version of the full Pro Forma that may be contained in the full Business Plan. The most important aspect of this Pro Forma is not the actual numbers, but, rather the assumptions that are driving the numbers. If the investor does not believe, or disagrees with the fundamental assumptions, the entire Executive Summary Package will lose credibility.
1. Customer Brochure – Using simple desktop publishing software, a brochure should be produced in the format and style of a typical sales brochure (1 – 4 panels). A brochure with graphics and concise text allows an investor to quickly understand the technology, its features, functions, and benefits. This also enables the non-technical investor to more easily understand the ‘value proposition’ of the proposed technology. This is particularly important in the bio-sciences and the information technology disciplines.
2. Business Plan (~25 pages) – This is the document with which everyone is familiar. SATAI will review and critique the business plan, offer suggestions, and in general make recommendations about a number of topics that should be discussed. In general, the full Business Plan will need to substantiate everything that has been stated in the Executive Summary Package – and more. It is important to remember the full Business Plan is perhaps the primary document used by investors to decide if they wish to move forward.
SATAI will also help the Client to ensure that the material in the full Business Plan is presented with a view to “selling” the venture. Attention will be paid to graphics, appeal, and overall appearance of the Business Plan. The objective of the Business Plan and the Investor Presentation (discussed below) is to continue the interest of the investor in moving forward with the Client.
1. One Page Summary – This is a modification of the Elevator Speech but is to be used in two situations. Many investors do not want a lengthy business plan. The one-pager is a quick summary, which can be used to invite the investor to a funding forum or entrepreneur presentation.
2. Investor Presentation – This is the most important selling exercise. SATAI will assist the Client in preparing a presentation of not more than 15-20 minutes in which the venture is presented. Additionally, the entrepreneur will be drilled in how to handle difficult questions and difficult potential investors. Form and content will be stressed, as well as style, delivery, and personal demeanor.
As this presentation is perhaps the one and only opportunity to present to a potential investor, this is the only element contained in all three Tracks that is measured on a pass/fail basis. This presentation is made, on a trial run basis, to the SATAI CEO. The CEO will either allow the entrepreneur access to the SATAI investors or not. If not, SATAI will continue to help the entrepreneur improve and refine the presentation until it becomes passable.
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