5 Investor Development Equity Capital Raising Presentation Tips For Principals

Raising capital is a critical skill and requirement for investment principals. The organization and management of this process is challenging. The experience, credibility, and skill needed requires years of practice, exposure, and serious focus. Most never really feel fully comfortable performing the effort. Developing a solid concept and format eases the process dramatically.

Tip #1: A standard presentation organization helps get the process off to a good start. I typically include an opening chart that gives a “teaser” description of the investment. Next, a very brief chart about the principals allows for introductions at the presentation. A good investment requires a positive economic environment. Because of this, I always lay out the situation framing the investment. Next, cover the basic terms of the investment. Describe what the investor will be investing, key terms effecting capital, and what the investment purchases. Explain management, operations, and funding for these items. The closing section includes sources and uses, financial terms, return expectations, and the exit.

Tip #2: Don’t write a presentation and simply show up for the meeting. Preparation is key. Realize and ensure that the presentation is not the in depth description. The in depth description should reserved for the business plan and subscription agreement. That said the presentation if the investor engages will be practically as in depth as the business plan in that you should seek to fully engage the investor, provide and explain the details and intricacies of the investment. This means preparation includes preparing to drive home the key points and ensure critical questions are answered.

Tip #3: Complete a Q&A preparation. Spend time developing the questions and issues investors will raise. Prepare clear, cogent, effective answers addressing each question and each issue. If necessary, bring background material to address the issues.

Tip #4: Seek commitment at the meeting. Don’t go to the trouble delivering a well prepared complete presentation and fail to ask for the sale.

Tip #5: Have a clear plan to follow up and complete the closing process. Investors are busy people. Executing a clear effective plan communicating with them and setting the clear expectation in their mind of what that plan will be says a great deal about your organization and respects the limited time that they have available.

Principals should never give a presentation without adequate preparation. Having a plan for the presentation will organize your thought process, make your points more compelling, and significantly increase your opportunity for success.