Posted on: July 22, 2020

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Running a financing process can create additional opportunities beyond raising capital. It also presents a chance to create new partnerships. The right investor can significantly boost the strength of your network which helps in recruiting employees and acquiring customers. Investors can be a source of expertise and network intelligence, so you can better prepare for the likely challenges and opportunities ahead.

This is not meant to be a comprehensive guide to fundraising. This post is focused on the content you need to create in order to run a fundraising process using extracts from the Xergy Group investment deck.

There is no single formula for a pitch deck, but Gneiss is made up of finance and industry professionals who, collectively, have over 250 years of experience in multiple jurisdictions and industries. We have an extensive network of relationships with investors and financiers, providing us with the in-house capabilities to ensure your shareholder mix springboards the company into its new chapter.

Slide 1: Investment Thesis

Your first slide should convey the value proposition in roughly 3 to 10 bullet points and the rest of book should be spent supporting these statements. How do you become 1 out of 10 that matter in a 2 to 5-year timeframe? Those are the key points you need to steer into at the beginning of your pitch. 

We used quotes to show that we were talking to relevant industry players who valued our products and could give us feedback to allow us to enhance them.

Slide 2: The Product

What is the product? Why is it new? You have to be clear and if possible, show don’t tell.

Slide 3: Total Addressable Market (TAM)

Investors want to understand the upside potential and what market share you think you think you can realistically achieve.

Slide 4: Market Overview

Show that you’re paying attention to the market. Instead of merely saying that we know product-market fit is key, show that you did the work.

Slide 5: Competitive Advantage

Founders often say they have no or little competition, which is often an incorrect assumption. The market is efficient, eventually — if a valuable opportunity emerges, others will discover it. To build credibility with investors, you want to show that you understand the competitive risks and show why you’re going to win.

Slide 6: Risk Factors and Mitigation

Steer into your investors’ objections. There will be issues that are potentially problematic for your financing — address them head on. Explicitly identify the risks that could thwart your success and how you will mitigate them. And instead of waiting until investors ask about your risks, share them proactively so you build trust and confidence.

Slide 7: Revenue Model

Clearly illustrate how you will monetise the product or service. A potential investor needs to understand how you will make them returns and what their exit opportunities will be.

Slide 8: Roadmap

Showing specific target dates in a roadmap shows that you have a plan and a strategy. However where such dates have variable dependencies, it is important to demonstrate what flexibility you have to execute such plan/strategy. Having a roadmaps doesn’t mean that you have to stick with your decisions. Good investors expect you to evolve your plans as you figure out the optimum strategy to grow your product in the market.

Slide 9: Forecasts and Assumptions

Show the key assumptions behind financial projections and use as much data and examples as possible to support your economic model going to profitability.

Slide 10: Team

After showing what the market is and what you can do, now you can show the people who can make it happen — the key leaders of the team.

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Kenneth is an experienced M&A and corporate financial analyst with direct experience in the upstream exploration and production business and strong commercial and finance experience in renewables and oil & gas. Kenneth’s most recent experience was as a Financial Cost Engineer with Babcock UK Group. His early career experience included internships at a large UK-based legal firm, Shepherd & Wedderburn and a boutique investment bank, Hannam & Partners, focusing on business analysis, financial modelling and due diligence preparation. Kenneth holds a degree in Finance and International Business from the European Business School in London and is currently going through the Chartered Financial Analyst exams and earning an MSc in Corporate Finance.

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