By now, you would have heard of the show Shark Tank. This television series based on hopeful entrepreneurs, pitching their idea to a group of millionaire investors, is an inspiring watch. The panelists on the show are an impressive line: Naomi Simson, founder of Red Balloon, John McGrath of McGrath Partners Real Estate, Andrew Banks from the recruiter Morgan & Banks, Janine Allis founder of Boost Juice and Steve Baxter, IT entrepreneur. Funding is a big hurdle for successful commercialisation. Considering investors and venture capital firms are common sources of capital, presenting a good pitch is pivotal for communicating the benefits of your medical device and ultimately convincing an investor to take a risk on you. Consider these points when putting together a pitch:
Less is More
Keep your Powerpoint deck simple. Do not overload it with slides, then run out of time to speak through it all. Present your business in a manner that’s succinct and to the point. If an investor is interested, you can always provide additional information later.
Provide realistic projections
Base your projections on fact. Do not show the investor unrealistic projections, particularly when your company is at $0 revenue. You need to be able to justify your projections and assumptions. Refrain from saying unrealistic statements such as ‘we have no competition’ or overestimating the size of your market. Most investors are seeking a low-risk business that solves an existing problem. An experienced team, real world experience and cash flow are more enticing than an overblown forecast.
Do a Demo
If you can, demonstrate your medical device. A demo is worth a thousand words. But make sure it works well and looks good.
Research, Research, Research
Perform some due diligence before the meeting. Research the investor, his portfolio and his investment interests. There’s no point pitching a medical device to somebody that does not have an interest in the area.
Understand your Product & Business
An investor wants to know that you understand your product, your business and the market that you’re launching into. Be prepared for questions. A good entrepreneur should be able to explain how their medical device is differentiated from competitors, understand the risks of the business and be able to communicate a coherent business strategy in all aspects including marketing, customer acquisition, sales strategy, etc.
How will the investor’s funds be used?
Investors want to know the current stage of development of your technology. They want to know how their capital will be used and whether you have estimated realistic capital requirements.
At Inner Maven we have assisted clients in approaching potential investors, collating pitch decks and have successfully presented pitches to win millions in investor funds.