Question

Topic: Taglines/Names

Help Me Create A Concise Pitch For Investors

Posted by allureint on 12/22/2009 at 6:10 AM ET 1000 Points
We are about to attempt a capital raise for our business, xxxx DNA Technologies and whilst I think the Information Memorandum is written quite well, its a struggle to explain in 2 to 3 minutes to a potential investor what exactly we do. . I dont want people to turn off cause they think it may be to complicated. Any help would be greatly appreciated.

Business information
We have 3 divisions:- Genetic Testing, predisposition and early diagnosis of a number of issues that include, cardiovascular disease, (diabetes, obesity etc) fertility issues, both men and women, predisposition to baldness amongst others. The other division is "Forensic DNA testing"services for Police, military and so on.
In Australia, the government health labs are primarily responsible for forensic testing but there is an opportunity for a private forensic laboratory which can be extremely efficient. The following is from our Information Memorandum:-XXXX DNA was established in 2007, with the view to develop a broad based, efficient DNA testing laboratory utilizing advanced technology platforms to service Australia and the surrounding Asian countries inadequately served by offshore facilities in Europe and the United States.
The commercial opportunity which underpins this business model comes from the following:
1. The rapid increase in the use and understanding of genetic testing and its’ results,
2. The escalating costs of conventional medicine and the need to develop personalized and integrated medicine approaches to diagnosis, prevention and monitoring of therapeutic approaches
3. The escalating costs of medication on national health systems and the potential for Pharmacogenomic tests to make drug use more effective.
4. The increasing awareness by an aging population for the need of healthier lifestyles to improve mid to late age lifestyles.
Genomics plays a pivotal role in enhancing the effectiveness of modern treatments.

XXXXX aims to be the pre-eminent DNA testing laboratory in Australasia. An early stage company focussing on five integrated business opportunities across three laboratory divisions that utilise two advanced genetic testing platforms, highly qualified staff and in-house mosaic IP. The business and revenue model centres on distribution and licensing agreements for its application specific, DNA test panels and contractual testing arrangements with strategic partners.
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RESPONSES

  • Posted by CarolBlaha on 12/22/2009 at 7:28 AM Accepted
    Your presentation does a good job of defining market, but you need to focus on what your company will do to capture lions share of market. And the profitability of this business.

    You touch on it with this line "The business and revenue model centres on distribution and licensing agreements for its application specific, DNA test panels and contractual testing arrangements with strategic partners." is added at the end -- it should be the main point.

    Let your investors know you know the market, you know how to create revenue, and you know how to take it to the bottom line.
  • Posted by Jay Hamilton-Roth on 12/22/2009 at 8:43 AM Accepted
    Investors are looking for not only what you do but how they can make money. Are you currently running a profit and need additional funding to grow? Do you have a number of well-known client contracts that provide "social proof" to investors? How much do you specifically need ... why ... and for how long? How much money has already been invested?

    You mention 2 basic key points that should be in your quick pitch:
    * Your company provides DNA testing in Australasia (to replace inadequate offshore DNA testing labs)
    * It was established in 2007
  • Posted by Gary Bloomer on 12/22/2009 at 9:02 AM Accepted
    Dear allureint,

    Hot on the heels of NuCoPro (Gary Rosensteel), and with three divisions, offering three different services, might it serve you better to go with not one but with three different documents?

    Gary obviously has more experience on this than I do, but I think he’s right when he urges you to pick one area. Do that, first, then expand later and use that success of your flagship as social proof to build the next phase.

    Non profits do this with capital campaigns and it’s an effective method of bringing investors and donors on board.

    If I’m an investor with a foot in the law enforcement camp, I don’t really care about a cure for baldness.

    Likewise, if my investment predisposition lies in fertility treatment, I care little about forensic DNA testing.

    And so on.

    Phase things in one at a time and you do more to match each document (and each goal) to a precise target of reader, thereby giving each story more weight.

    In a business and marketing plan like this it’s not always the financials and graphs that pull in the people with deep pockets:
    it’s the story you’ll be telling that pulls people in.

    The more each tale relates to each kind of reader/investor, the more each reader/investor sees themselves as part of your future.

    When you split the whole story up into three smaller stories (and as three separate documents) you give people the power to pick what’s of interest to them.

    True, this could all go into one publication and people cold flick to the relevant page to read the stuff that interests them.

    But giving people something that’s more in tune with their specific interests as a stand alone piece gives more weight to the smaller stories, thereby making the story more relevant, more compelling, and more likely to connect.

    I hope this helps.

    Gary Bloomer
    Wilmington, DE, USA
  • Posted by NovaHammer on 12/22/2009 at 10:02 AM Member
    As with any Market: also tell people your track record and awards and unique leading edge tech. details.....Testimonials are great also from previous contracts and those who have returned for more work with you.

    Any professional affiliations with High Profile International agencies also gives investor/street cred.

  • Posted on 12/22/2009 at 3:26 PM Accepted
    You have gotten advice here worth thousands of dollars. I know, because I've written funding proposals for entrepreneurs dozens of times.

    The key, as many have said, is to remember that you are marketing yourself (and your company) to investors. They want to know how much money you need, what you're going to do with it, how much money they'll earn, how soon they can recoup their initial investment, and how you KNOW you can deliver on your promises.

    All the stuff about market segments, different divisions, technology, etc. are scary ... because they suggest you're more focused on the pieces than on the big idea (for you and for them) -- making money so they can get a big return on their investment ... quickly and with a minimum of risk.

    If getting the funding is really important to you, hire someone who knows how to present to investors and have them create the proposal document for you. You're too deep into the trees to be able to see the forest.
  • Posted by allureint on 12/22/2009 at 7:33 PM Author
    Wow, all of you guys are incredible. Shame my budget doesn't extend to hire this team! I see the underlying message is the same and of course correct. More than 2 years in this space and it is easy to be stuck in the middle of a massive forest. So thank you all for that. To Randall, sorry what I meant to say in my question was, 'When you are trying to get the appointment with a potential investor to do the full pitch, what should i be saying in that 2 to 3 minutes?" That for me is the scary part, I definitely don't want to sound like we are all over the place which when i sit back now and read what we say and compare with the answers above - I see this is how we sound. Thank you - You are all amazingly talented and I really appreciate your invaluable input. Would like to digest over the next few days and come back to you.
  • Posted by allureint on 12/24/2009 at 5:07 AM Author
    Hi Marcus,
    Yes agree there is some fantastic advice above.
    Thank you to you also. I have lived and breathed dna testing and the potential markets in Australia and Asia for nearly 3 years now. I think one of the issues occurs when you don't stop long enough to look at how it is perceived on the opposite side of the table. We know our scientist can develop a test for any number of conditions, to me this is a good thing but as pointed out above it comes across as lack of focus to those that dont understand how simply the suite of tests can be added to.
    The other issue we face here is that we are so far behind the US and Europe that the figures that support the potential growth of the market all apply to those markets.
    We have the following quote buried deep in our IM, perhaps it should now be moved to the front page!
    “Predictive screening for chronic diseases like diabetes and heart disease is an untapped market opportunity set to rise rapidly (250%).”
    Source: Fuji Kenzai Report. (Extract from Report Titled: USA DNA based diagnostic and Test Market).
    (This is an area where we will be testing)
    So I know I can answer all the questions you raised and I wanted to thank you for raising them for me. I will now re read the IM and make sure those things are easy to find as I agree they are the most important.
    Have a very exciting intro to a potential investor in Melbourne early Jan so will get my docs in order before then. thank you again. Jacquie :) Merry Christmas all - will close the question 27th December.
  • Posted by NovaHammer on 12/24/2009 at 7:47 AM Accepted
    Now that you know all this and if you would like to practise, visit https://www.15secondpitch.com/new/ and give it a try by answering a few questions.

    I didn't see this posted above yet....

    It is interesting how busy it can 'all' sound when you finish.

    GoodLuck.
  • Posted by allureint on 12/28/2009 at 10:43 PM Author
    Hi All,

    Just wanted to say a special thank you for the fantastic advise I have closed the question and I understand the points get split across the accepted answers. I have written to marketing profs requesting info as to how to add extra points but have not received a reply to this question. If anyone knows please let me know as I feel lousy that you all get so little points.

    Once again thank you.

    Jacquie
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