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Making an Effective

Investor Presentation

About GEPI & ANGIN Indonesia

GEPI aims to catalyze Indonesias entrepreneurial ecosystem and to expand greatly the number of successful entrepreneurs, and was established in 2011 by a group of 13 prominent business leaders in Indonesia who form the Board of Founders.

A network of investors aiming to catalyze the ow of capital, mentorship, and connections to early stage companies across sectors

Agenda
Putting it in Context Developing the Content Making the Presentation

Agenda
Putting it in Context Developing the Content Making the Presentation

Coordinated Message of Your Business


You need the right message for the right audience at the right time clearly articulated and delivered with PASSION!

Core Concept Elevator Pitch Executive Summary Business Plan Investor Presentation

Where the Investor Pitch Fits


Angel Investment Process

Startup Applica1on

Ini1al Applicant Screening

Pitching Workshop

Pitches to Angel Investors

Due Diligence

Structuring the Deal & Investment

Initial screen based on business plan 15 minute presentation to a group of potential investors followed by 15 minute Q & A Based on presentation, interested investors will begin due diligence
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Investor Presentation Purpose

To convince potential investors of the value of your business, demonstrate the ability of the management team, and make the ask

What Investors are Looking For


Investors want to understand your business concept, how you intend to execute it, and why you are the team to do so
Ar1culate Your P O S T Problem Opportunity (market size) Solu5on (product or service) Technology Address The S T O R M Strategy Team Others in Market (compe55on) Resources Needed Milestones Reached

Agenda
Putting it in Context Developing the Content Making the Presentation

Building the Presentation


Three dened segments:
Introduction
10% of total speaking time, 2 slides

Body
85% of speaking time

Conclusion
5% of total speaking time 1 slide: conclusion

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Building the Introduction


Multiple purposes:
Get attention Establish credibility State goal of the presentation, e.g.
Introduce you to our company Looking to raise funds

Manage rst impressions Introduce team Set agenda with main points
If slide is omitted, the main points should be stated

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Building the Body


Contains your main points
Product and/or service concept Uniqueness, competitive advantage Business model Market Competition & Industry Management team Financials

Sequence is NOT pre-determined


What makes sense for your business?
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Building the Body


Presenting data
Repetition
Not overt we the best, we the best, we the best Subtle keeping in mind that this is game changing

Varied and interesting visuals


Pictures | Graphs | Charts | Diagrams | Tables

Varied and illustrative data Facts | Research | Quotes | Stats | News

Notes on Powerpoint slide transitions


Not always needed but always consider FLOW Use one transition, unless you have a good reason Do not use time-based slide advances
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Building the Conclusion


Last and lasting message to audience
Restate goal of presentation Review main points Ask for action (usually requested funds) Maintain credibility Maintain sense of goodwill Provide closure Ask for questions

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Content to Include
Pain and solution
Product/ service concept

Uniqueness, competitive advantage Business model Market Competition & Industry Action plan/ Milestones Management Team Financials, including exit strategies
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Market Pain
What is the pain in the market? Market need drives business
Products and companies do not create a market

What are potential customers doing now? Why is now the time for your business? Will this continue to be a pain? Know the difference between customers and users!
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Product and/or Service


Clearly describe what your customers will buy
Great time for passing around sample, showing prototypes, examples, or demos

State how your solution addresses the need Discuss the status of product development, e.g.:
Prototype in development Final product specs in Q3 Manufacturing contract nalized, etc
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Uniqueness and Competitive Advantage


What is primary competitive advantage? What makes the offering distinctive?
Technology protectable and protected Implementation land grab Execution performance (i.e. Starbucks)

How are you going to act on it?


Strategy 1st mover, fast follower, niche, etc

Differentiate: articulate what makes your solution different AND better than others, and why the advantage is sustainable over time
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Business Model
What is the business model?
What do you do? How do you make money?

What parts of the value chain will you be responsible for?


Our company
Technology Raw Materials Product Design Mfg Marke1ng Sales Distribu1on

Partners/ Outsourced
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How do you make money?


Product retail sales: using value chain Product internet sales: direct to customer B2B: commercial purchase on terms Advertising: provide ad space SCTV Licensing: per unit revenue, payable Consulting: fee for service or impact Services: per unit charges Transaction fees: per activity Subscription: content over time Afliate: referrals and partnerships -> Apple -> Dell -> Xerox, BASF -> Google, -> Music, movies -> McKinsey -> Lawyers & Accts -> eBay, credit card -> Kompas -> Amazon
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Target Customer
Is there an identiable, accessible buyer who is able to pay? Does full product address full market pain?
Are auxiliary features, products, services needed?

Reason to buy now?


Can customer wait a year?

How will you move from early adopters to the mainstream?


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In Discussion of Market
You must size the market and the segments From credible, citable sources
Summary of primary research

Using three credible measures


Total rupiah spent Rp 600 billion Number of customers 2,500,000 Number of units sold 10,000,000

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What if there is no data on market?


Get as close an approximation as possible Back into a number through other available information
Clearly state assumptions

Conduct some primary research Use a broader denition of your market


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In Discussion of Market
Understand advantages of large markets and segments
Multiplies successful players More exit opportunities More nancing sources

Do not offer the 1% solution


Why aim so low? How many customers is this?
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Competition
Who do you directly compete with? Who do you indirectly compete with? Whose products are you substituting? What will their response be? How able are they to respond?
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Competition
Does competition exist?
No identiable competition = No identiable market

Never say No competition Degree of competition can vary depending on


Improvement Evolution Innovation Revolution

What are your potential customers doing today?


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Competition vis--vis Customers


New technology with no direct competition MAY work well with early adopters But no direct competitors regardless of technology will be a tough sell to the majority of buyers Competition may depend on result of establishment of a format or technology
Electronic payment technologies Blue Ray vs HD DVD
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Alternatives to no competition
There are currently no identiable large players
Many small fragmented competitors can be good

Our research has not been able to uncover a direct competitor


Does this statement overlook the possibility of another (100) start-up(s)?

The closest competitive threat we see is XYZ


Acknowledges established players can move into identied markets

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Industry
What are the relationships in the industry?
Value chains
Suppliers | Contract manufacturers | Technologists Logistics partners | Sales partners | Customers

Financial Governmental and regulatory

How does this help/hurt your operations? How does industry attractiveness and dynamics affect exit?

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Action Plan, Milestones


Overview of timeline Demonstrates YOUR understanding of KEY issues for YOUR business Shows that the team knows what is whose responsibility
Only items that are your responsibility can be a milestone

Include product launch/rst sales in ANY discussion of milestones


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Management Team
Skill Ability Experience Previous experience as a team Drive, ambition Smarts Whats missing? Advisory Board adds what?
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Suggestion for management slide


CEO COO VP Sales M. Iqbal Peter Ng TBD Dec13 Ir. Ciputra Advisory Board Fajar Anugerah TBD Apr12
Rice farming Project management Rice Mill processing Computer programming Door-to-door, in-home marke5ng Indofood, consumer marke5ng ADM, ag & chem products Environmental protec5on Labor Nego5a5ons
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Financials
Need to demonstrate that your business model works Based on 4 sets of information
Income statement Balance sheet Cash ow statement derived from IS and BS Sources/ uses of funds snapshot in time

All work together and reect SAME assumptions

The Good, The Bad and The Likely


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Financials
Discuss relevant, most interesting items Presentation can use
Projections Graphs Unit costs
First sales | Breakeven point | Protability | Exit & return

Discussion should demonstrate


Assumptions Feasibility Scalability and growth potential
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Suggestion for Financial Projections


6.0M

200,000 150,000 Rp (000,000s) 100,000 50,000


2,000

Revenue

Gross Margin Opera5ng Income 2014 2015 2016 2017

0 2013 (50,000)
Customers 0 35 70 140 280

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Components of The Ask


How much are you asking for? For what purpose? How much of the company are you selling? Whats the value of the company? How will you exit? When will you exit? Whats the return to the investor? Use IRR as the measure
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Financials: Exit Strategy


Investors dont invest to get IN Offer feasible exits typical in your sector
Acquisition
Who? How many whos? Any track record of acquisitions in this sector?

Management Buyouts and Dividend Payments


Decision made by management Not necessarily a desirable exit

Income-based loan / prot-sharing arrangement


% share, length of time?

Initial Public Offering (IPO)


Not a likely option in Indonesia currently

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Other Topics to Consider


Accomplishments Countermeasures to Risks Intellectual Property Porters 5 forces PEST analysis

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Accomplishments to Date
Demonstrates activity Progress is important Shows ability to plan and execute Can be integrated into milestones and demonstrates critical path Builds credibility

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Suggestion for accomplishments slide


Apr12 Team formed May12 Began operations Jul12 Prototype developed Sep to Oct12 Customer testing, design nal Nov12 Begin manufacturing and sales Dec12 Seed funding request Jan13 Recruit CEO from industry

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Risk and Mitigation Strategies


Identify right issues Are mitigation approaches realistic? Big buckets of risk to consider
Technology/Product Market Management/Execution Financial
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Risk Mitigation
Type of Risk What happens Example of how to address U5lize prototypes extensively (Secure preliminary opinions whenever possible) Technology or Science does not work repeatedly Product Technology does not work in product (Regulatory) (Product wont pass current or pending regula5ons) Market and Compe55on

Customers arent paying Alter pricing strategy Adop5on rates are lower More compe5tors exist or they are stronger than an5cipated Emphasize right priori5es

Management People in charge have skills that and Execu5on are misaligned to business Missing milestones Financing Insucient funds to con5nue or next round is in ques5on

Always stay in fundraising mode

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Intellectual Property
Protectable, defendable? Status: led, provisional, granted Type: use, design, process On what portion of the product/business
Advantage is not in HAVING intellectual property Advantage is EXECUTING on intellectual property

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Porters Five Forces


VERY important analysis VERY boring presentation Focus on the conclusion of the analysis
Avoid point by point discussion

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PEST
Political can include regulatory Economic Social can include environmental Technological

Porters and PEST


Good back-up slides Very visual Demonstrates solid research
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Sample Closing Slide


$600M+ and growing market Protectable technology First product and revenue by year-end $1.5M investment 10x return in Year 5 Questions?

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Coordinated Message of Your Business


Core Concept Elevator Pitch Executive Summary Business Plan Investor Presentation

You need the right message for the right audience at the right time clearly articulated and delivered with PASSION!

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Agenda
Putting it in Context Developing the Content Making the Presentation

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Making the Presentation


Presentation Details The Delivery Designing Slides and Visual Aids Handling Q & A

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Presentation Details
Audience: A group of angel investors from different sectors, potentially including your own Format: 15 minute presentation followed by 15 minute Q & A
2-3 companies will pitch for each investor meeting Visuals (i.e. PPT, etc) encouraged, but be prepared for technology failure Interested investors will be in contact with you after the presentation
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Delivery: Before You Say A Word


Impressions begin forming before you speak Own the room Demonstrate an effective TEAM Use your physical presence Introductions Manage your reputation and credibility

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Delivery: Before You Say A Word


Appearance
Professional dress
Unless you have a compelling reason not to

Hair Perfume/cologne, make-up, jewelry

Poise and posture Water, refreshments


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Delivery: Who Does the Talking


Multiple speakers highly preferred CEO must speak if present Strongest speakers rst and last Speakers speak
Very practiced with remote or Team members run equipment

Speakers main focus is the audience NOT the presentation Handing off
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The Delivery
Utilize multiple channels
Multimedia Examples of product or technology

Variation is critical
In slides In vocal quality In pace In data

Introduc5on Context Content Delivery Conclusion


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Use organizational cues carefully

Delivery
Get the audiences attention Develop & build relationship Credibility is critical Demonstrate ability to think on your feet Involve and engage audience Eye contact is critical Humor can be a useful tool Energy and passion sell
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Delivery: Verbal
Practice and get feedback Be aware of verbal habits
Eliminate um and ah So is not a transition

Speak slowly Pause to separate, emphasize ideas Adhere to time limits No Excuses!

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Delivery: Attitude
This is YOUR company Explicitly establish credibility Be the industry and market expert This is not make believe
Eliminate: we hope, we believe, we think

This is not an easy proposition, no:


We only have to We will just
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Delivery: Non-verbal
Be open Make and maintain eye contact Dont worry about the hands too much Use your hands to color words Move some
Dont pace

Check body language


When presenting and listening to others on your team
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Tips for Persuasion


Repeat, repeat, repeat Choose appropriate appeals
Logos (logical) | Ethos (idealistic) | Pathos (emotional)

Supply data, all types


Check your mathPLEASE! Do not get bogged in detail

Explicitly establish credibility, when possible Fulll audience needs


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Designing Slides
Use medium to dark background with light print or Black text on white or lightest gray background Develop brand recognition and use slide template Use builds economically on busy slides Note on PowerPoint slide transitions
Not always needed but always consider FLOW Use one boring transition, unless you have a good reason

Use slide numbers


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Designing Slides
Use sans serif font
Helvetica Arial Tahoma

Use large font size


36-44 titles 24-32 main headers 22-28 secondary headers, no smaller than 18
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Designing Slides
Few colors per slide Keep font size at least 18 point in text Do you have to include attribution on slides?
Depends

Needs to be quickly understood


The more complex the slide, the longer it takes to explain
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Competitive Advantage Example Slide


Vortex Hydro Energy VIVACE Generator GCK Helical Turbines Lunar Energy Ltd Planar Turbines Pelamis Wave Rider Ocean Power Tech Wave Buoy Oceanlinx Water Column

Deployable in rivers and oceans Non-obtrusive Robust Design Ecologically benign Low dependence on condi5ons High energy Density

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Using Slides and Visual Aids


Handouts
What and when to give Do you have enough? Consider leave-behinds

Talk to audience not screen If you must, carry note cards not paper Fewer distractions are better Graphical representations almost always better Less is more
One main idea with 7 chunks per slide
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Technology
Your PowerPoint presentation WILL fail, or lock up, or freeze video
KNOW your material = only way to emerge positively through technical failure

NOTE to Mac acionados: you need to convert to PowerPoint/Windows a full DAY before your scheduled presentation

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Back-up Slides
As many as you like Index ALL slide numbers Know keystrokes
[shift] B or [shift] W # Enter: Jump to any number slide

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Handling Q & A
Know your approach before presenting
Quarterback | Expert | Whatever

Ask boldly for questions Entire team elds questions


Ideally, one team member completely answers each question Limit parroting

Repeat question for you and audience


Amplication rules

Try to anticipate questions in advance and have back-up slides prepared where helpful
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Handling Q & A
Maintain control Maintain credibility Ask for clarity Parse complex or multi-part questions Answer honestly Answer briey Thank the audience

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I dont know
Say I dont know without delivering a negative or uninformed message
Its okay to not know Dont make up answers

Use this as an opportunity to demonstrate knowledge of complex and interrelated issues and relationships Try: Thats a very important issue for us, and were trying to get our arms around that. Follow-up with answer if you say you will
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Finally
Have fun Be passionate Be honest Over-deliver when possible Show energy and enthusiasm GOOD LUCK!

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Coordinated Message of Your Business


You need the right message for the right audience at the right time clearly articulated and delivered with PASSION!

Core Concept Elevator Pitch Executive Summary Business Plan Investor Presentation

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ANY QUESTIONS?

Email: secretariat@gep-indonesia.org Tel: +62 21 83780742


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