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10 Speaking Points for Angel $$

by Bob Chaworth-Musters
ANGELforum.org

It is essential that you cover all 10 points depending on time available. Show your enthusiasm and your vision of the business, growth potential and uniqueness of opportunity.

In 2 sentences, clearly introduce yourself with who you are, your position at XYZ company, what does the company does with an "for instance" example.
  1. What problem exists that you are tying to solve? Explain very simply and clearly what the Pain is, how deep and important is the pain and what it costs to solve that problem now.

  2. The Remedy: One very succinct sentence or clear phrase that meets this market need profitably. Is it a painkiller "must-have" solution or a vitamin "nice to have " solution? Summarize how increased revenue or savings to your customer will more than pay for the purchase cost of your product or service. If buyers and investors don't understand your value proposition, you have lost them.

  3. What is your Value-Add? Briefly show or demo your product or service so that it is not just a concept. Explain it in terms that your audience will understand. Describe how you will convert inputs (parts, labour, ..) into more valuable outputs (goods and services). Focus on the value created by your core capability. Do you have sales or contracts pending that will validate market acceptance?

  4. Do you have a clear Competitive Advantage that can be sustained over 5 years? What are your advantages over competitors, what patents and trademarks, uniqueness, exclusivity? Explain the strengths and weaknesses of competitors and their offerings. Will you dominate your market?

  5. Identify and quantify the Market and its growth rate with clear third party market data. How will you reach the identified market, how much time and resources are required to obtain a sale? How long before buyer pays? Your market share will be? Do you have alliances with other companies that you can leverage to expand your company?

  6. Investors invest in Management teams, not business plans. Tell them about the 4 key managers, directors and advisors that will execute the business plan, deliver the profits and increase shareholder value. Explain the professional training, relevant experience, successes and failures of the 4 key people. Identify the management gaps and can a qualified investor play a role?

  7. How big can this business get if given the right capital (how much $$) and how much cash do you need to reach profitability? Summarize your mid-case Financial Projections. Identify your burn rate, time to breakeven and your conservative gross margin. Naming the largest risks and contingencies establishes credibility.

  8. You are looking for a realistic financing Amount to be used in 3 main ways. Know the funding range that the investor usually would consider. Don't ask the average angel for $2 million, nor ask a venture capital company for $100,000. Where will you get the funding needed to reach profitability?

  9. Know your stage of development and what Return on Investment that investors expect for that risk stage. What ROI per annum are you offering? Value of your company calculated 3 different ways. Critical that valuation is realistic - usually less than $1 million for non-revenue companies.

  10. How will the investors monitor the company and their investment? What is the realistic Exit Strategy for the investors in what time frame?

© Bob Chaworth-Musters


Bob Chaworth-Musters in 1997 initiated the BC Angel Forumô (www.ANGELforum.org) where emerging companies present to private equity investors. Sept 30 is the company deadline for 18th Angel Forum on Oct 25, 2005. He is a Board Director of Canada's National Angel Organization. © 2005




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