What are Investor Presentations?
In finance, an investor presentation is a type of business plan used to persuade investors to invest in shares or other financial instruments. As noted by Fintalent’s investor presentations consultants, in the case of publicly-traded securities, this presentation is typically given by management at a company as part of a fundraising operation.
Investors are usually asked for money for start-up capital, especially when that funding will be utilized in expanding the organization. The process of giving investor presentations often takes multiple occasions and can take many months before conclusion if not years. When the time comes to finally conclude the process, it typically concludes with either an initial public offering or retail investors receiving shares in return for their investment.
In a somewhat traditional fashion, the pitch is usually made via the use of graphs and charts while a set of slides is typically shown on a PowerPoint presentation. Usually this presentation will have a very simple and basic format that covers the basics of what makes up an investment. The case study portion of the presentation will usually be less detailed and focus on more general aspects such as market competition, business plans, and other similar areas.
The purpose of investor presentations:
Investor presentations assist with attracting investors because they serve as a sales tool in selling a variety of products and services such as patents, franchises, or rights to real estate. Investor presentations assist in generating customer interest in your business by promoting your company image and showing potential shareholders that you are serious about advancing your company.
Investor Presentation Format:
The key to creating a good investor presentation is to tailor it specifically to the audience you are trying to reach. It is important that you analyze previous investor presentations and look for what information is appealing, which areas should be emphasized, and what slides are likely to make the best impression. This is especially true for the first time entrepreneur who does not have time to waste on creating an extensive investor presentation that may not work for their specific audience. You should consider focusing on a well-established company that has already created investor presentations and modified these existing documents to fit their needs.
Customizing investor presentations:
A good investor presentation is the one that attracts investors by highlighting information that they consider valuable according to their particular situation. It may be necessary to modify your existing investor presentation to make it more attractive for your prospective investors and customers. Sometimes it is necessary for you to create a new document if you do not have the budget for making adjustments or reworking an existing Investor presentation. Some investors will request modifications, while others will not demand any changes be made at all. It is essential to study your investor presentation before submitting it and make any changes that are necessary to tailor it for your need.
The Importance of Investor Presentations
Investor presentations are important because they assist a business with obtaining financing from investors such as venture capitalists (VCs), angel investors, banks or private equity firms. It is important to remember that investor presentations are used to satisfy the needs of investors, not the other way around. Although most large companies already have a presentation prepared for their VCs and others, almost every company can benefit from creating a new investor presentation for their own use.
The investor presentation can take many forms with corporate entities such as companies or private equity firms often requiring that their clients have already raised large sums of money prior to accepting funding for their next stages of growth. In this case, there are essentially three types of investor presentations: angel funding, venture capital, and private capital. The most common investor presentation is usually the angel funding presentation due to the fact that it typically does not require any significant proof of development or product launch to enter the market.