To help biotechs wow the scores of venture investors attending the BIO Investor Forum conference (San Fran, Oct 7-8), BIO held a “How to Pitch to Investors” web panel featuring David Collier, M.D., Managing Director, CMEA Capital; CEO, Velocity Pharmaceutical Development, Joe Sum, Partner & Analyst, EcoR1 Capital, Adam Cutler, Managing Director, Trout Group, and Tony Tontat, Capital Access Advisors/Boston. The recording of this can’t-miss web panel is here:
Here’s a recap of the first few minutes:
Q: What are the 2-3 most important things that should be in an investor pitch?
- How much money do you need, how much time do you need, which milestones do you need to achieve, and how will the investor get his return.
- The genesis of the company: How did it come to be? How did it develop the science? What lessons has the management team learned, and what is the quality of the management team?
- What is the company’s edge (e.g. IP? Scientific expertise? Most headway on new target? Working hypothesis of why the product will be different)?
- What is the backup if the lead program goes bust? Is there any salvage value of the molecule in that case?
What is the right number of slides? What’s on the slides?
- These slides should be only 1 page each: exec summary, market growth and opportunity in the market, status of candidate, how much money is needed, milestones. There can be several slides on the science.
- There should be no more than 3 solid points on each slide . Slides should not be text-heavy and dense.
- Spend 1 minute per slide during a presentation.
- The best presentations are as brief as possible. Get across the major points and have backup/appendix slides for questions. This decreases the risk that you’ll spend too much time on something the investor knows already. Don’t be caught without the appendix/backup slides. "Can't talk about that right now, we need to follow up later" is definitely an undesirable response to an investor.
- There was significant disagreement about whether a slide on comps and recent exits should be included. However it was agreed that if you do present comps, they need to be very relevant, and should not exceed 2-3 comps
Watch this web panel here for many more pointers: https://www.youtube.com/watch?v=7JeXHzVYNwU&feature=youtu.be and put your new-found knowledge into practice at the BIO Investor Forum, where qualified investors attend for free.