How to prepare and pitch to PE/ VC Funds

Transcription

1 How to prepare and pitch to PE/ VC Funds 27 th Regional Conference Organised by WIRC of the ICAI Shailendra Jindal C.E.O., Continental Capital Advisors Mumbai, August 31, 2012

2 Raising Private Equity You need money now... on your terms. The problem... the world of capital doesn't work that way.

3 Agenda Whether the Company will be able to attract PE/VC? The process of pitching to the Investors Pitching to Investors????? Tips for pitching to Investors Mistakes to avoid while pitching to investors Q & A

4 Whether the Company will be able to attract PE? What you need to have for attracting Private Equity?

5 What you need to have for attracting Private Equity? The Management Team Corporate Governance Strong growth story Due- Diligence Great Business Plan Exit options Technology Pricing

6 The Process of Pitching to the Investors

7 Pre-Pitch Phase Identify Pre-Pitch Pitch Due-Diligence Result Identify the investors Company Private Equity Firm Reports/ Documents 1. Research and Identify the Investors 2. Screen and Select the Investors 3. Prepare the list List of Selected Investors

8 Pre-Pitch Phase Identify Pre-Pitch Pitch Due-Diligence Result Pre-pitch Phase Company Private Equity Firm Reports/ Documents 1. Prepare a 2-3 page Teaser Document to enable pitching investors and mentally prepare them for the pitch 2. Mail the Teasers to the relevant Investors 1. Review Teaser document 2. Contact the Company, if interested Teaser

9 Pitching the Investors Identify Pre-Pitch Pitch Due-Diligence Result Pitching the Investors Company Private Equity Firm Reports/ Documents 1. Max 15 slide Power Point Presentation for your case 2. Presentation by Senior Management Team/ Promoters 1. Understand the Business Case 2. Enquire about the Product, Market, Business Model, Industry, Team and Financials etc. 3. Assess the Business Case and whether it falls within their investment plans Business plan

10 Due Diligence Identify Pre-Pitch Pitch Due-Diligence Result Due Diligence Company Private Equity Firm Reports/ Documents Disclose all the relevant information/ Documents 1. Financial Documents 2. Legal Documents/ Material Contracts 3. Product/ Technology details 4. Technical Know-how/ patents etc 5. Sales and marketing Plans 1. Study all the Documents 2. Preliminary assessments of the Documents Internal Reports

11 Final Negotiation/ Completion Identify Pre-Pitch Pitch Due-Diligence Result Results Term Sheet or Regret Company Private Equity Firm Reports/ Documents 1. Final Negotiations and Discussion on Terms and Conditions of Investments 2. Discuss and Agree on major milestones. Funding schedule, investment vehicle, exit route etc. 1. Issue Offer Letter/ Term Sheet 2. No response/ Regret Term Sheet/ Regret

12 Pitching to Investors????? Include a detailed marketing strategy in your initial pitch presentation? Should startups do a video presentation for investors? A good idea or a good plan? What do investors invest in? Should you write the Executive Summary first or last? How do I write a powerful elevator pitch? Should I pitch if investors don t understand my domain? Should I elaborate on Technical details? How about impressing investors with my expensive Car and Gadgets?

13 Tips for Pitching to Investors Start by introducing what you do and for whom.. Keep the overall pitch short Investors are interested in the business case not just details of the concept or the product Focus on key aspects rather than fluff around your business case The market is 15 bn USD globally has no meaning Be prepared with answers to questions Explain why you are qualified to do this business Be Passionate Be clear with what you expect End with a recap- End strong Speak clearly, slowly and loudly

14 Mistake to avoid while Pitching to Investors Poor assessment of the risks in your venture Poor assessment of the competition or assuming there is no competition Exaggerating Management Strengths Impractical and Unrealistic Growth Projections Including name of advisors if they are not genuinely involved Asking for a very high valuation anticipating hard negotiations Showing off list of investors in the queue for funding Showing interest in getting VC/PE funding to avoid interest cost and risk for collateral

15 About Continental Capital Advisors (CCA) Investment Banking firm with network partners across the globe Overseas Listing/ QIP/ Placements Team of Expert PE advisors and Corporate Finance Specialists Promoter and Acquisition funding, Mergers & Acquisitions Raising Private Equity, Corporate and Business Advisory Services ECB s/ Buyers Credit/ Suppliers Credit Project Finance and Working Capital Loans

16 Communications Any clarifications can be addressed to the following: Mr. Shailendra Jindal Continental Capital Advisors 204 B, Town Centre No.2 Andheri Kurla Road, Andheri (E) Mumbai, India Tel: Fax: shailendra@continentalcapital.in

17 Thanks for your patient hearing and Participation C A Shailendra Jindal