Category: Entrepreneurship

INTRODUCTION

Acquiring investments in your company from angel investors can help your health tech startup take its first steps.

According to TechCrunch, investors spend just 3 minutes and 44 seconds on pitch decks. That’s not a lot of time to tell a compelling story.

Here are some tips on how to create the best angel investor presentation.

KNOW YOUR AUDIENCE

Unlike a venture capitalist, an angel investor is investing their own personal funds into a business opportunity, so they typically fund companies that appeal to them individually. This audience is more willing to invest in early-stage, pre-revenue companies, specifically during the last stage of technical development and early market entry.

Be prepared to answer questions such as risks your company faces, what milestones will this round of financing help achieve and how your company plans to scale in the next year. Plan to show angel investors a demonstration of your product or service as it will help answer lingering questions. Although some angel investors may not be as formal as VCs, you should still have a formal pitch deck. After you find out what they specifically want, you can tailor the presentation to their requirements and timeline.

One of the biggest differences in pitching to angel investors vs. venture capitalists is that you as the entrepreneur don’t need to know everything, but you do have to build trust with investors.

REMEMBER: LESS IS MORE

Avoid the minutia and other irrelevant details in your deck, as too many slides can make your pitch long-winded, and your audience may forget the most important information. Be simple and to the point and limit your pitch deck to 10-15 slides, as follows:

• The first 1-5 slides should explain your company overview, mission, team, problem and solution. For example, how will IDNs benefit from your product or service, and what is the technical expertise of your staff?
• Tailor slides 6-10 to your market opportunity and how you differentiate from competitors (e.g. use the beacon approach). Be sure to explain why healthcare systems would buy your product or service, show calculations and mention any competitive advantages, such as your IP.
• The final 11-15 slides should go over your business model, financials and marketing efforts. Make sure you state what the angel investors will get with their investment (e.g. ROI). Although they will be relevant at some point, don’t worry too much about investment provisions such as liquidation preference, drag-along rights and vesting of incentive equity.

FOR MORE INFORMATION

Revelation PR, Advertising & Social Media offers healthcare IT companies and startups services related to media relations, email marketing, investor relations, tradeshow marketing, content marketing and social media management. Please contact Brian Lee, brian [at] experiencerevelation.com or 608-622-7767.