staurt paul private equity briefing

‘Secrets of Raising Cash’

© 2015 Eliances. All Rights Reserved

Stuart Paul, CEOAZ Life Science Partners, LLC

[email protected]

Private Equity

mailto:[email protected]



• AZ Life Science Partners, LLC founded• Angel and private equity investments, licensing• Advisors, consultants to VC, PE and med-tech• Philosophy of partnering with portfolio companies to

unlock potential• Value creation experts: focus on cost reduction, outcomes

improvement in healthcare

AZ Life Science Partners, LLC




• Requires a great pitch• Hit the big points early – traction • Don’t make investors wait 5-6 slides• Formula for pitching is key; exit strategy is optional but

welcome• 11 core “elements” every entrepreneur must include in

the pitch• Too many slides = too much information

Increasing the odds of getting funded….

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• Is not to answer all possible questions• Is not to close an immediate investment• It is to open investor’s minds to your vision and get

them excited to know more• Grab interest but not overwhelm• Leave them wanting more• Stand on its own• Tell a compelling concise story

Purpose of the pitch deck…

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1. Vision / elevator pitch2. Traction / validation3. Market opportunity4. The “Problem”5. Product / Service6. Revenue Model7. Marketing and growth strategy: how you grow your business8. The Team and key advisors / investors / stakeholders9. Financials10. Competition11. Investment “Ask”: capital raise and use of proceeds

Tell a concise story…

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1. Vision / elevator pitch Short and memorable One-liner is best

2. Traction / validation Timeline and milestones Early growth metrics Awards, articles, customer base

Getting it right….(1) and (2)

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3. Market opportunity Define your market: what business space are you in? Market size: TAM (total available market vs. served) Target customers and macro-trends

4. The Problem What’s the unmet need or problem you are solving? Make sure solving their #1 problem not #4 or #5 What others are doing to solve it, and why they are not

getting it right?

Getting it right…. (3) and (4)

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5. Product / service Show how customers value your product/service Live demo if quick / do not use videos Show the core value proposition to target customer

6. Revenue model How do you make money? What is the pricing model? Revenue and # customers to date? Avg revenue per user / lifetime value of customer?


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7. Marketing and growth strategy Where are your customers looking today for help? Channels to reach and win customers? How will you achieve target growth rates? Your point of differentiation?

8. Team Who are key team members, advisors, board if series A? Demonstrate relevant experience “Skin in the game”? Which roles are key to success?


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9. Financials 5 year P&L projections with 1-2 year historicals Pre-revenue show 6 year (accounts for lead times) Critical assumptions

10. Competition Competitive advantages? Sustainable? Patents /I.P.? How do you own your own place in the market? Who are your competitors, why have they succeeded? How

do you truly differentiate from them?


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11. Investment “ask” How much capital raise and stage (seed vs. series A) Investment terms (e.g., equity, debt versus convertible note) at what

pre-money valuation? Investors in round, previous investors, new investors? Founders? Key

angels? Strategics? Avg. monthly expenses? How long will new $ last (runway)? Prior investment rounds? Size? Investors? Valuation? Key terms? Use of proceeds? Sales / marketing? Founder salaries? Key employee

hires? Capital equipment / buildout? Patent filings? Achieve key milestones? 1st customer? Get to breakeven? 3x revenue

growth?

Getting it right…. (11)

staurt paul private equity briefing

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