Most of our institutional investor clients are drowning in deal proposals which may look good but are not really great enough, calling this “normal deal flow”, sifting through the identified market anomalies and proposed business concepts to identify what would be an ideal strategic fit for their fund’s strategy or family office’s investment directives.
If you are a biotech or medtech CEO looking for investment, it is your job to be in tune with what your target investors want, what your competitors (both narrowly as well as broadly defined) pursue with their business and offer their investors, and what aspects of your team/ resources/ background can be showcased most appropriately to “cut the edge” in becoming the genuinely most valuable investment opportunity available to a given target investor. If you do not do your homework, investors will not return your phone calls or take your meetings. Your one liner, company vision, and opportunity branding are the most essential marketing tools to nail. It is backwards to see so many capital raising biotechs and medtechs spending hundreds of thousands on capital raising campaigns that include marketing collateral, conference attendance and weeks of travel – while not having their basic fundamentals in order (and to watch other advisors ignoring those basics likewise).
Here are some quick tips to stand out within your target investor’s deal flow:
- Your one-pager is more important than your pitch deck because without it being excellent nobody will open the pitch deck. If you believe that, then it goes in line that the one-liner on your offering is more important than the one-pager or nobody will be enticed to take your call or meet with you, or open your attachments. The final stage of this logic is in the positioning and vision (call it: branding) – if you manage to create a positioning that on its own attracts investors to you because of your unique focus and possible novel solution, that is the most powerful place to start.
- Our client investors’ consistent feedback is that that someone approaching them has very few seconds only (when in person) or just about a few sentences (when in writing) to get their attention or they move on. This is why your one-liner on why you possibly are creating a unique solution is so critical, and why it should be crafted with care, tweaked and improved over 30 times before being used in the marketplace, and continuously evolved as you go from interaction to interaction.
- They also, for the most part, appreciate one-pagers on the offering before they look through a 20 to 40+ page pitch deck. They want to know in just a minute or two if the opportunity is real, scientifically credible, has a commercial role (for that one, they often are better at figuring it out than the majority of scientific founders), the venture is a serious one (or done on Sundays), and unique enough from the flow of normal deals they get pinged with daily. They do not want to flip through 27 slides to figure that out on a high level.
Getting these right are not $25k or $100k expenses, this is about being highly intentional and making good use of your time and the time of investors you approach because of your offering being designed just for them, helping you make outsized progress in the marketplace for capital.