Many CEOs in biotechnology are focused on reaching out to as many investors as possible in a style that is known to be rather hectic and haphazard. A recent study showed that nearly 80% of institutional investors will not invest in a concept they do not understand scientifically. Saying it another way, if investors do not understand your concept goals, how you will generate returns and manage risk… well it is very unlikely you will receive funding. The question then becomes, what is the best way to educate investors and build market credibility around your concept, candidate, or development program?
Our innovative clients in biotech are securing investment by cultivating a dynamic investor funnel including monthly newsletters, whitepapers, quotes, workbooks, presentations and video recordings. Whilst these novel approaches cater rarely to institutional biotech VCs, they go far in the non institutional seed, angel and family office spheres, who more and more become go-to targets in parallel or in sequence to traditional venture funds as financiers. Moving with the global scale advancements of communication and technology, these information rich assets build a robust approach to educating investors and the marketplace about your concept. From our experience, firms implementing this advanced investor funnel approach are seeing exponential results vs. those who do not.
Each project or investment deal essentially calls for a different scope and approach to building effective marketing material. That said we have organized a checklist of common items that should always be properly organized before an investor reviews your concept:
- Your team’s pedigree, experience and overall functions should be stressed and clearly detail your point of difference, i.e. why you are better than everyone else. Not only within your disease area or scientific niche, but versus all the other investment opportunities that investors may be looking at. Your uniqueness is the cornerstone that you should build everything on, and translate how it positions you to achieving your (value creation) objectives.
- Take time to tailor your marketing material in a fashion that matches the specific investor that you have chosen to focus on. Many will have very particular “trigger points” catering to which may make or break an investment decision.
- Your concept logo and website should be stellar. In today’s modern society, it does you no favors to have a “clipart” website and a dated “Windows 95” type logo. To have your website and logo professionally created is extremely equitable, and if you do not invest in your concept’s curb appeal, how can you expect an investor to.
- Visually stimulating marketing material is key including pictures, video and case studies. Combine your great visuals with effective strong copywriting, leverage the psychology of writing in an engaging way that compels readers. This may be counter-intiutive for some who are “hardcore science” but our observation is that across disciplines the value of successful communication is commonly accepted, just often loosely implemented.
- Create a pitch deck that is preferably 15 slides, no more than 20. Sure, yes, we understand you may have a lot to say about your concept, but no investor really becomes gleeful being presented with a 60 slide pitch deck. Do include your complete contact details for easily followup. This seems logical, but it is a basic element often left out.
- People want to understand your concept and if they can trust you and your team with execution. The future of raising capital in a busy world is video, include one or more videos of your concept, team and/ or office (unless your company is virtual) to build rapport with your audience.
We hope you find these tips helpful, leave a comment or send us an email sharing your success story from implementing some/ all of these elements.