Getting IPOready: How to Pitch to Investors
Last week, our IPOready participants were invited to partake in a practical exercise: present their investment pitches to a high-level investor panel comprised of Edel Coen (Draper Esprit), Leo Casey (BGF), Fergal McAleavey (ISIF), Terence Liston (AIB) and chaired by Linda Hickey (Non-Executive Director Kingspan and Cairn Homes).
All the companies brought their A-game for the day, presenting with energy and showing the hard work and ambition behind their investor pitches. The companies impressed the panel and their fellow participants with their growth stories, their successes, and some fascinating facts: did you know that there is more gold in 1 ton of printed circuit boards than in 17 tons of ore? Neither did we!
Some important tips and pieces of advice were given throughout the day by both the presenters and the investor panel, starting with the importance of knowing your audience and marketplace, and how to open your pitch to be memorable. Another point to remember is that while you know your company inside and out, not everyone will, so be very clear, at the beginning of your pitch, about what your business is and why investors should give you their money to invest in it.
One free tip for all is that when pitching to a potential investor, be aware that they cannot focus on two things at once, and therefore prefer a well-designed, bolder and more modern presentation deck with less text and no jargon in it. Make them hear your story, not read it!
The investor panel wrapped-up the day by sharing some essential bits of advice to the entire group: To impress your potential investors, you should observe strong governance and compliance, be on top of your numbers and know your story and why it sets you apart. And lastly, don’t undersell yourself — be bold about knowing why you are the best!
You should also know what each investor (or their representative firms) are looking for before you pitch to them; knowing your audience enables you to tailor your story appropriately and not waste anyone’s time. Building on this last point, perhaps most importantly, “who’s deciding on the next move has to be you — so be careful and make sure you are marrying yourself to the right investor for you and your company.”
After each presentation, the investor panel asked the companies some questions.
Here is a selection you should be prepared for and able to address during or after a pitch:
- What is the problem you are solving?
- How do you do it better than everyone else?
- What is your customer breakdown?
- Can you clarify your growth patterns?
- What is your growth story?
- How do you monetise your model?
- Can you elaborate on your ESG initiatives?
- What are your main challenges?
- How do you protect yourself and the brand if something goes wrong?
- How do you avoid your ROI plateauing?
- How do you plan on bypassing your blocks/issues/constraints?
- How do you flip your value proposition to become value creation?
- How inherently profitable can your business stay as it scales?
- How are you allocating your resources to make them most cost-effective?
Know how to answer these questions, put your best foot forward and you’ll be ready to pitch to your investors too!
To learn more about the IPOready programme, contact IPOready@euronext.com
