Investors want to see a number of things, but the thing that they want to see the most is your equity story. Your equity story creates so many opportunities for you, not only for fundraising, but as a roadmap for your own success.
4 Key Elements of Equity Story
While the techniques of developing and presenting a successful investment case can be learned, in order to achieve success, you must have a compelling equity story to tell. Key elements include:
- #1: An experienced and capable management team plus committed advisors, board members, and supporters of the firm who offer the necessary validation.
- #2: A well-defined, sizable, and expanding market for the company’s goods and services.
- #3: Several essential characteristics that the company possesses for effective market penetration, and have been endorsed by industry sector participants.
- #4: Realistic financial goals along with recent history of achieving and/or exceeding prior expectations.
Even the best presentation cannot compensate for deficiencies in any of these crucial areas. Therefore, if necessary, postpone your fundraising attempts until your equity story becomes much more attractive to investors.