The 7 key items you need to close a deal

5 mn read

That’s it! You’ve just pitched to your dream social investor. But what comes next? Once you’ve pitched to an investor, you need to be ready to follow up with your Business Plan as well as all of the follow-up Investor Materials that they will expect to see from you.

You will present your investment story to investors in a number of different formats. You need to compile a pack of information that you can hand over to investors once you have begun the pitching process. You don’t want to be compiling information on-the-go once discussions have begun, as this can delay the process and will look to investors like poor preparation.

You should have a single set of documents to present to all investors. This ensures a common understanding by all parties, and prevents different discussions taking place based on different information.

The key items for your Investor Pack are:

1. Business Plan: a detailed write-up (usually up to 30 pages) that provides all of the key information about your venture. Click here for a recommended outline on how to write a business plan.

2. Executive Summary / Investment Teaser: a condensed 1-3 pages version of the Business Plan (often used as the Introduction of the Business Plan). The Executive Summary is usually the first document that you provide to investors to solicit interest. We refer to it as an ‘Investment Teaser’. You can then follow up with the full Business Plan and/or Investment Slide deck if the investor expresses interest.

3. Investment Slide Deck: this is the same information as in your Business Plan, but formatted as slides with extensive use of pictures and graphics. Some teams only prepare an Investment Slide Deck and skip writing a formal Business Plan. We recommend that you do both, as some investors prefer the Business Plan format, but the choice is up to you. If you only pick one, we suggest going for the Investment Slide Deck, as most investors are very busy and prefer easy-to-digest information.

4. Investment Pitch: this is a short version of the Investment Slide deck (probably no more than ten slides, with very little text), designed for you to use in a ten-minute verbal presentation. A 10-20 minute pitch, followed by questions and answers, is the typical format offered to entrepreneurs in investment pitch events. You will need to get very practiced at delivering this pitch.

5. Elevator pitch: The ‘elevator pitch’ is a two- minute verbal pitch of your social venture made without any slides or other materials. Again you need to be very practiced at making this pitch. You will use it in conferences and chance meetings with potential investors where you need to explain in no more than two minutes exactly what you do and why your social venture is exciting. A huge number of opportunities arise in chance meetings and you need to have the key facts, figures and phrases at your fingertips if the opportunity arises.

6. Financial Model: the Financial Model is an Excel-based spreadsheet projecting your cash flows for the next few years. In Module 5 of our Toolkit, we showed you how to prepare a Financial Model, and provided a Template Model using an example. Ideally, you should send investors your Financial Model showing various growth scenarios that you are projecting. Please see Module 5 for a detailed discussion on what should be in your Financial Model.

7. Financing Term Sheet: in module 7 of the Social Investment Toolkit, we show you how to prepare a summary Term Sheet listing out the key financing terms that you are offering to investors. This can be used as the basis of negotiation. 

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