The homework before you pitch

Pitching to investors can sometimes be daunting. With the number of questions coming your way, you may feel a little overwhelmed. This article is a brief overview of what is important and by keeping the following documents with you, you may find it easier to navigate the journey of pitching to investors.?

Pitch deck – A pitch deck is a presentation shown by startup founders to potential investors. The aim of a pitch deck is to inform and educate the investors about a startup’s business idea. It is a quick overview of the business plan.?

More often than not it’s the primary document that generates interest among investors and could potentially lead to a secondary meeting.?

Financial projections – A financial projection is a forecast of future revenue and expenses. The aim of this is to show investors how you will repay loans procured, what your intentions are with the money you get and how you intend to grow as a business. This includes the following documents:

• Balance sheet - a financial statement reporting the company’s assets, liabilities and shareholder equity, providing a snapshot of the company’s finances as of the date of publication.?
• Profit and loss statement - This refers to a financial statement that summarises the revenues, costs, and expenses incurred during a specified period.?
• Share capital distribution - A company's share capital is the money it raises from selling common or preferred stock. Authorised share capital is the maximum amount a company has been approved to raise in a public offering.?
• Valuation report - A valuation report is necessary for a startup which must be obtained by a Registered Valuer. This report documents and assesses the value of the enterprise, taking into account all relevant market, industry and economic factors. Also gives the founder a strong base for asking the valuation that he/ she is.?

Market research supporting documents - When pitching to investors, it is important to have extensive knowledge about potential competitors, target audience, customer preference etc. Therefore when making claims or stating ‘facts’, it is important to have market research supporting documents that can be used to verify and validate the facts presented by the founders. This gives more legitimacy to the business idea.?

After pitching, if and when a startup is selected, and investors have decided to invest in the business, a number of other documents are required to complete the procedure. These include documents like:

• Legal and statutory compliances
• Certifications, licences, IPR’s
• Financials and ITR of previous years (if any)
• Company incorporation papers
• Detailed financial projections with underlying assumptions?

It is always a bonus if you have a financial advisor and a legal team to support you through this. They are pillars to sustainable growth.??

I hope you find this article useful.??