How long should a roadshow presentation to investors be?

There is a 30/20/10 Rule from Art of the Start by Guy Kawasaki that states 30 point font size, 20 minutes, 10 slides.  Typically, if you can tell the story in 15 minutes, it leaves more time for discussion.  Some investor conferences limit each presenter to 6-8 minutes.  Expect interruptions for questions at times.  Clarity and brevity and the keys.

Will investors sign a Confidentiality Agreement prior to a company presenting?

No

What are the couple biggest mistakes made during a company roadshow presentation to investors?

Too much emphasis on technical/scientific information.  Overview the technology, but let them know what is compelling about it, understanding how it fits into your market sector, the competitive landscape, if the intellectual property is protected with patents, and how accessible the market is versus the hurdles you face.  (i.e. are your financial assumptions valid, and what human resources do you need to succeed)  Do not talk about who the customer is and how to get money "out of their pockets" at this juncture. It is also key to have the right person do the presenting -- he or she will be evaluated as whether they are able to execute the business strategy.

What are some key decision criteria that early stage investors utilize?

Can this idea be commercialized?  Who is going to do it?  Is the technology proven, or still in a stage where efficacy and safety are not known, in which case, how much capital is needed to answer these questions.  Have you thought about a viable exit strategy for the investors and is it realistic? Are your financial assumptions realistic?  Are you a "me-too" deal or patent protected?

What kind of investor should a company target?

Look for a value-added investor, i.e. one who can bridge relationships with other investors and strategic partners.  Angel investors and angel networks tend to do smaller financing rounds, whereas the venture capital arena usually has multi-million dollar minimums.  Each carry different criteria as do the state funds.

How do I find out about possible angel investors, state funds, etc.?

Iowa has the Pappajohn Entrepreneurial Centers, the Iowa Department of Economic Development, various Entrepreneurial Centers run in local communities such as Cedar Rapids, Fairfield, and the Quad Cities, and the Small Business Development Centers to name a few places to start.  All can add valuable information and help you network further.

What is a lead investor?

A professional with a mid-to-large size fund who can vouch for due diligence, syndicate with other investment firms, and help navigate the management team through the various stages of growth.  Many smaller angel investors do not have the capability or interest in doing extensive due diligence on an offering, thus, a lead investor typically is that entity that does which in turn offers comfort to the angels when they decide if theywish to invest.  On some deals you can get a mix of angels and mid-sized funds, in others, it may be only one type or the other.

Should I send a business plan to potential investors?

Yes to venture capital firms, but call first and within 48 hours, call again and again.  Face to face meetings are better for angel investors. Typically for angels, a 2-4 page Executive Summary is all that needs to be sent until you ascertain if they are interested in meeting with you. You must be able to tell the story on paper succinctly, just as you must in a roadshow presentation -- angel investors are too busy to read 30 page business plans initially.

How do I find angel networks?

The Iowa Dpartment of Economic Development may be able to help.  Another key is simply doing a lot of networking with entrepreneurs in Iowa.

Where can I find some guidelines on how my product or service would be scored by investors or entrepreneurial development professionals?

The Cedar Rapids Entrepreneurial Development Center (EDC) has one such template available.  There are likely others available as well.

Does it make a difference where my company is geographically located in Iowa?

Technically the answer is no, but expect to be asked how you intend to recruit the necessary talent to some locations.  If you are going to need to rely on networking, mentoring, availablity of lab wet space, etc., you will obviously have to consider where these are located in Iowa. If your business relies on shipping, this may affect your costs and access as well.  Similarly, if your business is agriculturally based, your location may be different than if it is human medicine focused for example.The bottom line is investors want to see you do everything possible to increase your odds of success, and where the company is located is only one piece of a large puzzle.

Are there any opportunities to present my company in a public forum?

There are a number of opportunities, including the VNI Program which is run by the Iowa department of Economc Development.  Entrepreneurial events are held by BIO (Biotechnology Industry Organization) which can be accessed in Iowa through the Iowa Biotech Association which is based in the Des Moines area. Check with the Pappajohn or community-based entrepreneurial development centers for more networking information in this regard.

Where do I find information on the Iowa Business Plan Competition?

Please check http://www.iowabusinessplancompetition.com/

I am looking for programs of the Innovation and Commercialization Division.  Where are they?

http://www.iowalifechanging.com/business/innov&comm.html

I am looking for information on the Iowa Demonstration Fund, where do I find it?

http://www.iowalifechanging.com/business/ic/demonstration_fund.html