Landing Pad: Investment Proposal

Landing Pad: Investment Proposal

Date:
Company Name:
Contact Person:
Email:
Phone:
Agent (if applicable):
Email:
Phone:
Proposal Type /  Sale /  Investment
Business Relocation /  Joint Venture

Executive Summary:

This is essentially a written version of the company’s elevator pitch, i.e. what’s the story?

Background:

What is the opportunity? Why is this product needed in the market? What problem does it solve? What is the market demand? What is the potential market size? What is currently being done in the market?

Path to Market

Assuming all of the above questions are answered, the next questions are then, how does the company achieve its billion dollar goals? What are the first steps? How does the company acquire customers? How does the company scale? How does the company make money? This section should also include what hurdles there are to acquiring a customer.

Competitive Landscape

What are the competing solutions for the company? Why would a customer choose a newcomer versus their current provider? What are the switching costs? What do they gain by switching? Do the competitors have a leg up in terms of supply chain as well? Is it easy for the company to capture suppliers (both suppliers and customers are essential to the success of a company). This can also be an area where IP is covered if in fact it is necessary and part of the strategy.

Stage of Development

Where are they currently in their stage of development? Have they proven their concept? Do they have a prototype? Have they already been selling to customers and if so, how many and what has the market response been? What other items do they have in the pipeline for development? What is their next stage of commercialization?

Financials

Assuming market dynamics, demand, supply chain and competitive landscape work in favour of the company, what does this mean for the company financially? How profitable is it to make and sell the product? What are the margins? What are the key cost drivers? What are the potential scenarios to profitability for the company? What does scaling up look like?

Historical / 2014 / 2015 / 2016E / 2017E / 2018E / 2019E / 2020E
Revenues
Gross Margin
EBITDA
Net Margin
Net
CAPEX
R&D

Use of Funds

Now that you’ve rationalized the potential opportunity, the market demand, the competitive landscape, the financial soundness of the product and your ability to make money, how much are you raising? How are you going to use the money from this round? How is it going to be spent? How does this money get you closer to profitability, in terms of sales, number of users, etc?

Team

Who is part of the team? Who are the founders? What’s their story? Who do they have working with them? Does the team make sense? Have they worked together before? Why are they passionate about this business and why will they be able to make it work?

Board/Partners

Who else do they have working with them? What kind of professional advice are they getting? Do they already have contracts with key suppliers or distributors that we need to be aware of? What exclusivity have they already signed away?

Capitalization Table

Who are their current shareholders and how much do they own? This should also include any bridges, convertibles, warrants, options etc.

Timeline

What is their current action plan and when are they looking to accomplish it? What timelines have they established for themselves to get from A to B?

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