Making Your Case: What EARLY-stage Investors want to know
Written by:
Iris Lee
After discussing the data room for investor outreach, we want to delve into the details of initial and follow-up meetings. A solid pitch combines a compelling story with a strong business proposition.
At Bridgewest Ventures NZ, we seek early-stage, deep-tech opportunities that need capital and support for growth. While we often see pitches that aren’t fully developed, keeping these elements in mind can help guide your company and leave a lasting impression on investors.
Background | Your story and journey matters
No need to overthink it. We just want to learn about you and what inspired the creation of this technology or company. Did you encounter the issue yourself? Do you have a personal mission, or are you an experienced entrepreneur? Tell us about yourself and your key collaborators/co-founders.
Technology | A Fine Balance: Less Is More
Here we want to understand the problem you're solving and the genuine need for your solution. Show us how your technology fits into this landscape and why customers would eagerly switch from current alternatives to your product.
There is no need to spend half the meeting detailing every experiment or technical step you've undertaken. If we want specifics on amino acid changes, software architecture, or step-by-step through your production process, we’ll ask. This isn’t to say the technology isn’t important, but instead of overwhelming your audience with too much detail upfront, focus on the key data points that tell your story.
Highlight how your technical developments relate to your value proposition, showcasing superior performance, higher efficiency, cost savings, or time reduction.
This keeps the conversation engaging and allows investors to guide the discussion towards the details that matter most to them.
Remember, if we’re truly interested, we’ll likely involve a technical expert for deeper insights and assessment. So, save your breath for the right audience and focus on delivering a compelling pitch that leaves us wanting more.
Market | Know your Customers and Competitors
When it comes to early-stage startups, investors are laser-focused on one thing: product-market fit. When startups who are not yet generating revenue are pitching a concept that may or may not succeed, product-market fit becomes a critical indicator of the company’s potential to deliver returns. It may be tempting to delay conversations with potential customers or end-users until your product is fully developed. However, early engagement with your target market—before the product is built—can significantly reduce the time and cost of future revisions. Demonstrating early customer interest and feedback not only sharpens your product but also strengthens your business case, showing investors that you’re ready to disrupt the industry and achieve significant growth.
Provide solid market validation, demonstrating that customers not only desire your solution but are also willing to pay for it. Ultimately, we’re looking for viable businesses that can generate revenue and sustain growth.
Be prepared to discuss your market size, growth potential, and target segments to demonstrate a thorough understanding of the market you intend to address. Furthermore, clearly identify your competitors, detailing their offerings along with their strengths and weaknesses. This will allow you to highlight your unique selling proposition, and why your product or service is superior to the competition.
IP & Defensibility | Technical Moat: From Idea to Asset
As a deep-tech investor, we are looking for advancements in your industry. Your innovation could be a game-changer that improves existing processes or a groundbreaking discovery that opens doors to new possibilities.
A strong IP portfolio not only offers a competitive edge but also makes your company more attractive to potential acquirers or partners, adding significant value to the business in future exits.
Clearly articulate how you will create a technical moat that not only establishes a sustainable, defensible differentiator but also enable a high barrier to entry in your niche – because in today’s market, defensibility is the key to long-term success. Consider how to best leverage well-crafted patents, trade secret protection, design patents, or preserving know-how to ensure your business's defensibility.
Progress to Date | Building FOMO
Tell us what you have achieved since the inception of this project. Think of this as your highlight reel. Highlight the key milestones you've achieved, the challenges you've overcome, and the successes that have propelled your project forward.
This isn’t just about updates; it's about continuing to reinforce the message that your company is a one-of-a-kind opportunity that investors can't afford to miss.
Commercialization Plan | Your Blueprint for Success
Now comes the most important part: How will you achieve your vision?
Tell us what the next steps are in your development process and why these activities are vital for demonstrating technical viability, de-risking your business, and reaching market readiness. Detail your business model and go-to-market strategy by identifying your partners, target market, and revenue generation plan. Clearly articulate your pricing model and the necessary partnerships to effectively reach customers. Be proactive in anticipating hurdles and presenting mitigation strategies to showcase your preparedness. Additionally, consider your exit strategy: what exit options might be available? Who might be interested in acquiring your business, and what do they need to see to be interested?
Clearly state your investment ask and how it will unlock key milestones for significant value uplift to attract the next set of investors or strategic buyers.
By providing this clarity, you enable us to support your compelling case to increase chances of securing funding!
If you've made it this far, you're likely committed to pursuing investment opportunities. To assist you on this journey, we’re providing a template that can act as a foundational business plan for early-stage pitches. This resource is designed to guide your thinking and help shape your pitch as you move forward. All the best, and we look forward to hearing about your disruptive idea!
At Bridgewest Ventures, we understand that early-stage ventures may not come with a fully formed business case.
Part of our incubation (we are a Deep Tech Incubator in partnership with Callaghan Innovation) and value-add is to guide portfolio companies and founders through building out comprehensive business case over time, helping them get investment-ready for the next set of investors. Apply today if you believe you have got the next deep-tech idea and are ready to accelerate your progress!