Question

Topic: E-Marketing

Need To Write Executive Summary For Investors

Posted by Anonymous on8/11/2008 at 11:26 AM ET 250 Points
We have a unique niche in the IT industry. We have investors interested in investing in our company. We need help in taking the raw technical data and putting it into an exective summary that the investors can understand. Many of our potential customers are billion dollar companies who are ready to sign once financing is secured.
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  • Posted on8/11/2008 at 11:32 AM Member
    Do you have a small business association or small business development center in a nearby college? If so, you can start there and gain great exposure to business tools such as executive summaries that will be developed specific to your audience and business environment. In addition, you will have opportunity to meet and often work with small business development professionals who can directly support your efforts. Good luck. Erin

  • Posted byInbox_Interactiveon8/11/2008 at 11:34 AM Member
    It seems unlikely that investors will put money into your company without a full-scale business plan. Only if they already "get it" might they entertain an investment based on an executive summary, and even then only if they have complete confidence in your management, which is by far more important than your product or service when it comes to raising capital.

    However, if you are writing an executive summary the following format always served me well when I did this sort of work back in the go-go days of the dot-com era:

    Problem: State the problem, why it's a problem, who is up at night worrying about it

    Solution: How you plan to solve the problem, your solution

    Management: Why you are the guys who can actually deliver on this solution and make good on your business goals

    Capital Requirement: How much money you need at this phase to implement the first phase of your solution, what it will be spent on

    Exit Strategy: How investors can realistically look to get their money out in 3-7 years. Don't just say "IPO" or "someone will buy us." Say why someone would be interested in owning you in the future. Who might they be?

    Good luck with your fund-raising!

    Paul
  • Posted on8/11/2008 at 12:11 PM Author
    Paul,

    Sorry to not be more clear. They already understand what we do and want to invest. They don't want a formal business plan but an exective summary that they can present to their partners. We have the management in place that they are satisfied with. We have a good white paper that explains things. It needs to rewritten to put in easy to understand format for a layman,
  • Posted byInbox_Interactiveon8/11/2008 at 12:45 PM Member
    I understand now.

    So what is it that you're looking for here on the forum? An online resource or guide to preparing this kind of document? Our goal is to be as helpful as possible.

    如果你是我ooking for someone to assist you with a deliverable, I'm happy to help. Just contact me outside the forum.

    Thanks,

    Paul
  • Posted on8/11/2008 at 3:58 PM Member
    An Exec Summary is essentially a summary of your business plan. You will need to write a full scale plan first then a summary for your investors to peruse.
  • Posted bymatthewmnexon8/13/2008 at 11:35 PM Accepted
    Hi Jordan,

    I have worked for several years in the finance industry and I have seen good and bad executive summaries.

    Here is what works.

    Keep it very very simple (6 pages at most)

    Right on the FRONT PAGE List these items

    name of the project
    sector of the industry
    Project principals (you and your team)
    Total required capital to launch
    Total capital being requested now for this funding round
    ROI in Years for this capital (make it 2.5 to 3.5 - longer than that it is tough to get finance)

    On the succeeding 5 pages talk about each of these items in a little more detail (1 to 2 paragraphs only)

    Don't waste time talking about anything technical when it comes to talking about the product or service itself.

    Just 'Identify that there is a problem' (problems = costs)
    'Demonstrate that your product is THE solution' (solutions = value)

    make sure your contact details and your bankers/lawyers contact details are clearly stated on the last page.

    make sure that a brief BIO and Picture is included for each of the key principals - Always remember that financiers rarely finance projects, they finance PEOPLE

    不管你的想法有多好,他们想see your track records and proven management ability (especially financial management abailty).

    if you do not yet have a top class CFO onboard (impressive resume with Known big corporates), then hire one (even on a consulting basis) and get his/her name into the exec summary to build some perceived stability and experience.

    The goal of the EXEC SUMMARY is to peak the possible interest of financiers who already know about the industry sector in most cases. Don't try to hide anything because experienced investors 'KNOW EXACTLY' what they are willing to back and what not.

    If they are interested, they will contact you for a more in-depth meeting.

    before handing over any EXEC SUMMARY be sure that they sign an NDA this is one way of gauging the seriousness of the potential financier and weeding out the fly boys.

    if you can get them into a meeting - then your exec summary is working. If there are no bites, then it is not :)

    Don't hesitate to contact me if you would like further advise on this.

    Matthew
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