Before walking into a pitch meeting, MedTech entrepreneurs and executives need to ensure they have a market assessment, product development plan, commercialization plan, and people plan locked into their presentation.
As a MedTech entrepreneur, you’ve created a groundbreaking technology that can undoubtedly improve lives. You are focused on perfecting the details of your product, from production to efficacy. But on the other side of your novel medical technology launch is getting the tech in the hands of the aforementioned beneficiaries. You need to manufacture, scale, sell, and bring your vision to the market. And, most of the time, that means seeking funding.
Understandably, there are times when MedTech executives and entrepreneurs are so immersed in their product that they don’t effectively craft that critical story in their pitch to investors. A misstep can leave founders scratching their heads when the presentation doesn’t go as planned. They see a better future, certain that they have the right solution to a medical challenge, but they’ve fallen short of getting investors in their corner.
These 4 Elements are Non-Negotiable in your Pitch to Investors
Designing the right pitch to investors might mean the difference between a viable product and an idea that never gets off the ground.
Here are 4 key elements that every investor pitch must include. In hitting each of these points, you are on your way to securing funding and scaling your vision into a commercially viable, widely-adopted medical technology that demonstrates ROI.
1. Market Assessment
When you’re bringing a new solution to the market, it’s critically important to demonstrate that you’ve effectively established market viability. As we all know, there are plenty of examples of great ideas that simply don’t achieve market fit.
An effective market analysis will reinforce that your technology is something that people will not only benefit from but actually want to purchase. You will need to demonstrate your available market, your target market, and key market drivers. You will detail unmet needs and why those needs exist. You will detail the existing leading products and their value propositions. By presenting a data-driven market analysis that clearly supports your solution’s fit, you can win over investor confidence.
Next, detail what you bring to the table. A description of the product or service and its history are elemental, but investors will want to see primary research that verifies your assumptions and why you think your product will win. And always include existing customer feedback if you have it. In all, you need as much rock-solid evidence as possible that, upon launch, your product will be met with open arms.
2. Product Development Plan.
Next, provide a detailed development plan that shows investors where your solution stands today, where you’re headed, and everything needed in between. Critical here is your regulatory assessment and timeline, your product development timeline, and key milestones that tell that important story of how your product will come to fruition. Check every box, including a product requirements document and the resources needed for development.
You have to show investors that you understand and can account for every single step in the development process. It provides them with the reassurance that you know exactly where the company is going and how to get there.
3. Commercialization Plan
Now that you’ve detailed how your product will come to fruition in your pitch to investors, you’ll need to show them how you intend to market it in a commercially viable way. Is your price point appropriate? Will it be reimbursed? How will you build brand awareness and excitement? How will you drive sales?
Always bring the following to your pitch meeting:
Comprehensive Marketing Plan
· Brand strategy
· Positioning strategy
· Pricing strategy
· Advertising and lead generation strategy
· Sales materials and tools
Go-to-Market Sales Plan
· Distribution strategy (direct/distributor)
· Launch plan
· Training plan
· Revenue generation metrics
When you demonstrate exactly how will make your technology commercially viable, you’re one step closer to securing funding.
4. People Plan
Your team is one of the most important elements of your pitch. Investors back products, but they also back the people behind them. When you’re pitching to investors, they want to know that you not only have the right plan but the right team to get it done. You can provide the best-laid framework for moving forward, but if you don’t have the team behind you, investors may see an uphill battle.
Show off the existing members of your team, and provide a clear rationale as to those you need to hire. Include key functions and positions and show how each team member aligns with the previous elements in your pitch. Include an organizational chart, hiring timeline, recruiting plan, and onboarding plan. If additional resources are needed for HR, include those as well.
Enter the Room with Confidence
Todd Dunn, vice president of innovation and innovator-in-residence at Atrium, was recently quoted, saying “[It’s] just surprising how many startups present ROI stories with minimal data that either lack credibility or are simply based on weak or unproven assumptions. Feels like the ROI slide is often just a placeholder in their deck.” Whether it’s R&D or no clear pathway to commercialization, many companies have marched confidently into a pitch to investors and walked out empty-handed.
By including these four elements, your pitch will address the concerns that VCs and investors have when evaluating a prospective technology. You will set yourself up to not only secure financial support but confidently move forward in taking your company and your product to the next level.
Do you need detailed guidance for taking your vision from early stages to investor-ready? We’d love to help. Contact us.