I’ve had the opportunity to assist a number of MedTech companies with their funding efforts this year while on their journey from concept to commercialization. Several things have caught my attention regarding Pitch Deck information and seem to be a common issue with many companies.
They include but are not limited to the following:
The Problem/Opportunity
An accurate description of the issue along with supporting data is essential. A high level statement on current activity doesn’t cut it and needs evidence- based support to clearly articulate the opportunity.
Value Proposition
This is not often clearly defined in most Pitch Decks. It is the ‘meat on the bone’ so to speak and tells potential investors what the benefits and advantages as well as the economic value the company’s product or services will bring to customers/end users. It is derived from a well-defined analysis of customer needs and forms part of the overall strategy.
Path to Market
This is rarely straightforward and usually includes many activities, multiple stakeholders and a segmented customer journey, all of which need to be articulated to a potential investor.
Risk
There are two types of risk here and I find that both are not always considered. The first is business risk, which includes such things as development risk, product/service security risk and production risk as part of scale up activities. The second is market risk and can include reimbursement hurdles, regulatory risk, customer acceptance risk and potential changes within the market which may affect market adoption.
Regulatory
Confirmation versus speculation is the order of the day here. Simply ‘guessing’ at device classification and regulatory pathway does not give investors comfort on approval success. Outreach to regulatory bodies like the FDA in the US, a Notified Body in the EU for MDR requirements or the NMPA in China will help to de-risk regulatory strategy and bring clear thinking to difficult processes. Remember, no matter how good your product may be, it can’t be sold without market approval.
Team
Speaking to team member skill sets and experience in the space is important, but equally important is the need to clearly identify where the gaps are when bringing a product or service to market and the roles that will be needed to address these gaps. Don’t just simply speak to current team members. Take a hard look and decide what additional skills will be needed to achieve success.
Financial Projections
This is never an easy or favourite task of entrepreneurs but an essential part of conveying the long term value and rate of return on a business. Too often I see the ‘hockey stick’ curves on revenue, which are quickly discounted by most investors. Better to represent a realistic growth rate over a 5 year period and match this against carefully reviewed expense lines to support needed resources and activities.