Not all VCs are interested in the same thing. Do your research before making any calls to see what VCs are looking for in a company. Check the backgrounds of all potential candidate investment companies and individual VCs to see what types of biotech companies they are partial to, what sorts of risks they take and determine whether they are a good fit for your company and vision.
If you haven't already done so, have a business plan prepared ahead of time. Preparing a business plan that is thorough and complete is a time consuming endeavor and you don't want to have any lengthy delays after initial contact is made with the VC, until you can present them with your plan.
Contact the VC: Introduce yourself and ask if you can send your business plan. If you meet in person, have a business card ready. During the discussion you can find out more information on what they look for in a company and what they consider to be value in a project. You can then incorporate some of this feedback into the final draft of your business plan to "personalize" it for that company. If they agree to look at your business plan, send it right away so they remember who you are.
Allow time for the VC to look at the business plan, about 1-2 weeks, then follow up with a request to make a presentation. Take only an hour of their time, and it might help to send copies of the overheads in advance. Definitely have a confidentiality agreement ready for everyone present.
Include in your presentation: A plan for the growth and development of the company over the next 3 years, a breakdown of the value of the company and how value will be added with additional funding for particular projects, a list of key milestones, and a SWOT analysis outlining who your competitors are (if any) and how obstacles will be overcome.
Discuss finances for the company both present and future, keeping in mind that your VC will probably need a planned exit strategy.
As part of the deal negotiations, you should definitely ensure that you will get ongoing support from your investor as a personal business advisor or management consultant. Take advantage of their experience and financial knowledge. Among the many roles of a VC is to provide these expertise as they have a vested interest in seeing your company grow.
What You Need
- Business Plan
- Business Cards
- List of Milestones
- Financial Information for the Company
- Presentation Materials
- Market Research Results