Does it sound rational to invest in a biotech enterprise? It can be a challenging decision since most biopharma companies look barely promising when at the development stage. Eating cash from investors with no payoff is what they seem to be doing. It may take years before their monetization starts to work.
It is a risky venture at first sight. At the same time, potentially high returns on investment encourage many to accept the risks under certain conditions. The following ten suggestions can help public biopharma enterprises articulate a sound investment rationale to create such conditions and get rich investors.
- Stay down-to-earth in your promise. Meeting deadlines is crucial in any business, especially when it comes to selling pure ideas in biotech. Few things can create better credibility than beating the timeline you indicate in your investment plan. Investors will rightly assess your managerial cogency if a realistic timeframe is available in your funding application.
- Prove your business ambitions. Your commercial estimates become viable in the eyes of investors when independent analysts can check the facts behind your project. Back up your business opportunity with verifiable figures to demonstrate that it is not invented from thin air. You have a good chance to prove that a small biotech company can significantly scale up by shifting to products in higher demand. But facts instead of hyping should stay behind your business idea.
- Create a concise investment presentation. Your investor-oriented slide show should have a reasonable volume of about 30 slides. Remember that investors are busy people appreciating those who appreciate their time. Most likely, they stay far from the scientific matter you are close to. Hence, try to make your presentation easily digestible in terms of scientific subjects. Nanobot Medical can help you create a tailor-made pitch deck, delivering high quality visual storytelling that won’t leave your investors indifferent.
- Make sure to mention your funding journey. Keep your investment discourse with no precise periods. “Within XX months” or “during 2023” sound not too specific and confident enough at the same time. It is better to have a particular margin of time not to be caught red-handed by investors who will inevitably ask about your estimated financial activity.
- Try to look not too eccentric. Doing best from what your peer companies do is a reliable approach. Elon Musk is a rare bird among thousands of respectable, trustworthy, conformist CEOs. Excessively odd projects can hardly impress Wall Street investors.
- Describe your intellectual property straightforwardly. Use plain language to reveal information on your issued patents, if any. Explain what they are. Clarify your intellectual position that prevents potential rivals from doing what you do.
- Include your technology in the investment story. Tell investors from where your technology comes. It may have either an academic origin or a commercial one. Explain the reasons why the creator has agreed to sell the technology when you have acquired it. Describe how you are going to develop the technology to outperform its previous owner. Investors will most likely accept your business idea if a consistent investment story is available.
- Calmly accept pessimistic analysts. Don’t take their vision personally. Investors look for a seller when buying stock. Analysts with neutral or even negative recommendations indirectly encourage you to foster marketability. Never ignore them, and stay calm. Use proof of the opposite to demonstrate that their position is wrong.
- Maintain a proper balance between running your business and relationships with investors. You should continuously keep communicating with investors through calls and conferences, as well as taking part in their roadshows. However, it is worth making them see that you run a company simultaneously. Stay unavailable for investors from time to time to be more desirable during face-to-face investor meetings.
- Represent your roadmap. Profit cannot determine your management capabilities since you have no revenue. Hence, investors will react to particular landmark events you are moving through to assess your credibility and evaluate your company. Your investor presentation should indicate a set of milestones for the following year. They may include regulatory instruments, clinical trial data, package solutions, acquisitions, and the like.
Your primary goal in issuing an attractive investment thesis implies introducing your business strategy with an underlying technology. It should be concise but compelling since about 400 public companies besides you are available in the biotech sector. And all of them are striving to grab the investors’ attention which is limited. Do your best to catch it to improve your chances of getting funds. Contact our experts if you need professional assistance developing an excellent investor relations campaign.
