Investor Presentation – Market Opportunity

Investor Presentation – Market Opportunity

This section/slide should address:

  • Target markets showing segmentation based on the Standard Industrial Classification Code (SIC Code) or North American Industry Classification System (NAICS Codes); or similar codes as used in your country.  How large is each, how are they growing?  What part of which segments are addressable and why?
  • What is the opportunity size or Total Addressable Market (TAM)? If the Company says it is creating a market, the Investor wonders; “How do I know there is a market opportunity at this time?”
  • The plan for growth, how business will grow, piece by piece to “own” what market. This includes the strategy by which the Company will gain access to the appropriate channel.
  • The world is “flattening out” and “globalizing” at an accelerating pace. Increasingly, American companies are competing with foreign companies. This does not mean that the markets are decreasing in size, but, evolving. These factors impact this Company as follows……

Notes

  • Many Companies make the mistake of claiming that they will penetrate (for example) 10% of a large market instead of understanding the real TAM that they should attempt to address effectively. A good strategy grows the business in a step by step way; including showing how the first few (or next logical group of) customers will be closed. This is also known as a bottom up strategy.
  • Many startups are launched solely in the home country market and may later expand internationally. Others are formed with the plan to perform internationally from inception.
  • Some suggest that the right Investor (individual) knows the market already (before the presentation).

 

John Gale’s White Paper on Business Plans is Available for Download

This Post is based in part on John Gale’s White Paper, Startup Presentations to Angel/Seed Stage Investors and Partners: Recommendations for Best Practices  This White Paper can be downloaded from:

  • The Business Plans page on this Website
  • It can also be downloaded from this page on the Angel Capital Association website.  The Angel Capital Association is the leading professional and trade association supporting the success of (US) angel investors in high-growth, early-stage ventures

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