Investor Engagement Strategy for Life Science Startups

General Partner at MarsBioVC, Dr. Llewellyn Cox describes his and others’ views on investor engagement, plus smart strategies that entrepreneurs can employ in this article posted on University Lab Partners site.

Some key take-aways:

• Three key questions that should all be a definitive “YES” before you approach a VC are:

  • Do they invest in the industry segment my company aims to enter? Pitching a small molecule drug to an investor who only invests in medical devices is a waste of both of your time.

  • Do they invest at the right stage of development? There is a huge variety of investors at all stages of company growth, but many are focused on a particular stage (seed, series A, B, etc.).

  • Do they invest in companies that look like mine? How big are (were) their current portfolio companies, where are they located, and are they addressing solutions for similar customers?

• The Initial Approach: “The warmer the introduction, the higher the likelihood of success.”

• DO NOT COLD CALL ANYONE EVER!

• The Pitch: “Just the facts, Ma’am.”

  • Attach a well-polished deck that clearly outlines the opportunity, team, and strategy. Keep it under 20 slides and attach it to your email as a pdf. The initial determination of whether you are interesting to talk to is primarily based on the team and business model, so make it very clear who you are, what you plan to do, and how that will [eventually] make money.

  • Keep your email short and tidy. Be clear, concise, and stick to the relevant facts.

• Engaging with investors is about making it as easy as possible for them to say “yes.”

You can read the full article on how to best engage investors here.