Over the last couple of weeks, I’ve had the chance to see and critique a lot of early-stage company presentations. One criticism that comes up again and again is that scientist-entrepreneurs waste too much time talking about the details of their discovery and not enough time on the business opportunity.
When you’re pitching to investors, don’t spend more than a quarter of the time describing the science.
In one presentation I saw, the title slide was something like, “Inhibition of Protein X by blah blah blah.” I groaned. I knew what was coming. In a ten minute talk, the presenter spent 13 minutes discussing the details of his technology and 2 minutes on the market potential. The scientist felt that it was important for his audience to understand his technology and to convince them that it works.
Scientists, pay attention. Raising money from investors isn’t like raising grant money. When raising grant money, the quality of the science is the whole game. You have to convince the reviewers that your methods are sound and your findings are correct. Reviewers care about the details of your protocols and your publication history. But the reason things work this way is because the only return granting organizations are looking for is more high quality science.
Investors are interested in a different kind of return. They’re interested in economic returns. Thus, in your initial conversations with investors, you’ll find that they’re willing to assume that the science works, in order to dive in on questions of market size, IP protection, and management. As one of the VCs at last week’s Texas Life Science Conference put it, “I’ll spot you the science, now how am I going to make money?”
That’s not to say that investors don’t care at all if the science works or not. They’re just filtering out opportunities in a different order. Due diligence on the technology comes after considering the market potential and the talent of team.
Look, I know that the science is the interesting part. I understand that it’s your life’s work and the most important thing in the world to you. But nobody is going to invest in your idea if you don’t tell them how it’s valuable to them.
