Investor Deck
Investment Structure (e.g., Equity, Debt)
This section describes the financial instruments being offered to investors, such as equity, convertible notes, or debt. It details the terms, conditions, and rights associated with each type of investment, providing clarity on what investors will receive in exchange for their capital.
SECTION
Investment and Returns (Vital for Investors)
IMPORTANCE
8
/10
Understanding the investment structure is crucial for investors as it directly affects their decision-making process. It outlines their potential returns, the level of risk involved, and their rights as shareholders or debt holders.
WHAT SHOULD BE INCLUDED:
Type of Investment: Equity shares, convertible notes, preferred stock, or debt instruments.
Equity Offered: Percentage of ownership offered to investors.
Valuation: Company valuation at which the investment is being made.
Terms and Conditions: Specific terms including dividends, interest rates, conversion rights, voting rights, and liquidation preferences.
Exit Strategy: Expected pathways for investor exit, such as an IPO, acquisition, or buyback plans.
TIPS
Clear and Concise Explanation: Provide a straightforward explanation of the investment terms to ensure all potential investors understand what they are getting into.
Fair and Attractive Terms: Structure the terms to be attractive yet fair to both parties, ensuring that they align with market norms and investor expectations.
Highlight Investor Protections: Detail any protective provisions or rights that safeguard investor interests.
EXAMPLES
A tech startup: Offers Series A preferred stock with anti-dilution protections, a 5% dividend rate, and priority in liquidation, setting terms that balance risk and reward effectively.
A clean energy project: Uses convertible notes for initial funding, providing investors with the option to convert debt into equity at a discount during the next funding round.
An established SME looking to expand: Issues debt securities with a fixed interest rate and a maturity date, offering a secure investment with a predictable return.