The Executive Voice

Your Investor Presentation May Be Missing Something Important

Your investor presentation is probably in good shape. You've worked with your investor relations or public affairs team to communicate your financial performance, business strategy and growth opportunities. You've refined the narrative, checked the numbers and prepared for questions.

But even a well-crafted presentation can be improved. And when substantial investment decisions are at stake, small improvements can have an outsized impact.

While investors are weighing potential returns against risks, questioning your assumptions, they’re also deciding whether they trust your judgement.

And what's going through their minds will differ.

Institutional investors may focus on capital allocation, competitive positioning and financial assumptions. Retail investors vary widely in their experience and investment priorities but may be particularly interested in management's personal stake in the business and the risk of future share dilution. Investors in private companies may have additional concerns about governance, influence and their ability to exit. (I will cover the nuances of presenting to these different types of investors in future issues of this newsletter).

Regardless which investor you’re looking to attract there is a way to improve your investor pitch that may not have occurred to you and that is to borrow from the best sales approach on complex enterprise pursuits, those valued $50M and upwards.

The best sales professionals spend a lot of time tunnelling deep into the hearts and minds of prospective buyers: turning over each decision-maker’s personal and professional agendas, reflecting on their emotional and rational drivers, values, biases, desires, fears, alliances, etc. so that the persuasive message lands with a bang and not a whimper.

Apply that same discipline to your investor presentations. Don't just anticipate questions. Work to first excavate the thinking, emotions, expectations and concerns behind the polite veneer of your potential investor persona.

And yet, I can bet you spend more time on the detail of your company, or if you’re a VC, on the detail surrounding the tech startup you’re promoting.

Also, persuasion is more effective when you say, “This might not be for you.” Your aim is not a slick presentation, it’s to have your audience be more confident in you because you’re not over-selling.

Put This One Thing Into Practice:

You may think you know your investors well, but don't assume you know what's on their minds on the day. A day before a presentation, ask yourself: “What’s going on at our company, in the world or the financial markets at this moment that might negatively influence my audience’s thinking or feelings about what I’m presenting?” And then adjust your message accordingly.

Extra tip: Lead with tension, that is open your presentation by talking about that sudden shift or shakeup. Show confidence by communicating a clear path forward.

Communication That Earns Influence

What Investor Relations Can Teach Us About Winning More Big Tech Deals

Sales and marketing at technology companies routinely describe their products and services as investments. They promise tech buyers greater productivity, lower costs, competitive advantage and business growth.

Yet many sales pitches, tenders, and presentations focus more on the technology and its benefits than on why the buyer should invest in it.

Here's where you can borrow an important discipline from investor relations.

When you're asking investors to commit substantial funds, you need to build a credible investment case. That means explaining the potential returns, the assumptions underpinning them, the risks involved, and what needs to happen for those returns to materialise.

Why should selling enterprise technology be any different?

Your buyers aren't simply purchasing a solution. They're committing money, people and resources, sometimes for years. They need to justify that commitment to others, often including a CFO who will scrutinise the numbers and question the assumptions.

And here's where your champion at the buyer becomes especially important.

Your champion may already believe in your solution, but can they make a compelling investment case when you're not in the room?

Work with them to understand the financial and operational arguments that will matter to the decision-makers. And if you don't have a champion, don't neglect this discipline. You still need to anticipate the questions and objections that could determine the outcome.

Now, building a sound investment case is only half the job.

How you communicate that case can make the difference between an argument that gets lost in a lengthy proposal and one that people understand, remember and can confidently explain to others.

Clarity, persuasive language and a well-structured argument are just as important as credible numbers. Your job is to make the value of the investment easy to understand without exaggerating the promise or disguising the risks.

Put This One Thing Into Practice:

Before your next major sales proposal, review your investment case through the buyer's CFO's eyes. Does it clearly and eloquently explain the costs, potential returns, risks and assumptions?

Extra tip: Ask your buyer champion (or someone on your team) to explain the case back to you without referring to your slides. If they struggle, simplify your argument.

Anthropic’s Trillion-Dollar IPO: Investors Want In, But Questions Remain

Anthropic's upcoming IPO could become one of the largest in history. The AI company behind Claude is seeking a valuation of up to US$1.4 trillion, with shares expected to begin trading on Nasdaq on 19 November. Investor demand is enormous. By Thursday, the IPO was reportedly six times oversubscribed. Retail investor enthusiasm is also growing, with research firm Vanda forecasting US$250 million in net buying on the first trading day, potentially a record for an IPO. Despite the enthusiasm, some institutional investors are questioning whether Anthropic can sustain its competitive advantage and justify its valuation. Reuters also reports frustration among some investors about unanswered questions during the IPO roadshow. At one meeting, bankers reportedly relied largely on prepared statements without giving investors an opportunity to ask questions.

My POV

Anthropic deserves credit for providing detailed financial information about its extraordinary growth and the substantial risks ahead. But transparency isn't just about publishing numbers. It's also about being prepared to explain them and answer difficult questions. If Reuters' reporting about the IPO roadshow is accurate, failing to give investors an opportunity to ask questions was a misstep. Even companies attracting enormous investor interest can't afford to take that confidence for granted. Of course it may be that Anthropic is feeling the pressure, and not answering questions is their way to control the narrative at this sensitive time. But, is this the right move?

Phrase of the Week

Investment Thesis: A reasoned case for why an investment is worth making, supported by evidence, expected returns, risks and assumptions. A compelling thesis explains not just the opportunity, but why it makes financial or strategic sense. For a deeper look at creating a winning investment thesis, read this article.

A question running through this week’s issue: how much confidence comes from the figures, and how much from believing the story around them?

A Three-Minute Test of How Persuasive You Are

You may have a strong argument, but are you communicating it in a way that makes people want to listen, believe you and act?

More than 2,000 years ago, Aristotle identified three Appeals that remain central to persuasion: Logos (reason), Pathos (emotion) and Ethos (integrity).

Before your next important persuasive email, presentation or conversation with investors or buyers, put your message through these three tests:

1. Logos: Does my argument make sense?

Have I provided convincing evidence and explained my reasoning? Could someone challenge my conclusions because I’ve left out an important fact or assumption?

2. Pathos: Have I considered how people feel?

What does my audience care about, hope to achieve or fear losing? Does my message acknowledge what's at stake for them?

3. Ethos: Why should they believe me?

Have I demonstrated sound judgement, credibility and relevant expertise? Am I making claims I can substantiate?

One final test: If your message is strong on two Appeals but weak on the third, what could you change to strengthen it?

A word of caution: Aristotle also recognised the importance of understanding your audience’s perspective when applying his three Appeals. To use them effectively, you need to consider your audience’s frame of reference and values. Otherwise, you risk alienating the very people you’re trying to persuade.

If this helped you think differently about communication, forward this newsletter to someone who leads, sells or explains complex ideas in tech.