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For Entrepreneurs

Preparing for a Meeting at Inova Strategic Investments:

We have put together a presentation outline to help you prepare for an introductory meeting with Inova Strategic Investments. The outline is meant to be helpful.  If there are other important points, please add them in.

Summary:

  • In a concise manner, describe what your company does:
    • What do you sell?
    • Who do you sell it to?
    • Why do they buy it?
  • Interactions with Inova to date
  • Other healthcare provider customers, partners and prospects
  • Founding date (month/year)
  • Location(s)
  • Number of employees (full-time, part-time)
  • Management
  • Market Opportunity

Describe the Target Market:

  • How big is the market today?
  • How fast is it growing?
  • What are the growth/opportunity drivers for your product/services?

Fit with Inova:

  • What is the value proposition for the Inova Health System (why is this important to Inova)?
  • What is the history of your working relationship with the Inova Health System to date?
  • What are the next steps with the Inova Health System?

Distribution/Sales Strategy:

  • How will you reach potential customers?
  • Who are the decision makers within your target customers and how do you gain access to them?
  • How much will this sales process cost?
  • List your current customers
  • Who are your key customers?
  • If you are pre-revenue, who are your beta customers or who will you target as beta customers?
  • What does your sales pipeline look like?

Product Development:

  • Status of product?
  • Outline key milestones and expected completion dates.

Business Model:

  • What is your revenue model?
  • What is your economic model?
  • List prior years’ financials and three years of forecasted revenues and expenses.
  • What are the key assumptions in your model?
  • How and when will you make money?

Competition:

  • Who are your competitors?
  • How do you differentiate yourself?
  • What is your sustainable advantage?

Historical Financings:

  • Current investors
  • Amount raised
  • Date raised
  • Current capitalization table

Proposed Financing:

  • Total amount to be raised
  • Amount already committed
  • Valuation expectations
  • Expected future financings

Writing a Summary Business Plan for Inova Strategic Investments:

The goal of your business plan should be to generate enough interest to make Inova Strategic Investments want to set up a follow-up meeting.  If you choose to produce a written plan, it should be from one to three pages long.  Presentation formats can be longer.

Answer succinctly the basic "who, what, why and how" questions:

  • Who is on the team?
  • What do you sell and to whom?
  • Why do your customers buy your products or services?
  • How much money is required?

Your business plan should include:

  • Brief history of the company
  • Description of products or services and your value proposition
  • Market overview
  • Business model overview
  • Product development status
  • Distribution channels
  • Management bios
  • Summary historical and projected income statements
  • Description of short and long-term financing requirements

Due Diligence with Inova Strategic Investments:

As former entrepreneurs and operating executives, we are respectful of your time and are committed to providing regular feedback throughout the review process. The process usually starts with a meeting with the management team.  If all goes well, we work with the management team to identify the appropriate next steps and outline the due diligence process. The diligence process will include both the Inova Strategic Investments team and subject matter experts from the Inova Health System.

The due diligence process will include significant collaboration between the Inova Strategic Investments team, the Inova Health System and the prospective portfolio company. This collaboration will include a thorough review and joint reworking of the business plan with the goal of maximizing the company's long-term prospects for success.

Common steps in the due diligence process include:

  • In-depth assessment of the product/services by Inova subject matter experts to assess their efficacy, value proposition and strategic impact at Inova.
  • Pilots and/or product tests at Inova
  • Conducting significant industry and competitive research
  • Calling references (both from lists provided by the company and our own network)
    • Industry medical, scientific and/or technology experts
    • Customers and prospects
    • Market analysts
  • In-depth interviews with management
  • Reference checks on senior management
  • Thoroughly reviewing all:
    • Organizational documents
    • Capitalization tables
    • Stock option plans
    • Financial statements
    • Financial projections
    • Marketing materials
    • Contracts
    • Sales pipelines
    • Intellectual property
    • Technical documentation