A successful fundraising campaign should begin with understanding you choices and include a clear communications strategy.

Charlotte Laurent-Ottomane and De’Ann Weimer from nvestcom.com wrote an insightful article about fundraising strategies. Below is my summary of their most important tips for building a communications plan that is relevant to biotech companies.

Raising capital is a necessity for some life sciences groups and there are essentially two paths to follow:

1. A venture capital injection to fund research and operations.
2. An Initial Public Offering (IPO).

Regardless of your funding sources, competition for capital is fierce.

How and what you communicate with potential investors is key, both before and after the sale.

START WITH DEVELOPING A CAPITAL COMMUNICATIONS PLAN

• An effective capital communications plan builds investor confidence by anticipating questions and answering critical information upfront.
• Investors want evidence that management has a clear business plan that addresses any possible barriers or hurdles in getting to market.
• Investors need to know how your product or service is distinct in meeting an unsatisfied research or medical need, and evidence that the cost is competitive.
• They should understand its place in the market and how it gets there – with both regulation and distribution factors in mind.

All of these points are key in creating a capital communications plan that builds investor confidence, and meets market and regulatory requirements.

ELEMENTS OF AN EFFECTIVE CAPITAL COMMUNICATIONS PLAN

Gaining investor confidence is your goal and in order to earn that level of trust your communication strategy should include:

• Your Unique Story and Vision for the Growth of the Company
• Proof of a Strong and Ambitious Management Team detailing relevant experience and knowledge
• A Clear Business Plan that defines targeted growth markets, challenges and realistic (not rosy) projections for costs, time frames and profitability
• Undisputed Product/Service Uniqueness presented through a detailed competitive analysis
• Consistency in your story and presentation

Click the following link to read the complete article: How to raise money and keep your investors happy once you get it