An Investment Teaser is a One or Two page long legal and professional document in which name of target investors or buyers are given. An Investment Teaser represents business process, revenue model of a company, past sales, past investments, valuation at the time of that investment and unique selling points of company aim of which is to target potential buyers and investors aiming to instill an understanding of business in them and generating leads for the same.
Need of an Investment teaser
When a Company needs funds for its operations or further expansions the most important priority of a company is to raise maximum fund. As raising funds involves dilution of owner’s equity therefore, they want maximum valuation for their company so that they can raise a handsome amount.
In order to maximize company’s valuation, it is necessary to market it well to potential buyers and investors. This creates a demand for professional document which satisfies this need through neat and professional representation of company’s aspects which attracts target potential buyers and investors.
As there may be many buyers and investors who are genuinely interested in the company at the same time therefore the name of the company is kept confidential. Hence an Investment Teaser is Prepared without mentioning the name of the company.
Format of a general Investment Teaser
Though there is not any fixed format for the Investment Teaser but it should contain some basic elements to be relevant and aligned to the purpose for which it is being created. Below are some elements which must be included in any Investment teaser.
- Industry Position – It should contain the industry’s overview and how competitive industry is together with the current and projected market share of the company.
- Finances – It should contain financial section of company including last month sales, yearly sales, gross margin and future sales projections.
- Logistics and Distribution – It should clearly state the distribution network and logistics cost as that is a very important aspect which cannot be overlooked.
- SWOT Analysis – It should contain strengths, weakness, opportunity and Threats of a company so that it will help investors in making a rational decision.
- Geography of a business – It should clearly state the geographical aspect of business like from which region there is most demand, because some investors may have a distribution network in a particular region and if it matches the demand aspect of company, they may show interest.