On deck

When it comes to meeting with investors, a simpler pitch deck is better

Pitch decks in San Francisco and New York tend to be simpler. Getty Images

There's something about California pitch decks that Houston companies can learn a thing or two from. Most of them are simpler and highlight those few key points that really show a company might be a success. Simpler, in this case, is good.

However, the investor pitch deck doesn't get you the investment, the deck gets you the meeting. And when an investor is considering a company to meet with, they don't want to comb through scientific detail before getting to know the entrepreneur. It's the entrepreneur who we want to talk to. We want to see and hear their ability to communicate the complex information.

The simple pitch deck is crucial for the entrepreneur to get that initial meeting. It forces the entrepreneur to showcase their best and most important key metrics. Then, it's the entrepreneurs live performance is the real key to attaining an investment.

In Houston — and in other more conservative towns — we tend to see pitch decks that have a lot more information density on each page. It ends up being a traditional business plan, but in landscape orientation instead of portrait orientation.

A lot of more traditional investors in cities like Houston must prefer this additional detail in the deck, right?

Perhaps, but the trend I see is that cities where more venture capital dollars are raised (seed-stage and otherwise) tend to have simpler pitch decks for that initial outreach. San Francisco's are simpler than New York's. New York's are simpler than Austin's. Austin's are simpler than Houston's. And so on.

Maybe I am wrong to recommend having the simpler pitch deck in an environment where there are fewer investors and fewer deals. However, when the simpler pitch deck can be made by cutting away parts of the longer more complex one, shouldn't entrepreneurs be able to create this pitch deck? The process is boiling down the core message, and who doesn't want to work on that?

Work on that elevator pitch and work on that short pitch deck. Of course you need to detail, but sometimes you need the simplicity.

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Mark Friday is an associate leading venture capital investments at Houston-based Cathexis Holdings LP.

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Building Houston

 
 

You can now hop online and invest in this promising cell therapy startup. Photo via Getty Images

A clinical-stage company headquartered in Houston has opened an online funding campaign.

FibroBiologics, which is developing fibroblast cell-based therapeutics for chronic diseases, launched a campaign with equity crowdfunding platform StartEngine. The platform lets anyone — regardless of their net worth or income level — to invest in securities issued by startups.

The funding, according to a press release, will be used to support ongoing operations of Fibrobiologics and advance its clinical programs in multiple sclerosis, degenerative disc disease, wound care, extension of life, and cancer.

"We're excited to partner with StartEngine on this campaign. StartEngine has over 600,000 investors as part of their community and has raised over half a billion dollars for its clients," says FibroBiologics' Founder and CEO Pete O'Heeron, in the release.

"This is an exciting time at FibroBiologics as we continue progressing our clinical pipeline and developing innovative therapies to treat chronic diseases," he continues. "This new funding will fuel our growth in the lab and bring us one step closer to commercialization."

The campaign, launched this week, already has over 100 investors, at the time of publication, and has raised nearly $2 million, according to the page. The minimum investment is set at around $500, and the company's indicated valuation is $252.57 million.

In 2021, FibroBiologics announced its intention of going public. Last year, O'Heeron told InnovationMap on the Houston Innovators Podcast of the company's growth plans as well as the specifics of the technology.

Only two types of cells — stem cells and fibroblasts — can be used in cell therapy for a regenerative treatment, which is when specialists take healthy cells from a patient and inject them into a part of the body that needs it the most. As O'Heeron explains in the podcast, fibroblasts can do it more effectively and cheaper than stem cells.

"(Fibroblasts) can essentially do everything a stem cell can do, only they can do it better," says O'Heeron. "We've done tests in the lab and we've seen them outperform stem cells by a low of 50 percent to a high of about 220 percent on different disease paths."


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