The Simplified Pitching Guide for MSME and MTC (Simplified Pitching Guide) provides structured guidance on crafting compelling investment pitches, ensuring that businesses can present their fundraising objectives clearly and persuasively. It serves as a practical resource designed to help micro, small and medium enterprises (MSME) and mid-tier companies (MTC) effectively communicate their value proposition, business model, and growth potential to investors.
The Simplified Pitching Guide was developed in line with Initiative 7b of the Securities Commission Malaysia’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028) (MSME and MTC Roadmap).
The SC’s MSME and MTC Roadmap is aimed at better positioning the capital market as an attractive and robust source of financing for MSME and MTC.
- Startups
- MSME
- MTC
Typically, investors in the following segments need companies to do a pitch on their business in exchange for funding:
Private Market
- Venture Capital / Private Equity
- Equity Crowdfunding
Public Market
- LEAP Market and
- ACE Market
Outlines the must-haves to capture investors’ interest and provides tips on transforming a vision into a compelling narrative that secures funding.
Provides MSME and MTC with a pitch template as a reference when preparing for presentations to investors.
A business story is a story that tells investors why they should invest in a particular company.
The business story should reflect the following key aspects of a company.
Create a winning pitch by covering these components that capture investors’ interest and tell a powerful story about your business.
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Business Overview
- Explains the company’s core business activities, how the business started, and/or vision and mission of the company.
- Introduces the company and sets the stage for the rest of the pitch.
- It helps investors understand the nature of the company’s business.
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Market Opportunity
- Explains the market that the company operates in, covering its size (e.g., total addressable market, serviceable addressable market), and current trends of the products or services offered.
- It helps investors assess the market opportunity and understand the company’s value proposition
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Business Model & Strategy
- Explains how the company generates revenue and its strategy for growth.
- Explains the business model, competitive advantages, and how the company integrates environmental, social, and governance (ESG) factors into its operations.
- It helps investors to assess the company’s profitability, sustainability and long-term value.
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Risk Factor
- Outlines the company’s potential risks as well as mitigation plans or measures.
- Transparency about risks helps build investor trust, allowing investors to make informed decisions and assess the company’s long-term viability.
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Financial Information
- Presents the company’s historical financial performance and future projections, providing the investors insights into the company’s past success and future potential.
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Management & Governance
- Introduces the leadership team and governance practices of the company.
- Highlights the people behind the business and demonstrate the company’s strong commitment to good governance.
- Investors are more likely to allow a company’s strategy to unfold, even during periods of volatility - but only if they believe in the vision. So, the business story must be convincing.
- Frame the pitch so that the value proposition is clear and compelling. Investors need to quickly understand why your business matters, what problem it solves, and why it is a winning investment.
- Clearly highlight what sets your company apart - why your product or solution is better than what is available in the market.
- The pitch should be clear enough for either a 15-year-old or a 60-year old to understand. They do not have to buy into your vision, but they must understand why it matters.
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Know Your Audience
Use clear, tailored language for experienced investors addressing their specific interest eg., financials, the market size, and how you will grow in the long term. Avoid overly generic or cookie-cutter presentations. -
Clarity & Focus
Explain the company’s goals, strategy, and what makes you special. Avoid non-essential information or buzzwords. -
Metrics that Matter
Highlight important business metrics e.g., sales growth or customer retention that show how well you are doing. Link these to financial goals. -
Authentic
Align the management team on key messages, rehearse and speak genuinely to establish credibility.
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Show Value
- Explain what makes your company strong and why investors should back you.
- Pick the right competitors as the measuring base to convince your business value.
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Be Transparent
Provide honest financial data and realistic targets.
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Update Regularly
Keep your pitch up-to-date with any changes in your business or the market you are in.
Show your commitment to value creation and the market.
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Anticipate Questions
Think about what investors might ask and be ready with answers.
Table of Content
- Company background - origin story / opportunity spotted
- What we do - solutions / products / services
- Our achievements - success stories
- Company’s financials - past 5 years
- Why we are different - competitive edge / competitors
- Growth strategies - new market opportunities
- Financial projection - next 5 years
strategies for expansion and financial
projections.
- Milestones - strategic goals
- The ask - indicative usage of funds
- Management team - leadership and experts
roadmap to execute the vision successfully.
Call to Actions
- If you have any questions on this Simplified Pitching Guide, please email to [email protected]
- MSME and MTC interested to raise capital, re-engineer their business models, enhance their growth strategies can check out the Elevate 2.0 programme by Capital Markets Malaysia. Queries can be sent to g[email protected]
The vernacular series will follow subsequently.
