INNOVATOR’S	
  TOOLKIT	
  
Perfecting The Investor Pitch
Alex Raczenko
Entrepreneur in Residence
 How	
  can	
  you	
  tell	
  an	
  
Entrepreneur	
  is	
  	
  
	
  Pitching?	
  
	
  
Their	
  lips	
  are	
  moving!	
  
 
Pitching	
  is	
  KEY	
  to	
  Entrepreneurial	
  success	
  
	
  
	
  
	
  
Do	
  it	
  well...	
  
People	
  Invest	
  in	
  YOU	
  
	
  
	
  
	
  
Do	
  it	
  poorly...	
  
They	
  will	
  cross	
  the	
  street	
  to	
  avoid	
  you	
  
	
  
	
  
What’s	
  it	
  about?	
  
	
  
v A	
  Good	
  Pitch	
  IS	
  NOT	
  about....	
  
§  What	
  you	
  want	
  to	
  say	
...
What’s	
  it	
  about?	
  
	
  
v A	
  Good	
  Pitch	
  is	
  ALL	
  about....	
  
§  What	
  your	
  audience	
  NEEDS	...
What’s	
  it	
  about?	
  
	
  
v A	
  Good	
  Pitch	
  is	
  ALL	
  about....	
  
§  To	
  moJvate	
  them	
  to	
  agr...
What’s	
  it	
  about?	
  
v A	
  Good	
  Angel	
  INVESTOR	
  Pitch	
  IS	
  NOT	
  about	
  
Selling....	
  
§  Your	
...
What’s	
  it	
  about?	
  
v A	
  Good	
  Angel	
  INVESTOR	
  Pitch	
  IS	
  NOT	
  about	
  
Selling....	
  
§  Your	
...
What’s	
  it	
  about?	
  
v A	
  Good	
  Angel	
  INVESTOR	
  Pitch	
  is	
  ALL	
  about	
  
Selling....	
  
§  The	
 ...
What’s	
  it	
  about?	
  
	
  
v A	
  Good	
  Angel	
  INVESTOR	
  Pitch	
  is	
  ALL	
  about	
  
Selling....	
  
§  Y...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  company	
  perspecJve:	
  
§  Build	
  a	
  manageable	
  and	
  a...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  company	
  perspecJve:	
  
§  Build	
  a	
  manageable	
  and	
  a...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  company	
  perspecJve:	
  
§  Build	
  a	
  manageable	
  and	
  a...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  personal	
  perspecJve...	
  
§  Develop	
  Confidence	
  
• Find	
...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  personal	
  perspecJve...	
  
§  Develop	
  Confidence	
  
• Find	
...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  personal	
  perspecJve...	
  
§  Develop	
  Confidence	
  
• Find	
...
More	
  than	
  a	
  story....	
  
v 	
  From	
  a	
  personal	
  perspecJve...	
  
§  Develop	
  Confidence	
  
• Find	
...
More	
  than	
  a	
  story....	
  
	
  
GET	
  FUNDED!	
  
	
  
	
  
A	
  GREAT	
  place	
  to	
  Pitch	
  in	
  Alberta...	
  
	
  
	
  
	
  
	
  
A	
  GREAT	
  place	
  to	
  Pitch	
  in	
  Alberta...	
  
	
  
§  Lead	
  By	
  Henry	
  Kutarna	
  
§  200+	
  Members...
Not	
  Easy...	
  
	
  
Over	
  200	
  deals	
  screened	
  annually	
  
	
  
	
  
	
  
	
  
	
  
	
  	
  
Only	
  the	
  BEST	
  survive	
  
	
  
Over	
  200	
  deals	
  screened	
  annually	
  
	
  
	
  
	
  
	
  
	
  
Only	
  ...
Who	
  do	
  you	
  pitch	
  to...	
  
	
  
If	
  you	
  want	
  their	
  Investment..	
  
	
  
	
  
	
  
	
  
	
  	
  
Yo...
The	
  12	
  KEY	
  QuesMons	
  
1.  Why	
  should	
  I	
  pay	
  a_enJon? 	
   	
   	
  The	
  IntroducJon	
  
2.  Do	
  ...
Business	
  Model	
  Canvas	
  Alignment	
  
1.  The	
  IntroducJon 	
   	
   	
   	
  	
  
2.  The	
  Problem	
   	
   	
...
Business	
  Model	
  Canvas	
  Alignment	
  
1.  The	
  IntroducJon 	
   	
   	
   	
  	
  
2.  The	
  Problem	
   	
   	
...
1.	
  The	
  IntroducMon	
  
v 	
  High	
  level	
  summary	
  of	
  answers	
  to	
  the	
  12	
  quesJons	
  
§ Basis	...
2.	
  The	
  Problem	
  
v  Understand	
  your	
  Customer	
  PAIN	
  	
  
§  Describe	
  “A	
  Day	
  In	
  The	
  Life...
2.	
  The	
  SoluMon	
  
v  Describe	
  how	
  you	
  take	
  Customer	
  PAIN	
  away	
  
§  Describe	
  “A	
  Day	
  I...
4.	
  The	
  Market	
  
v  Describe	
  the	
  market	
  for	
  your	
  soluJon	
  	
  
§  How	
  many	
  customers	
  ex...
5.	
  The	
  CompeMMon	
  
v  Name	
  your	
  Direct	
  CompeJtors	
  
v  Show	
  your	
  CriJcal	
  DifferenJaJon	
  
§...
6.	
  The	
  Technology	
  
v  Show	
  your	
  product	
  
§  Product	
  status...	
  Test,	
  producJon,	
  delivery	
 ...
7.	
  Approach	
  to	
  Market	
  
v  How	
  do	
  you	
  build	
  Awareness	
  in	
  Target	
  Market	
  
§  Web	
  sit...
8.	
  The	
  Revenue	
  Model	
  
v  Show	
  unit	
  pricing	
  
v  Describe	
  cash	
  flow	
  model	
  
§  SAAS	
  –	
...
9.	
  The	
  Revenue	
  Forecast	
  
v  Show	
  5	
  year	
  Revenue	
  Targets	
  
§  Top	
  line	
  Revenue	
  
§  Co...
10.	
  The	
  Milestones	
  
v  Show	
  major	
  OperaJonal	
  Milestones	
  only	
  
§  Varies	
  according	
  to	
  co...
11.	
  The	
  Team	
  
v  Show	
  key	
  execuJves	
  
§  Show	
  WHY	
  they	
  are	
  ideal	
  for	
  this	
  company	...
12.	
  The	
  Ask	
  
v  Show	
  Money	
  already	
  invested	
  
§  Founders,	
  Friends	
  and	
  Family	
  
§  Total...
More	
  info....	
  
	
  
	
  
WWW.Innovatecalgary.com	
  
	
  
	
  
	
  
	
  
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Innovate Calgary's Presentation on Perfecting the Investor Pitch at Startup Weekend Calgary on July 12, 2013

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This is a presentation by Alex Raczenko, EIR at Innovate Calgary in Alberta at Startup Weekend on July 12, 2013. Alex discusses the 12 key questions every entrepreneur needs to answer before raising outside capital. Following this presentation you will be able to perfect your investor pitch.

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Innovate Calgary's Presentation on Perfecting the Investor Pitch at Startup Weekend Calgary on July 12, 2013

  1. 1. INNOVATOR’S  TOOLKIT   Perfecting The Investor Pitch Alex Raczenko Entrepreneur in Residence
  2. 2.  How  can  you  tell  an   Entrepreneur  is      Pitching?    
  3. 3. Their  lips  are  moving!  
  4. 4.   Pitching  is  KEY  to  Entrepreneurial  success        
  5. 5. Do  it  well...   People  Invest  in  YOU        
  6. 6. Do  it  poorly...   They  will  cross  the  street  to  avoid  you      
  7. 7. What’s  it  about?     v A  Good  Pitch  IS  NOT  about....   §  What  you  want  to  say        
  8. 8. What’s  it  about?     v A  Good  Pitch  is  ALL  about....   §  What  your  audience  NEEDS  to  hear   §  Delivered  in  THEIR  language        
  9. 9. What’s  it  about?     v A  Good  Pitch  is  ALL  about....   §  To  moJvate  them  to  agree  to  your  ASK      
  10. 10. What’s  it  about?   v A  Good  Angel  INVESTOR  Pitch  IS  NOT  about   Selling....   §  Your  TECHNOLOGY        
  11. 11. What’s  it  about?   v A  Good  Angel  INVESTOR  Pitch  IS  NOT  about   Selling....   §  Your  PRODUCT      
  12. 12. What’s  it  about?   v A  Good  Angel  INVESTOR  Pitch  is  ALL  about   Selling....   §  The  COMPANY  you  will  build  around  the   technology  /  Product    
  13. 13. What’s  it  about?     v A  Good  Angel  INVESTOR  Pitch  is  ALL  about   Selling....   §  Your  PLAN  to  turn  their  $1MM  investment  into  a   $10  -­‐  $20  MM  Return  On  Investment  in  5  years    
  14. 14. More  than  a  story....   v   From  a  company  perspecJve:   §  Build  a  manageable  and  acJonable     • Preliminary  Business  Plan   • Investor  pitch      
  15. 15. More  than  a  story....   v   From  a  company  perspecJve:   §  Build  a  manageable  and  acJonable     • Preliminary  Business  Plan   • Investor  pitch   §  Develop  strong  foundaJon  for  related  pitches   • Customer,  Partner,  Supplier...  Etc.    
  16. 16. More  than  a  story....   v   From  a  company  perspecJve:   §  Build  a  manageable  and  acJonable     • Preliminary  Business  Plan   • Investor  pitch   §  Develop  strong  foundaJon  for  related  pitches   • Customer,  Partner,  Supplier...  Etc.   §  Align  and  balance  Market,  Business  and   Technology  Teams   • Market  Leads   • Business  and  Tech  follow    
  17. 17. More  than  a  story....   v   From  a  personal  perspecJve...   §  Develop  Confidence   • Find  your  voice...      
  18. 18. More  than  a  story....   v   From  a  personal  perspecJve...   §  Develop  Confidence   • Find  your  voice...   §  Develop  CLARITY  and  VISION   • Know  WHERE  you  are  going  and  WHY      
  19. 19. More  than  a  story....   v   From  a  personal  perspecJve...   §  Develop  Confidence   • Find  your  voice...   §  Develop  CLARITY  and  VISION   • Know  WHERE  you  are  going  and  WHY   §  Learn  to  LEAD   • Align  your  Team      
  20. 20. More  than  a  story....   v   From  a  personal  perspecJve...   §  Develop  Confidence   • Find  your  voice...   §  Develop  CLARITY  and  VISION   • Know  WHERE  you  are  going  and  WHY   §  Learn  to  LEAD   • Align  your  Team   §  Find  your  inner  CEO...   §  Build  your  Roadmap  to  SUCCE$$....      
  21. 21. More  than  a  story....     GET  FUNDED!      
  22. 22. A  GREAT  place  to  Pitch  in  Alberta...          
  23. 23. A  GREAT  place  to  Pitch  in  Alberta...     §  Lead  By  Henry  Kutarna   §  200+  Members   §  Personally  screened  and  looking  for  good  deals   §  Over  $30MM  Raised  in  past  3  years    
  24. 24. Not  Easy...     Over  200  deals  screened  annually                
  25. 25. Only  the  BEST  survive     Over  200  deals  screened  annually             Only  8-­‐12  Deals  get  to  Pitch...      
  26. 26. Who  do  you  pitch  to...     If  you  want  their  Investment..               Your  pitch  MUST  answer...  
  27. 27. The  12  KEY  QuesMons   1.  Why  should  I  pay  a_enJon?      The  IntroducJon   2.  Do  you  know  your  customer  and  their  pain?  The  Problem     3.  Do  you  take  the  pain  away?      The  SoluJon     4.  Do  you  know  your  Target  Market?    The  Market   5.  Who  else  is  doing  this  and  why  pick  you?  The  CompeJJve  Difference   6.  Is  product  ready  and  does  it  create  Barriers?  The  Technology   7.  Can  you  find  and  get  customers?    The  Approach  to  Market   8.  How  does  money  flow  from  customer  to  you?  The  Revenue  Model   9.  How  much  money  will  we  make?    The  Forecast   10.  Do  you  have  a  plan  for  my  money?      The  Milestones     11.  Can  you  execute?        The  Team     12.  How  much  $  do  you  need  and    what's  my  ROI?  The  ASK/Exit        
  28. 28. Business  Model  Canvas  Alignment   1.  The  IntroducJon           2.  The  Problem           3.  The  SoluJon               4.  The  Market               5.  The  CompeJJve  Difference         6.  The  Technology           7.  The  Approach  to  Market             8.  The  Revenue  Model             9.  The  Forecast             10.  The  Milestones                 11.  The  Team                   12.  The  Ask  /Exit                  
  29. 29. Business  Model  Canvas  Alignment   1.  The  IntroducJon           2.  The  Problem        Value  ProposiJon   3.  The  SoluJon        Value  ProposiJon       4.  The  Market        Customer  Segments       5.  The  CompeJJve  Difference    Customer  RelaJonships     6.  The  Technology        Key  Partnerships   7.  The  Approach  to  Market      Channels       8.  The  Revenue  Model      Revenue  Streams       9.  The  Forecast        Cost  Structure     10.  The  Milestones        Key  AcJviJes         11.  The  Team          Key  Resources         12.  The  Ask  /Exit        Key  AcJviJes          
  30. 30. 1.  The  IntroducMon   v   High  level  summary  of  answers  to  the  12  quesJons   § Basis  for  your  Elevator  Pitch   v Targeted  to  Investor  audience   § WHAT”S  IN  IT  FOR  THEM   v Capture  their  FULL  a_enJon  FAST.....   § OPEN  WITH  YOUR  ACES......  
  31. 31. 2.  The  Problem   v  Understand  your  Customer  PAIN     §  Describe  “A  Day  In  The  Life”  BEFORE  your  Product   §  For  ALL  customer  stakeholders   §  Across  the  enJre  Target  Value  Chain   §  QuanJfy  the  Pain  for  each  stakeholder,  for  Target   Value  Chain  and  for  Market   §  Show  your  target  customers  are  SCREAMING  for  Your   soluJon   v  Show  you  know  the  buying  moJvaJon    
  32. 32. 2.  The  SoluMon   v  Describe  how  you  take  Customer  PAIN  away   §  Describe  “A  Day  In  The  Life”  AFTER  your  Product   §  For  ALL  customer  stakeholders   §  In  the  enJre  Value  Chain  you  are  targeJng     §  Qualify  Pain  ReducJon  -­‐  Reduce,  eliminate,  OpJmize   §  Qualify  Gain  addiJon  –  enhance,  add,  expand   §  QuanJfy  your  VALUE  PROPOSITION  (  $$$VP$$$  )  for     §  Each  stakeholder   §  EnJre  Value  Chain   §  Company   §  Target  Market    
  33. 33. 4.  The  Market   v  Describe  the  market  for  your  soluJon     §  How  many  customers  exist  for  your  product   §  How  much  do  they  spend  now  on  soluJons   v  Show  your  Strategy  to  Market  Dominance   §  Show  AcJonable  Target  Market  SegmentaJon   §  Show  Current  Market  PenetraJon   §  Show  your  market  penetraJon  targets  and   Jmeframes   v  Describe  market  sensiJviJes  and  Growth  Rate  
  34. 34. 5.  The  CompeMMon   v  Name  your  Direct  CompeJtors   v  Show  your  CriJcal  DifferenJaJon   §  Why  pick  you  Today?   v  Show  you  deliver  compelling  VALUE   v  Describe  past  success  against  compeJJon   v  Show  TRACTION    
  35. 35. 6.  The  Technology   v  Show  your  product   §  Product  status...  Test,  producJon,  delivery  dates   §  Scalability  Model   v  Describe  Manufacturing  plan  and  partnerships   v  How  do  you  create  barriers  to  entry?   §  Secret  Sauce   §  IP  strategy   §  Strong  exisJng  Partnerships  /  Channels   v  Describe  how  IP  will  moJvate  AcquisiJon  
  36. 36. 7.  Approach  to  Market   v  How  do  you  build  Awareness  in  Target  Market   §  Web  site,  tradeshows,  Social  Media,  press   §  Awareness  Scale  Up  Strategy   v  How  do  you  saJsfy  demand?   §  Direct  sales  -­‐  Sales  Force   §  Channels  –  What  they  bring  to  you   §  Market  Scale-­‐up  Strategy     v     Describe  sales  cycle  and  Funnel  
  37. 37. 8.  The  Revenue  Model   v  Show  unit  pricing   v  Describe  cash  flow  model   §  SAAS  –  Recurring,  SubscripJon,  Support,  Services   §  Billing  cycles   v  Show  how  $  flows  from  customer  to  you   §  For  each  channel   §  Show  your  target  margins   §  Show  how  much  your  channels  make   v  Show  your  gross  /  net  margin  targets    
  38. 38. 9.  The  Revenue  Forecast   v  Show  5  year  Revenue  Targets   §  Top  line  Revenue   §  Costs   §  EBITDA   v  Show  related  Customer  or  Unit  counts   v  Show  key  revenue  growth  events   v   Show  anJcipated  financings     v  Show  breakeven  point  
  39. 39. 10.  The  Milestones   v  Show  major  OperaJonal  Milestones  only   §  Varies  according  to  company   §  Show  Time  Line   v  Historically  –  what  have  you  done  so  far   v  Future  –  show  you  have  a  plan  for  Growth   v  Show  you  have  a  plan  for  their  $$   v  Overlay  Phases  of  strategy  over  appropriate   milestones    
  40. 40. 11.  The  Team   v  Show  key  execuJves   §  Show  WHY  they  are  ideal  for  this  company   §  Show  what  roles  they  play  in  company   §  Show  team  balance  –  Market,  Business,  Tech   v  Show  current  Board  members   §  Advisory,  Fiduciary     v  Show  external  partners     §  Legal,  AccounJng,  manufacturing,  channels   v  Show  outstanding  recruiJng  needs    
  41. 41. 12.  The  Ask   v  Show  Money  already  invested   §  Founders,  Friends  and  Family   §  Total  Prior  Raises   §  Grants,  loans     §  Restate  this  years  Revenues   v  Specify  THE  ASK   §  How  much  $  are  you  looking  for   §  what  %  investment  will  buy   §  preferred  investment  mechanism   v  Show  use  of  proceeds  –  high  level  %  only   v  Discuss  EXIT  Strategy   Show  comparables  
  42. 42. More  info....       WWW.Innovatecalgary.com          

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