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"Perfecting the Pitch" A Compelling Case for Investment


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  • 1. “ Perfecting the Pitch” A Compelling Case for Investment presented by & North Jersey Partners
  • 2. MULTI-STAGE TUTORIAL Ends January 31, 2010 Webinar Repeated Three Times, Archived For Use One on One Coaching 4 Hours of Coaching Videotaping 2-3 Dates for Taping at 2-3 Locations ½ Day Time Slot to be Assigned Copy of Videotape for Own Use Free Posting on Capital Connections
  • 3. MULTI-STAGE TUTORIAL Ends January 31, 2010 Webinar Repeated Three Times, Archived For Use One on One Coaching 4 Hours of Coaching Videotaping 2-3 Dates for Taping at 2-3 Locations ½ Day Time Slot to be Assigned Copy of Videotape for Own Use Free Posting on Capital Connections
  • 4. CONFIDENTIALITY Angels & VC's will rarely sign NDA in advance of Presentation Do not Disclose Secret Sauce Assume that Information will be seen Publicly Review any Concerns with Intellectual Property Attorney
  • 5. The Investment Pitch Appeal to the Investor's Needs Angel Investor Individual's Own Money Passion Venture Capital Firm Pool of Investor Money Profile of Prior Investments Return on Investment Return of Principal
  • 6. Passion/Profile Angel Investor: Personal Connection Venture Capital Firm: Portfolio Focus RESEARCH
  • 7. Return on Investment 10x Multiple of Investment in 5 to 7 years Percentage of Company Given Up in Exchange for Funding Earlier in the Venture, More Risk=Greater Reward Return of Principal Define Risk Appropriate to Investment Requested Exit Strategy: Acquisition, IPO What Have Other Comparable Ventures Done?
  • 8. What is compelling Today for an investor to say yes? Entry point of Investment that will make a difference — as opposed to later --change in results related to investment --understand your key milestones Proof of Concept Seeking to Show Market Validation Venture Stage: Prototype: Expert Opinion, Data, Research Pre-Revenue: Testimonial, Purchase Orders, Advisory Board Early Stage: Trend, Scalability, Repeat Customers, Market Validation
  • 9. IMMEDIATE GOAL OF PRESENTATION: Whet Investor's Appetite Get A Second Meeting to Review Details Get to Due Diligence
  • 10. KEY PAGES OF SLIDE PRESENTATION 8-10 Minutes, Select Key Slides Clear, Concise, Compelling Cover Page Problem Being Solved Solution Being Provided Technology Being Used Progress To Date Market Being Addressed Customer Profile Sales Strategy Management Team Outside Support Competition Financial Projections Funding Summary Exit Strategy Summary Contact Information
  • 11. COVER PAGE Company Name & Logo Presenter Audience (if appropriate) ‏ Date
  • 12. Define The Problem What is the Pain You are Solving? Who is involved? The Evidence to Support Your Observation
  • 13. The Solution Define the Solution Explain How the Solution will be Provided The Features & Benefits Commercialization Opportunity
  • 14. THE TECHNOLOGY SLIDE One Page Explained to a Lay Person Audience Its Role in the Solution Intellectual Property (Patent, Trademark, Copyright) ‏ Supporting Diagrams or Charts Don't Confuse With Venture
  • 15. PROGRESS/MILESTONE SLIDE Key Factors that Impact Venture Growth What Have You Accomplished, Where Are You Going Revenue Year to Year Projections (5 years) ‏ Expansion of Management Team Key Hires such as Sales Team Addition of Number of Customers Grid,Time line or Chart Works Well Keep It Real!! Ability to Communicate Your Understanding of the Factors that Impact Your Business
  • 16. MARKET SIZE Quantify the Size What is Addressable Market? Identify the Initial Target Niche Explain Expansion Opportunities Offer Visuals Cite Research & Evidence
  • 17. CUSTOMERS Explain Your Understanding of Your Customer Description of End User Pain Current Profile Market Segments Factors that Influence the Customer Strategies Associated with Penetrating Market Segments Changing Profile of Your Customer with Expansion
  • 18. Sales Strategy Direct v. Channel Direct: Expansion of Sales Staff Sales Cycle Target Purchaser Channel: Partners Scale & Size Division of Territories Strategic Partners (if any) ‏
  • 19. Management Team Communicating that IT is not ALL ABOUT YOU Understanding Scalability & Infrastructure Building Current Titles & Bios Relevancy to Current Venture Entrepreneurial Experience Future Expansion Needs Timing
  • 20. Outside Supporting Resources Advisory Board Area of Expertise Name & Title Relevance to Venture Law Firm Reputable Background in Venture Funding Accounting Firm Rarely Sole Practitioner Background in Industry
  • 21. Competition Direct Same Targeted Customers Solving Same Pain similar Product Features & Benefits Indirect Pain Solved by Product/Service that is Tangential Future Where will Competitors Emerge from
  • 22. Financial Projections 1 to 5 years 1 st Year: Monthly 2 nd & 3d Years: Quarterly 4 th & 5 th Years: Annual Key Assumptions: Ratios, Margins, Factors Impacting Growth Key Milestones: Break even Sales Acceleration Change in Cost Structure
  • 23. Funding Summary Personal Funds Family & Friends Current Round Future Rounds Conditions Foreseen Use of Funds Prior Funds Used Most Optimally Key Future Use with Greatest Impact Milestones that will be Passed
  • 24. Exit Strategy Acquisition IPO Time Frame
  • 25. SUMMARY For Investor, Why is Now the Right Time, Right Venture? Dramatic Impact on Venture of New Funding Evidence to Support Level of Confidence based on Prior Results Fulfilling Investor's Needs: Passion, Profile, ROI, Return on Principle
  • 26. CONTACT INFORMATION Logo Name Email Address Phone Number Address Web Site
  • 27. For More information about this tutorial, contact: Jeanne Gray [email_address] This Program has been funded in whole by funds from the US Department of Labor Employment and Training Administration.