How to Pitch Your Startup to Investors

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10 steps for crafting a story to pitch your entrepreneurial startup idea to investors using Square, AirBnB, and DropBox as examples.

How to Pitch Your Startup to Investors

  1. 1. How To PITCH Your Startup To Investors This presentation represents Jeremey Donovan’s personal opinions and not those of Gartner Inc.. All company and product names mentioned herein are trademarks and registered trademarks of their respective owners.
  2. 2. 1 Start with your core value proposition
  3. 3. Forget hotels (2009) The friendly neighborhood way to pay (2011) Sync your files online and across computers (2009) Travel like a human Sell More With Square Your stuff, anywhere Positive Customer-centric Short Action-oriented Catchy Benefits (not features)
  4. 4. 2 Share the problem you are solving
  5. 5. Hotels are expensive and impersonal Credit card merchant services are complex to setup and manage Every device has its own data Expensive Complex Risky Boring Time-Consuming Inconvenient
  6. 6. 3 Link the problem to disruptive macro trends
  7. 7. Globally connected youth culture ‘Solo-preneur’ revolution Explosion of mobile devices + limitless storage & bandwidth 3D Printing Energy
  8. 8. 4 Show your solution
  9. 9. A web-based platform where : [Travelers can save and immerse] A smartphone & sensor based platform for processing credit card transactions [Hosts can earn] Not a feature, not a product, but a… PLATFORM A cloud-based platform to protect, access, and share your files anywhere, anytime
  10. 10. < < < Insert Demo Here >>>
  11. 11. 5 Link your business model to a massive opportunity
  12. 12. 10.9 billion trips/yr x 0.10% share x $20 commission = > $200M/yr $6T CC transactions x 0.15% share x 2.5% commission = > $200M/yr 1.2 billion PCs x 0.20% share x $100 / yr = >$200M/yr [Massive Market] x [Tiny Share] x [Reasonable Price]
  13. 13. 6 Explain how you acquire customers at low cost
  14. 14. Events Internet advertising Partnerships Mobile Retailers Referral incentives File Sharing CraigsList Build ‘virality’ into your product Remember that product quality is marketing
  15. 15. 7 Show traction with real customers
  16. 16. >10M nights booked > $10B processed with > 40K retailers >200M users Though less impactful than revenue from customers, this is also the place to show traction with investors, partners, advisors, etc.
  17. 17. 8 Handle objections
  18. 18. What about personal safety? What about government regulations? How do you handle credit fraud? How are you different than a million other competitors? The best offense is a good defense (but don’t break into jail)
  19. 19. 9 Explain why you are the right team
  20. 20. Passionate, welleducated millennials initially funded by Y Combinator Jack Dorsey, cofounder of Twitter Passionate, welleducated millennials initially funded by Y Combinator Pedigree matters, but there is no perfect profile
  21. 21. And one last thing…
  22. 22. 10 Close with your ask
  23. 23. How much money? + What you are going to spend it on? + How you are going to repay it?
  24. 24. Connect with me Blog: www.speakingsherpa.com Twitter: @SpeakingSherpa LinkedIn: www.linkedin.com/jeremeydonovan

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