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How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
How To Pitch a VC (or Angel)
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How To Pitch a VC (or Angel)

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slides from my talk at Startup Weekend Sao Paulo #SWSP (Nov 2011)

slides from my talk at Startup Weekend Sao Paulo #SWSP (Nov 2011)

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  • 1. How to Pitch a VC Startup Weekend Sao Paulo (# SWSP ) Dave McClure 500 Startups , Master of 500 Hats ESPM, Sao Paulo, Nov 2011 [email_address] / @DaveMcClure
  • 2. WARNING : this deck is guaranteed to offend , provide tragically incorrect advice, and perhaps get you arrested . so fucking deal with it.
  • 3. Essential Elements of your Pitch <ul><li>Elevator Ride (30-sec quick pitch) </li></ul><ul><li>The Money Shot (demo) </li></ul><ul><li>Size Matters (market) </li></ul><ul><li>Nice Number$ (customers + revenue) </li></ul><ul><li>SuperHeroes & RockStars (your team) </li></ul>* note: the above are teaser images… they don ’t really mean anything; they’re just here to capture your attention.
  • 4. Pitch MY PROBLEM (not YOUR SOLUTION ) Post: “ Your Solution is Not My Problem ”
  • 5. [Pardon The Blatant Commercial ]
  • 6. Dave McClure <ul><ul><li>2001-2009: </li></ul></ul><ul><ul><li>Startup Investor: 500 Hats LLC, Founders Fund </li></ul></ul><ul><ul><li>Tech Marketing : PayPal, Simply Hired, Mint </li></ul></ul><ul><ul><li>Advisor, Angel Investor : 200+ Startups </li></ul></ul><ul><ul><li>Conf. Organizer : Web 2.0, O ’Reilly, Startonomics </li></ul></ul><ul><ul><li>Stanford Visiting Lecturer : Facebook, Startup Metrics </li></ul></ul><ul><ul><li>80 ’s & 90’s: </li></ul></ul><ul><ul><li>Entrepreneur : Founder/CEO Aslan Computing (acq.) </li></ul></ul><ul><ul><li>Developer : Windows Apps / SQL DB Admin </li></ul></ul><ul><ul><li>User Groups : E-Commerce, Internet, Client-Server </li></ul></ul><ul><ul><li>Engineer : Johns Hopkins ‘88, BS Eng / Applied Math </li></ul></ul>GEEK, CODER, ENTREPRENEUR Blogger, Startup Advisor Internet Marketing, Angel/VC Investor
  • 7. 500 Startups Seed Fund Mountain View, CA – Founded 2010 <ul><li>Seed Fund & Startup Accelerator </li></ul><ul><ul><li>10,000 sq ft / Silicon Valley HQ </li></ul></ul><ul><li>Design , Distribution , Data </li></ul><ul><li>230+ Portfolio Companies </li></ul><ul><ul><li>Twilio </li></ul></ul><ul><ul><li>Wildfire </li></ul></ul><ul><ul><li>SendGrid </li></ul></ul><ul><ul><li>Viva Real </li></ul></ul><ul><ul><li>Co lingo </li></ul></ul><ul><ul><li>SlideShare </li></ul></ul><ul><ul><li>KISSmetrics </li></ul></ul>
  • 8. [How to Pitch a VC (or Angel)]
  • 9. 10 Slides to an Awesome Pitch <ul><li>1. Elevator Pitch </li></ul><ul><li>2. The Problem </li></ul><ul><li>3. Your Solution </li></ul><ul><li>4. Market Size </li></ul><ul><li>5. Business Model ($) </li></ul><ul><li>6. Proprietary Tech </li></ul><ul><li>7. Competition </li></ul><ul><li>8. Marketing Plan </li></ul><ul><li>9. Team / Hires </li></ul><ul><li>10. Money / Milestones </li></ul>Demo Goes Here Teaser Image Goes Here
  • 10. 10 Slides to an Awesome Pitch <ul><li>1. Elevator Pitch </li></ul><ul><li>2. The Problem </li></ul><ul><li>3. Your Solution </li></ul><ul><li>4. Market Size </li></ul><ul><li>5. Business Model ($) </li></ul><ul><li>6. Proprietary Tech </li></ul><ul><li>7. Competition </li></ul><ul><li>8. Marketing Plan </li></ul><ul><li>9. Team / Hires </li></ul><ul><li>10. Money / Milestones </li></ul>Demo Goes Here Teaser Image Goes Here Cu$tomer Testimonial$ “ This Shit Rocks .” The Money Shot: Demo Screen Shots Video Business Metrics (NOT Revenue Projections) AARRR!
  • 11. 1. The Elevator Pitch ( only 30 sec! ) <ul><li>Short, Simple, Memorable: </li></ul><ul><ul><li>“ What , How , Why .” </li></ul></ul><ul><li>3 key words or phrases </li></ul><ul><ul><li>“ Mint.com is the free, easy way to manage your money online.” </li></ul></ul><ul><li>No expert jargon… just KISS . </li></ul><ul><li>Remember to Have Fun  </li></ul><ul><li>(…. when you pitch ------> ) </li></ul>
  • 12. 2. The Problem <ul><li>What is The Problem ? … Make it Obvious . </li></ul><ul><ul><li>“ Ouch . Yeah, I have that too…” </li></ul></ul><ul><li>Who has it? </li></ul><ul><li>“ Painkiller not Vitamin ” </li></ul><ul><li>also see blog post: </li></ul><ul><li>“ Your SOLUTION is not my PROBLEM ” </li></ul>
  • 13. Pitch MY PROBLEM (not YOUR SOLUTION ) Post: “ Your Solution is Not My Problem ”
  • 14. 3. Your Solution <ul><li>Great Products & Companies do 1+ of 3 things: </li></ul><ul><ul><li>Get You LAID (= sex) </li></ul></ul><ul><ul><li>Get You PAID (= money) </li></ul></ul><ul><ul><li>Get You MADE (= power) </li></ul></ul>
  • 15. 3. Your Solution <ul><li>Great Companies do 1+ of 3 things: </li></ul><ul><ul><li>Get you LAID (= sex) </li></ul></ul><ul><ul><li>Get you PAID (= money) </li></ul></ul><ul><ul><li>Get you MADE (= power) </li></ul></ul><ul><li>Describe why your Solution: </li></ul><ul><ul><li>Makes your customers Happy </li></ul></ul><ul><ul><li>Does it better, different than anyone else </li></ul></ul><ul><ul><ul><li>“ NICHE to WIN” </li></ul></ul></ul><ul><ul><ul><li>(Customer Case Study can also go here) </li></ul></ul></ul>
  • 16. [ The Money Shot ] <ul><li>http://Jing.com </li></ul><ul><li>http://ScreenCast.com </li></ul><ul><li>http://Flickr.com </li></ul><ul><li>http://YouTube.com </li></ul><ul><li>http://Scribd.com </li></ul><ul><li>http://SlideShare.com </li></ul>Demo Screen Shots Video <ul><li>PRACTICE! PRACTICE! PRACTICE! </li></ul><ul><li>demo will FAIL -- have a backup (screenshots, local video, interpretive dance) </li></ul><ul><li>expect to be interrupted </li></ul>
  • 17. [ The Money Shot ] <ul><li>http://Jing.com </li></ul><ul><li>http://ScreenCast.com </li></ul><ul><li>http://Flickr.com </li></ul><ul><li>http://YouTube.com </li></ul><ul><li>http://Scribd.com </li></ul><ul><li>http://SlideShare.com </li></ul>Demo Screen Shots Video <ul><li>PRACTICE! PRACTICE! PRACTICE! </li></ul><ul><li>demo will FAIL -- have a backup (screenshots, local video, interpretive dance) </li></ul><ul><li>expect to be interrupted </li></ul><ul><li>and remember : </li></ul><ul><li>The Script is NOT your Slides – The Script is the FACE of your Audience </li></ul>
  • 18. 4. Market Size <ul><li>Bigger is Better </li></ul><ul><li>Top Down = someone else reported it </li></ul><ul><ul><li>Forrester, Gartner, Your Uncle </li></ul></ul>
  • 19. 4. Market Size <ul><li>Bigger is Better </li></ul><ul><li>Top Down = someone else reported it </li></ul><ul><ul><li>Forrester, Gartner, Your Uncle </li></ul></ul><ul><li>Bottom Up = calculate users/usage/rev$ </li></ul><ul><ul><li>Avg Txn = $X </li></ul></ul><ul><ul><li>Y customers in our market </li></ul></ul><ul><ul><li>Avg customer buys Z times per year </li></ul></ul><ul><ul><li>Market Size = $X * Y * Z annually = a big friggin ’ # </li></ul></ul><ul><ul><li>Market growing @ 100+% per year </li></ul></ul>
  • 20. 5. Business Model (How Do You Make Money?) <ul><li>Describe Top 1-3 Sources of Revenue </li></ul><ul><ul><li>Prioritize by Size or Potential </li></ul></ul><ul><li>Common Revenue Models: </li></ul><ul><ul><li>Direct : ecommerce, subscription, digital goods </li></ul></ul><ul><ul><li>Indirect : advertising, lead gen, affiliate </li></ul></ul>
  • 21. 6. Proprietary Technology / Expertise <ul><li>VCs *really* like unfair advantages: </li></ul><ul><ul><li>BIG market lead </li></ul></ul><ul><ul><li>experienced team </li></ul></ul><ul><ul><li>“ superior” technology </li></ul></ul>
  • 22. 7. Competition (why you ’re better *or* different ) <ul><li>List *all* competitors </li></ul><ul><li>Show how you ’re better … </li></ul><ul><li>… or at least different </li></ul><ul><ul><li>if not better or different then </li></ul></ul><ul><ul><li>-> “NICHE TO WIN” </li></ul></ul>
  • 23. Better or Different . Funny! Shocking !!! Accepted Not Funny.
  • 24. 8. Marketing Plan <ul><li>PR </li></ul><ul><li>Contest </li></ul><ul><li>Biz Dev </li></ul><ul><li>Direct Marketing </li></ul><ul><li>Radio / TV / Print </li></ul><ul><li>Telemarketing </li></ul><ul><li>Email </li></ul><ul><li>SEO / SEM </li></ul><ul><li>Blogs / Bloggers </li></ul><ul><li>Viral / Referral </li></ul><ul><li>Affiliate / CPA </li></ul><ul><li>Widgets / Apps </li></ul><ul><li>LOLCats </li></ul>… how do you get customers & distribution ? lots of channels & decisions… choose a few :
  • 25. 8. Marketing Plan <ul><li>PR </li></ul><ul><li>Contests </li></ul><ul><li>Biz Dev </li></ul><ul><li>Direct Marketing </li></ul><ul><li>Radio / TV / Print </li></ul><ul><li>Telemarketing </li></ul><ul><li>Email </li></ul><ul><li>SEO / SEM </li></ul><ul><li>Blogs / Bloggers </li></ul><ul><li>Viral / Referral </li></ul><ul><li>Affiliate / CPA </li></ul><ul><li>Widgets / Apps </li></ul>… how do you get customers & distribution ? lots of channels & decisions… choose a few : <ul><li>3 Things That Matter / To Measure : </li></ul><ul><ul><li>Volume </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Conversion </li></ul></ul>
  • 26. 9. Team <ul><li>People that get VCs Hot: </li></ul><ul><li>Geeks with deep tech experience </li></ul><ul><li>Entrepreneurs who have sold companies </li></ul><ul><li>Sales/Marketing who bring in customer$ </li></ul>
  • 27. 10. Money, Milestones <ul><li>How Much Money ? </li></ul><ul><ul><li>3 Budgets: Small , Medium, Large </li></ul></ul><ul><li>What will you do with Capital ? </li></ul><ul><ul><li>New Hires (Build Product ) </li></ul></ul><ul><ul><li>Mktg & Sales (Get Customers / $$$ ) </li></ul></ul><ul><ul><li>Ops & Infrastructure ( Scale Up) </li></ul></ul>
  • 28. Financing <ul><li>Raised $50-100K Seed round Jan 08 @ $1M valuation </li></ul><ul><ul><li>angel investors: any notables? invested in other co ’s? other winners? </li></ul></ul><ul><ul><li>built initial prototype; functional use with 100-1,000 customers </li></ul></ul><ul><li>Seeking $250K-$1M Series A round @ $2.5M valuation </li></ul><ul><ul><li>already closed $300K </li></ul></ul><ul><ul><li>meetings with 5 other VCs in next 2 weeks </li></ul></ul><ul><ul><li>targeted closing in 4 weeks </li></ul></ul><ul><li>Use of Proceeds / Product Roadmap / Goals </li></ul><ul><ul><li>$100-500K: hire 2-3 engineers, 1 marketing / sales, .5 PT customer support </li></ul></ul><ul><ul><li>$100-500K: marketing campaigns & customer acquisition </li></ul></ul><ul><ul><li>get to 25K customers, $1M revenue by end of year </li></ul></ul><ul><ul><li>estimated break-even in Q4 / 09 @ $100K / month </li></ul></ul>
  • 29. Additional Resources <ul><li>Dave McClure : </li></ul><ul><ul><li>Startup Metrics for Pirates ( AARRR !) </li></ul></ul><ul><ul><li>ZapMeals Sample Pitch Presentation </li></ul></ul><ul><ul><li>Master of 500 Hats Blog: “ Greatest Hats ” (top blog posts) </li></ul></ul><ul><li>Steve Blank : 4 Steps to Epiphany, Customer Development Methodology </li></ul><ul><li>Eric Ries : StartupLessonsLearned </li></ul><ul><li>Sean Ellis : Startup-Marketing.com </li></ul><ul><li>Andrew Chen : AndrewChenBlog.com </li></ul><ul><li>Brad Feld, Jason Mendelson : AskTheVC.com </li></ul><ul><li>Aydin Senkut : Felicis Ventures blog </li></ul><ul><li>Mark Suster : Both Sides of the Table </li></ul><ul><li>VentureHacks.com </li></ul><ul><li>StartupCompanyLawyer.com </li></ul>
  • 30. [ Don ’t Pitch Me, Bro. ] srsly: don’t. fucking. pitch. me. (and don’ t email me either, cuz i won’t read it)
  • 31. Don ’t Pitch Me, Bro. <ul><li>1 st : Read my stuff (blogs, decks, tweets). </li></ul><ul><li>2 nd : Get a referral from someone I trust . </li></ul><ul><ul><li>500 Mentors or 500 Founders </li></ul></ul><ul><ul><li>Other Subject Matter Experts </li></ul></ul><ul><ul><li>*Not* Your Mom. </li></ul></ul><ul><li>3 rd : Be Concise. Don ’t Suck . </li></ul>Email B E D Y 

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