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