Steve Morris: How to create an investor pitch

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Steve Morris: How to create an investor pitch

  1. 1. How to Create an Investor Pitch Steve Morris [email_address] Executive Director, OTBC Prepared for Ignite Portland, 2007
  2. 2. Before you Start <ul><li>You need more than just an idea </li></ul><ul><ul><li>A technology proof? </li></ul></ul><ul><ul><li>A prototype people have used? </li></ul></ul><ul><li>Customer references really help </li></ul>
  3. 3. Before you Start <ul><li>Tell the big story – but know the detail... </li></ul><ul><li>... write a biz plan before pitching investors </li></ul><ul><li>OEN.ORG: </li></ul><ul><ul><li>Business Plan Development Seminar </li></ul></ul><ul><ul><li>Business Plan Review </li></ul></ul>
  4. 4. Things to Remember <ul><li>You are selling ; the investor is buying </li></ul><ul><li>“ Buy” decisions are emotional </li></ul><ul><li>Money is not Criteria #1 ! </li></ul><ul><li>You must tell a good story </li></ul>
  5. 5. Things to Remember <ul><li>The product description is one slide </li></ul><ul><li>Make it a short, compelling presentation </li></ul><ul><ul><li>10 slide example coming up </li></ul></ul><ul><ul><li>Just one of many approaches! </li></ul></ul><ul><li>BIG font size !!! (This is 32 point...)‏ </li></ul>
  6. 6. Things to Remember <ul><li>No jargon </li></ul><ul><li>No acronyms </li></ul><ul><li>Be clear and specific </li></ul><ul><li>Mention key partners/customers </li></ul>
  7. 7. <your company name> <your name> <your tag line> <phone number; web URL; email> Slide 1
  8. 8. Problem / Need <ul><li>What problem are you solving (or what new opportunity are you addressing? </li></ul><ul><li>Who has the problem? (i.e., who is your customer?)‏ </li></ul><ul><li>Why is finding a solution compelling ? </li></ul>Slide 2
  9. 9. Your Solution <ul><li>What product or service will you deliver? </li></ul><ul><li>What value will it deliver? </li></ul><ul><li>Is it a “must have” or a “nice to have”? </li></ul>Slide 3
  10. 10. Business Model <ul><li>How do you make money? </li></ul><ul><li>Who pays and how? </li></ul><ul><li>Price? (And how did you determine it.)‏ </li></ul><ul><li>Costs? (Can you really make money?)‏ </li></ul>Slide 4
  11. 11. Your Advantage <ul><li>There are many smart people in the world. Why will your team win? </li></ul><ul><ul><li>Technology? </li></ul></ul><ul><ul><li>Key partners? </li></ul></ul><ul><ul><li>Unique team skills? </li></ul></ul>Slide 4
  12. 12. Competition <ul><li>There is always competition. </li></ul><ul><li>What do customers use today? </li></ul><ul><li>What new competition do you expect? </li></ul><ul><li>Customer references really help </li></ul>Slide 5
  13. 13. The Market <ul><li>How big is the market? </li></ul><ul><li>What segment will you target first? Why? </li></ul><ul><li>Describe your target customer </li></ul><ul><li>Have you talked to customers? </li></ul><ul><li>What are the follow-on opportunities? </li></ul>Slide 6
  14. 14. Market Entry Plan <ul><li>How will you generate awareness? </li></ul><ul><li>How do customers in your market typically buy? </li></ul><ul><li>How will you sell? </li></ul><ul><li>How long is the sales cycle? </li></ul>Slide 7
  15. 15. Forecast <ul><li>What is your 5 year revenue projection? </li></ul><ul><li>What are your key assumptions? </li></ul><ul><li>Forecasts are always wrong... </li></ul><ul><li>... but they need to make sense </li></ul>Slide 8
  16. 16. The Team <ul><li>Background and qualifications </li></ul><ul><li>Strong Board members or advisors? </li></ul><ul><li>If the team is world class, this is slide #2! </li></ul>Slide 9
  17. 17. Milestones & Funding <ul><li>Key accomplishments to date: </li></ul><ul><li>How much money do you need? </li></ul><ul><li>What will you accomplish with it? </li></ul>Slide 10
  18. 18. Final Thoughts <ul><li>Practice, Practice, Practice </li></ul><ul><li>Tell the big story – but know the detail </li></ul><ul><ul><li>i.e., you need a business plan! </li></ul></ul><ul><li>Get a biz plan review (oen.org)‏ </li></ul>
  19. 19. Other Resources <ul><li>OregonStartups.com </li></ul><ul><li>OEN.ORG </li></ul><ul><li>SAO.ORG </li></ul><ul><li>OTBC.ORG </li></ul>
  20. 20. How to Create an Investor Pitch Steve Morris [email_address] Executive Director, OTBC Prepared for Ignite Portland, 2007

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