8 Mistakes when Pitching Investors

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My talk during the "Failure... stepping up to succeed" workshop @ Tech Startup day

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8 Mistakes when Pitching Investors

  1. 1. 8  MISTAKES    WHEN  PITCHING        INVESTORS    Jan  Coppens   19/04/12  
  2. 2. Prepara/on   1   Status   8   2   Problem  defini/on   You   7   3   Product   differen/a/on  Go-­‐to-­‐market   6   4   Business  model   5   Compe//on  
  3. 3. 1   PreparaKon   ss?    about  our  busine What   do  you  know Raising  Capital  
  4. 4. Limited   Partner   €   Venture  Capital   firm   Limited   €   General   Partner   Partners   Management   fee   €   Limited   Partner   €   Fund  Fund  raising  
  5. 5. Venture  Capital   €   Startup   firm   General   €   Startup   Partners   €   •  Investment  strategy   Fund   €   Startup   •  Deal-­‐flow  management   •  PorPolio  management  Inves.ng  
  6. 6. Limited   Partner   €   Venture  Capital   Startup   €   firm   Limited   General   Startup   Partner   Partners   €   € Limited   Startup   Partner   Carried   Interest    Exit  
  7. 7. 2   Problem  definiKon   I  don’t  fe el  the  pa in   •  Tell  the  story  of  your  customer   •  Show  current  solu/ons  do  not  cure   •  Translate  opportunity  in  problem   •  Proof  with  data  
  8. 8. A  word  on  communica/on   An  important  client  or  market  need  “ addressed  by  a  unique  approach  with  compelling  benefits  when  compared  against   “ the  compe//on  or  alterna/ves  
  9. 9. 3   Product  differenKaKon   Where  have  I  seen  this   before?   Low  barriers  to  entry  for   Web  startups  result  in   many  “me  too”  products     Ancient  technology     Lack  unique  knowhow?  
  10. 10. 4  “ Business  model   single  most  common  quesKon   and  how  exactly  are  you   “ going  to  make  money?   User  pays   Someone  else  pays   34%   Dont  know   Business   model   52%   14%   n  =  56  
  11. 11. Can  you  prove  what  you  claim?     Example  of  real-­‐life  startup  financials  (Belgium)  45   Revenu  40   EBITDA  35  30   Really?  25  20  15  10   5   0   2012   2013   2014   2015   2016  
  12. 12. 5   CompeKKon   You  don’t  understand   your  market   Typical  compe//on  analysis   Other   YOU    Strong   startup   Google   Something  else   Apple   Missing  link  to   customer  priori/es     Someone   Radom   you  found   companies   on  Google   Weak in  same   space   Weak    Strong   Something  
  13. 13. 6   Go-­‐to-­‐market   How  will  you  reach  your   customers?   •  What  is  your  compe//ve   B2C   advantage  to  reach  your   31%   customers?   Customer   type   •  How  are  you  going  to   B2B   69%   make  this  repeatable  and   scalable?   n  =  54  
  14. 14. 7   You  
  15. 15. You  need  a  right  team  size,  …     “ Solo  founders  take   “ 3.6x  longer  to  reach   scale  stage   Startup  Genome  report  
  16. 16. …and  the  right  set  of  skills   •  Technical  vs.  business   •  Thinker  vs.  doer   •  INTP  vs.  ESFJ   •  Etc.  Commandos  1998  
  17. 17. 8   Status   Does  it  exist   outside  of   your  head?  
  18. 18. Thanks Mail:   jan.coppens@ibbt.be  Twider:   @jgcoppens  Linkedin:   linkedin.com/in/jancoppens  

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