How to Pitch a VC   aka “Startup Viagra”           Dave McClure    Founders Fund, Master of 500 Hats            Paris, Jun...
Essential Elements of your Pitch•   Elevator Ride (30-sec quick pitch)•   The Money Shot (demo)•   Size Matters (market)• ...
[Pardon The Blatant Commercial]
Blogg Dave McClure                        er, St               Advis           artup                       or             ...
Professional Investments       (43 deals, 2008-2010, ~$3M)      fbFund REV                       FF Angel   22 incubator d...
Personal Investments  (26 deals, 2004-2010, ~$400K)                         oneforty        Votizen                       ...
10 Slides to an Awesome                Pitch                     Teaser Image                      Goes Here1. Elevator Pi...
10 Slides to an Awesome                Pitch                      Teaser Image                       Goes Here1. Elevator ...
1. The Elevator Pitch (only 30 sec!)• Short, Simple, Memorable:   – “What, How, Why.”• 3 key words or phrases   – “Mint.co...
2. The Problem• What is The Problem? … Make it Obvious.    – “Ouch. Yeah, I have that too…”• Who has it?• “Painkiller not ...
3. Your Solution• Great Products & Companies do 1+ of 3 things:  – Get You LAID (= sex)  – Get You PAID (= money)  – Get Y...
3. Your Solution• Great Companies do 1+ of 3 things:   – Get you LAID (= sex)   – Get you PAID (= money)   – Get you MADE ...
[ The Money Shot ]                                                        •   http://Jing.com   Demo                      ...
[ The Money Shot ]                                                        •   http://Jing.com   Demo                      ...
4. Market Size• Bigger is Better•   Top Down = someone else reported it    – Forrester, Gartner, Your Uncle
4. Market Size• Bigger is Better•   Top Down = someone else reported it    – Forrester, Gartner, Your Uncle•   Bottom Up =...
5. Business Model                     (How Do You Make Money?)•   Describe Top 1-3 Sources of Revenue    – Prioritize by S...
6. Proprietary Technology / Expertise• VCs *really* like unfair advantages:   – BIG market lead   – experienced team   – “...
7. Competition                    (why you’re better *or* different)•    List *all* competitors•    Show how you’re better...
Better or Different.                 Funny!Accepted                                  Shocking                             ...
8. Marketing Plan… how do you get customers & distribution?lots of channels & decisions… choose a few:   •   PR           ...
8. Marketing Plan… how do you get customers & distribution?lots of channels & decisions… choose a few:   •   PR           ...
9. TeamPeople that get VCs Hot:• Geeks with deep tech experience• Entrepreneurs who have sold companies• Sales/Marketing w...
10. Money, Milestones•   How Much Money?    – 3 Budgets: Small, Medium, Large•   What will you do with Capital?    – New H...
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How to pich a VC (by Dave McClure)

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How to pich a VC (by Dave McClure)

  1. 1. How to Pitch a VC aka “Startup Viagra” Dave McClure Founders Fund, Master of 500 Hats Paris, June 2010 dave@500hats.com / @DaveMcClure
  2. 2. 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.
  3. 3. [Pardon The Blatant Commercial]
  4. 4. Blogg Dave McClure er, St Advis artup or Intern2001-2009: e t Ma Ange rkeFounders Fund• Startup Investor: 500 Hats LLC, ti ng l/V C I• Tech Marketing: PayPal, Simply Hired,,Mint nvest or• Advisor, Angel Investor: 40+ Startups• Conf. Organizer: Web 2.0, O’Reilly, Startonomics• Stanford Visiting Lecturer: Facebook, Startup Metrics80’s & 90’s: ER, OD Computing (acq.) K, C EApps / SQL ENEUR• Entrepreneur: Founder/CEO Aslan GE• Developer: Windows PR DB Admin EN TRE• User Groups: E-Commerce, Internet, Client-Server• Engineer: Johns Hopkins ‘88, BS Eng / Applied Math
  5. 5. Professional Investments (43 deals, 2008-2010, ~$3M) fbFund REV FF Angel 22 incubator deals 21 seed deals ($850K) ($2M)
  6. 6. Personal Investments (26 deals, 2004-2010, ~$400K) oneforty Votizen MyGeng Postling o LinkDex Graphicly EcoMom SiteJabb er Plancast WePay Recurly Networked Blogs
  7. 7. 10 Slides to an Awesome Pitch Teaser Image Goes Here1. Elevator Pitch 6. Proprietary Tech2. The Problem 7. Competition3. Your Solution Demo 8. Marketing Plan Goes Here4. Market Size 9. Team / Hires5. Business Model ($) 10. Money / Milestones
  8. 8. 10 Slides to an Awesome Pitch Teaser Image Goes Here1. Elevator Pitch 6. Proprietary Tech2. The Problem 7. Competition3. Your Solution Demo 8. Marketing Plan Goes Here4. Market Size 9. Team / Hires5. Business Model ($) 10. Money / Milestones The Money Shot: Business Demo Metrics Cu$tomer Screen Shots (NOT Revenue Testimonial$ Video Projections) “This Shit Rocks.”
  9. 9. 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 ------> )
  10. 10. 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”
  11. 11. 3. Your Solution• Great Products & Companies do 1+ of 3 things: – Get You LAID (= sex) – Get You PAID (= money) – Get You MADE (= power)
  12. 12. 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)
  13. 13. [ The Money Shot ] • http://Jing.com Demo • • http://ScreenCast.com http://Flickr.comScreen Shots • http://YouTube.com • http://Scribd.com Video • http://SlideShare.com• PRACTICE! PRACTICE! PRACTICE!• demo will FAIL -- have a backup (screenshots, local video, interpretive dance)• expect to be interrupted
  14. 14. [ The Money Shot ] • http://Jing.com Demo • • http://ScreenCast.com http://Flickr.comScreen Shots • http://YouTube.com • http://Scribd.com Video • http://SlideShare.com• PRACTICE! PRACTICE! PRACTICE!• demo will FAIL -- have a backup (screenshots, local video, interpretive dance)• expect to be interruptedand remember:• The Script is NOT your Slides – The Script is the FACE of your Audience
  15. 15. 4. Market Size• Bigger is Better• Top Down = someone else reported it – Forrester, Gartner, Your Uncle
  16. 16. 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 = $X * Y * Z annually = a big friggin’ # – Market growing @ 100+% per year
  17. 17. 5. Business Model (How Do You Make Money?)• Describe Top 1-3 Sources of Revenue – Prioritize by Size or Potential• Common Revenue Models: – Direct: ecommerce, subscription, digital goods – Indirect: advertising, lead gen, affiliate
  18. 18. 6. Proprietary Technology / Expertise• VCs *really* like unfair advantages: – BIG market lead – experienced team – “superior” technology
  19. 19. 7. Competition (why you’re better *or* different)• List *all* competitors• Show how you’re better… … or at least different if not better or different then -> “NICHE TO WIN”
  20. 20. Better or Different. Funny!Accepted Shocking !!! Not Funny.
  21. 21. 8. Marketing Plan… how do you get customers & distribution?lots of channels & decisions… choose a few: • PR • Email • Contest • SEO / SEM • Biz Dev • Blogs / Bloggers • Direct Marketing • Viral / Referral • Radio / TV / Print • Affiliate / CPA • Telemarketing • Widgets / Apps • LOLCats
  22. 22. 8. Marketing Plan… how do you get customers & distribution?lots of channels & decisions… choose a few: • PR • Email • Contests • SEO / SEM • Biz Dev • Blogs / Bloggers • Direct Marketing • Viral / Referral • Radio / TV / Print • Affiliate / CPA • Telemarketing • Widgets / Apps 3 Things That Matter / To Measure : 1. Volume 2. Cost 3. Conversion
  23. 23. 9. TeamPeople that get VCs Hot:• Geeks with deep tech experience• Entrepreneurs who have sold companies• Sales/Marketing who bring in customer$
  24. 24. 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)

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