VC Pitches That Work


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This is a presentation I've used speaking to entrepreneurship classes. It's an amalgamation of my own thoughts and those of others from the web. You'll see it's a little dated, and not necessarily oriented to the current super angel phenomenon but hopefully it will be useful to entrepreneurs looking for guidance on putting a cogent pitch together.

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VC Pitches That Work

  1. 1. VC PITCHES THAT WORK<br />Todd Klein<br />Legend Ventures, LLC<br />9/15/10<br />
  2. 2. STRUCTURE OF THIS PRESENTATION<br />Most important slides, what goes on them<br />Examples of “Right” answers<br />E.g., for this presentation: Fictitious Mobile Applications startup<br />What is the VC thinking?<br />2<br />
  3. 3. MISSION OF THE BUSINESS<br />What’s on the slide: Succinct one-liner that encapsulates the business idea<br />Example: We are the Amazon of Mobile Applications<br />What the VC is thinking: “Why do I care?”<br />3<br />
  4. 4. MARKET PROFILE<br />How big is the market and how fast is it growing?<br />150 M smart phones in US, 300 M in ROW<br />Average $2.50/month spent on mobile apps<br />“Is there a billion dollar company in here?”<br />4<br />
  5. 5. PROBLEM/OPPORTUNITY<br />How big is the customer’s problem<br />Smart phones are becoming indispensible, need trusted source of applications<br />“Is the pain so bad that solving it will generate high gross margins and fast adoption?”<br />5<br />
  6. 6. YOUR SOLUTION<br />What is unique about your solution<br />Comprehensive source, optimized price, for every smart phone<br />“Who’s tried this before (if anyone) and why hasn’t it been addressed successfully until you showed up?”<br />6<br />
  7. 7. TEAM SLIDE<br />Names & Experience (include gaps you’re trying to fill)<br />Built a service that achieved $15 million in revenues in two years before being sold to Microsoft<br />“Would I stake my entire professional reputation on these people?<br />7<br />
  8. 8. TECHNOLOGY<br />What is the Secret Sauce? Is it defensible? Headstart over others?<br />Patented search and fulfillment engine<br />“Is it ready, will it take 1 year or 5 more years to be ready for prime time?”<br />8<br />
  9. 9. CUSTOMERS<br />Who is paying for or testing the product?<br />We have 100,000 users<br />“If it weren’t free, would people pay for it? And if it is free, what freemium opportunities are there?”<br />9<br />
  10. 10. VALUE PER CUSTOMER<br />Key slide<br />Gross profit per customer<br />Costs to acquire customers<br />Fully loaded costs to service customers<br /> Customer churn<br />Minimum customers to breakeven<br />“What is the lifetime value of a customer?”<br />10<br />
  11. 11. GO TO MARKET STRATEGY<br />Getting in front of customers<br />We use SEO to reach customers<br />“What are the key channels that influence customer awareness and buying behavior?”<br />11<br />
  12. 12. KEY MILESTONES (S/U OF FUNDS)<br />Development milestones, when will the product be ready<br />This round will get us to 3 million users<br />“How far will this financing take me? Will there be a chance for an early exit or a step up on the next round?”<br />12<br />
  13. 13. FINANCIALS<br />I/S, B/S, C/F statements<br />Numbers are still attractive if we’re off by 2X or more<br />“Are these credible, has the team thought through its model?”<br />13<br />
  14. 14. COMPETITION<br />2 X 2 matrix structure: most important competitive variables on the axes (Blue Ocean Strategy)<br />Our unfair advantage is…<br />“Does this team know really know its market?”<br />14<br />
  15. 15. FINANCING TO DATE<br />Capital invested so far, amount of this raise<br />We’ve been capital efficient up until now and will remain that way<br />“Is this a club I want to join? Are these potential partners I respect?”<br />15<br />
  16. 16. WHY XYZ VENTURE FIRM<br />Why do you want to work with this investor?<br />We need expertise in X area and help with Y relationships<br />“They like me, they really like me!”<br />16<br />