The key points and highlights from Sean Owen’s presentation “How Your Pitch Is Received” Great entrepreneurs make the world go round and investors need great entrepreneurs, that’s why investors “would kill” to hear great pitches from entrepreneurs. An investor would probably receive hundreds of business plans daily but only invests in a handful; there is a need to stand out! An Investment Memo is helpful to catch your reader’s attention given the little time they have. It’s an executive summary and not a complete business plan. Time is of essence; minor things are major in 15 minutes so put a great deal of attention to details. Easy, quick read but comprehensive is appreciated by the busy. Highlight strengths and identify weaknesses and how you intend to turn these into strengths. Investors mostly believe 80% of your pitch but doubts on the 20%; the goal is to beat the 20%! When scheduled for a meeting, send details (business plan including financials) days in advance. Target a 60-minute presentation starting with a good warm-up (summary; 15 minutes). Your goal is to make the investor asking more questions before leaving the meeting. Listen, modulate, and ask questions! Sean’s presentation was part of TechStartHub Startup Masterclass: How to make sure you’re investment and exit ready held last November 8 at University College London – Roberts Building. The next masterclass, Expert Advice on Website Content Strategy, Analytics, and Community Building, will be held on November 28 at the Innovation Warehouse. By: Cris Kerwin Pabuaya

1. HOW YOUR PITCH IS
RECEIVED
Sean Owen
(Pentech Ventures)
8 November 2011

2. (Your Mileage
May Vary)

3. You‟re (Also) the Star
• Great entrepreneurs
make the world go
„round
• Investors need great
entrepreneurs
• Investors would kill to
hear great pitches
• What does a great
pitch sound like?

4. A Business Plan A Day
• Typical fund sees
hundreds per year
• … and invests in a
handful
• Most investments
aren’t from inbound
plans
• Stand Out Quickly

5. Exceptionalism
• Early-stage model
must pursue
exceptional returns
• Why is this plan
exceptional?

6. Who Reads Your Message?
• Small funds: partner
• Medium-large funds:
associate
• Sourcing just one job
• Do the math: less
than an hour total to
justify more time

7. What‟s in an Investment Memo?
• Non-disclosure agreement?
• Not to read the IM
• Investors don‟t want or need secrets yet
• Looks naïve, problematic for investor
• Executive Summary / IM
• How much do you expect
someone to digest in 15 minutes?
• <= 7 pages; advisors send 1-2
• Not a complete business plan
• An appetizer, not a meal

8. What‟s in an Investment Memo? (cont.)
• Presentation
• Optional; the “movie” to the IM‟s “book”
• Works better in person; send if really cool
• 10-20 slides
• Financials
• Optional; high-level financials in the IM
• 12 months, then 2 more years P&L

9. First Impressions Count
• Minor things are major,
in 15 minutes
• Guess you come
across the same to
customers
• Attention to detail =
passion, goodness
• Easy, quick read
appreciated by the
busy

10. Strengths and Weaknesses
• Product • Competition
• What is it? • What else solves the
• Market problem?
• How much can • Team
realistically be sold per • What‟s the team‟s unfair
year? advantage?
• Revenue • Deal
• How does it make • How much?
money? • Where does it reach to?
• Customers?

11. A Reason To Invest?
• Accept IM‟s premises:
any good reasons to
invest?
• Disqualify: wrong
stage, sector, geograp
hy
• So, fund can invest
• Decision: Meeting?

12. Reasons to Not Invest?
• Investor mostly
believes 80%
• Investor doubts about
20%: reasons not to
invest
• Goal: Beat the 20%

13. The Meeting
• Receive details days in
advance
• Business plan
• Financials
• Target 60 minutes
• Good warm-up: 15
minutes summarizing
business

14. The Meeting (cont.)
• Frequent: Investor
leaves still holding
doubts
• Infrequent: Investor
leaves wanting more
talking
• Listen, modulate, ask
questions

15. From There?
• Fund Monday meeting
• Find partner champion;
help her help you
• 1-2 more meetings
• Now about relationship
• Diligence: you, and the
fund
• CLOSE!

16. srowen@pentechvc.com