The Pitch with Peter Evans - Entrepreneurship 101
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The Pitch with Peter Evans - Entrepreneurship 101

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This lecture covers all the essentials of building and delivering an effective pitch to help you find financing for your entrepreneurial venture or sell your product to customers. Learn the elements ...

This lecture covers all the essentials of building and delivering an effective pitch to help you find financing for your entrepreneurial venture or sell your product to customers. Learn the elements of a good pitch deck and identify the key elements of good communication that successful start-ups use.


http://www.marsdd.com/events/details.html?uuid=69f1c16a-728b-4245-8733-7cb79f243efb

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The Pitch with Peter Evans - Entrepreneurship 101 Presentation Transcript

  • 1. Essential Elements for Investors! Presented By:! Peter Evans ! Senior MaRS Advisor! @techmarketer! http://ca.linkedin.com/in/peterevansprofile! Pg 1!© 2011 Peter Evans, MaRS Discovery District!
  • 2. Vision | Talent | Money Other People’s Money Fundamentally Changes Everything! Pg 2!© 2011 Peter Evans, MaRS Discovery District!
  • 3. The Entrepreneur/Investor Paradox!Entrepreneurs & Investors Take Different Approaches! Entrepreneurs! Investor! Getting to! Getting to! YES! NO! Pg 3!© 2011 Peter Evans, MaRS Discovery District!
  • 4. Finding the Right Match!Matching the Venture to the Investor! Capacity! Team! Has funds ! Skills & " to invest! Track Record! Compatible! Platform! Successful! Market! Match of ! Significant " Track ! Sizable and " Size/Stage/! Technological" Record! Addressable! Geography! Advantage! The Right! The Right! Investor! Investment! Friendly! Traction! No directly! Strategic! Early " IP &! competitive! Relevant! Customers" Bus. Model ! investments! Portfolio! Entry Barriers! Entrepreneurs want…! Investors want...! Pg 4!© 2011 Peter Evans, MaRS Discovery District!
  • 5. Getting to Yes: 3 Levels of Engagement! Emotional! Rational! Financial! Pg 5!© 2011 Peter Evans, MaRS Discovery District!
  • 6. Components of the Investor Pitch! #1! #3! Real! Unique! Problem! Advantage! #2! #4!Attractive Compelling Market! Investment! Pg 6!© 2011 Peter Evans, MaRS Discovery District!
  • 7. Pacing the Pitch! Selling your story in 12 minutes! #1! #2! #3! #4! Real! Attractive Unique! Compelling Problem! Market! Advantage! Investment!Start! End! (3 min)! (4 min)! (3 min)! (2 min)! © 2011 Peter Evans, MaRS Discovery District! *Note: Elapsed times are guidelines only Pg 7!
  • 8. Answering the “So What?”!Focusing a Problem that Matters! 1! Real! Problem! Pg 8!© 2011 Peter Evans, MaRS Discovery District!
  • 9. Creating Impact! The Company & It’s Solution – Elevator Style! Introduction !  Core Value Proposition: Use a single sentence:! !  Unique Benefit: Focus on one single aspect of what you do (aka…”the big idea”)! Start! Real Problem! Min 3! !  Metaphors: Provide a cognitive connection (the movie pitch) i.e. ”we’re the x of the y business.” ! !  Proxies: “We’re x meets y”….! !  Emotion: Create a visceral response (why are things still done this way?)!Key Message: We’re fixing the insanity of the status quo! Pg 9!© 2011 Peter Evans, MaRS Discovery District!
  • 10. Defining the Problem! Paint a picture of who has this pain! Introduction !  Current State: Show the insanity of how customers address the issue today! !  Historical Evolution: What’s changed in the customer’s mindset ! Start! Real Problem! Min 3! !  Personas: Describe the main players in your market you address! !  Pictures: Every picture tells a story! ProblemKey Message: We’re solving real pain…not “nice to haves”! Pg 10!© 2011 Peter Evans, MaRS Discovery District!
  • 11. Your Solution to the Rescue! Describe WHAT you do and HOW you do it! Introduction !  Product: What is it? " (screen shots, product photos)! Solution !  Functionality: The Who + Do! !  Benefits: High level value! Start! Real Problem! Min 3! !  Category: Where do you play?! !  Stage: What is the readiness of the solution? ! ProblemKey Message: Our solution is novel and easy to understand! Pg 11!© 2011 Peter Evans, MaRS Discovery District!
  • 12. What’s Been Achieved to Date?! Show your ability to succeed: On lots of sweat…little $! Introduction !  Founded (Year)! Solution !  Employees (FT/PT) Offices! !  Product Release(s)! !  Beta Users/Unique Views/ Registrations! Start! Real Problem! Min 3! !  Paying Customers! !  Partners (Technology/Channel)! Problem !  Certifications/Industry Awards! !  Media Coverage! Traction !  Patents!Key Message: Our team is committed and can execute! Pg 12!© 2011 Peter Evans, MaRS Discovery District!
  • 13. Case Study: Quantum Dental! Changing the Way Dentists Detect & Treat Tooth Decay Investor Presentation: October 20th, 2010 MaRS Angel Breakfast Quantum Dental Technologies Lisa Crossley, CEO Pg 13!© 2011 Peter Evans, MaRS Discovery District!
  • 14. Case Study: Quantum Dental! Existing Tooth Decay Diagnostics Gold standard detection methods (visual & x-ray) fundamentally unchanged for decades. Tooth Decay Detected Pg 14!© 2011 Peter Evans, MaRS Discovery District!
  • 15. Case Study: Quantum Dental! The Canary Console by Quantum Dental Technologies Canary interactive software and printed patient reports Pg 15!© 2011 Peter Evans, MaRS Discovery District!
  • 16. Case Study: Quantum Dental! Company Overview What we do !  Quantum Dental Technologies has developed a new platform which uses a low- powered laser to detect tooth decay earlier and more accurately than conventional technologies, allowing dentists to treat & heal the teeth instead of “drill, fill & bill”. Milestones !  Product - Dental Clinic model designed, first commercial units manufactured !  Customers - Over 50 pre-orders secured !  IP - Strong patent portfolio !  Clinical - First Health-Canada approved clinical trial completed, second trial in progress, providing independent validation of safety & efficacy !  Partnerships – Relationships with key global distributors and major multinational strategic partners Financing !  $3.3M raised to date, seeking an additional $2.5M to reach breakeven !  Funds: Sales/marketing to support launch; large-scale mfg; final reg. approvals Pg 16!© 2011 Peter Evans, MaRS Discovery District!
  • 17. Case Study: Quantum Dental! Market Problem Dentists’ Concerns Limitations of Current Patients’ Concerns Detection Methods !  Need to increase !  High false positives / !  Discomfort during revenues, leverage false negatives x-rays office staff to reduce !  Can’t detect early !  X-ray exposure costs tooth decay !  Painful and costly !  Need to attract new !  Can’t detect decay on restorations patients all tooth surfaces !  Weakened tooth !  Need new !  Interference from structure diagnostic tools that orthodontics provide more accurate detection of tooth decay Pg 17!© 2011 Peter Evans, MaRS Discovery District!
  • 18. Case Study: Quantum Dental! Value Proposition Value to the Dentist !  Attract new patients: with state of the art technology and a minimally invasive approach !  More patient visits: more frequent visits for patients enrolled in remineralization programs !  Reduce costs: scans can be performed by other staff (hygienists, assistants) !  Affordable: flexible leasing options provide immediate profitability Value to Patients & Insurers !  Reduce costly & painful restorations Pg 18!© 2011 Peter Evans, MaRS Discovery District!
  • 19. Case Study: Quantum Dental! What it is – Canary Console !  Show product with call outs Laser & Intra-oral Camera Console Eye Shield Handpiece CA Patent # 2314691 US Patent # 6584341 Pg 19!© 2011 Peter Evans, MaRS Discovery District!
  • 20. Case Study: Quantum Dental! What it is - Screenshot Odontogram Menu Options Camera Image Canary Number Pg 20!© 2011 Peter Evans, MaRS Discovery District!
  • 21. Case Study: Quantum Dental! The Life Cycle of Tooth Decay Healthy Early Advanced Tooth Enamel Decay Enamel Decay Demineralization Remineralization Remineralization Therapies The Canary System Scan X-Ray, Drill Fill & BIll Pg 21!© 2011 Peter Evans, MaRS Discovery District!
  • 22. Opportunity Awaits! Lots of Room in the Market to Scale a Business! 2! Attractive Market! Pg 22!© 2011 Peter Evans, MaRS Discovery District!
  • 23. Sizeable Market Opportunity! It’s Very Big …And you Can Get To It! !  Size: What’s being spent today on problem? Build from ground up. Can the market Market Size support multiple players?! !  Addressability: What’s the reasonable market you can serve? ! !  Trends: Focus on Formative Forces (PESTLEC) –Is the problem getting worse or growing over time?!Min 3! Attractive Market! Min 7! !  Charts: Keep it visual and engaging! !  Segments: Going Niche or broad?! !  Global: Identify other markets! !  Proof: Use 3rd Party reports! !  Thought Leadership: Are you using primary research to gain insight?! Key Message: We have unique insight into the market! Pg 23! © 2011 Peter Evans, MaRS Discovery District!
  • 24. Early Customers/Prospects! Nothing really happens till somebody sells something! Market Size !  Status: Closed vs. Prospects and " Paid vs. Free Trial ! !  Categorize: Key segments etc.! !  Contextualize: Why they bought!Min 3! Attractive Market! Min 7! !  Personify: Describe customer personas! !  Logos: Create Visual appeal (not clutter)! Customers !  Evangelists: Customer quotes to validate market pain and size ! Key Message: We have buyers who must have our solution ! Pg 24! © 2011 Peter Evans, MaRS Discovery District!
  • 25. Making Money! Where does the growth and profit come from?! Market Size !  Key Metrics: Pricing, Avg. Deal Size, Registrations/Subs., Churn, LTV etc. Revenue Model Note: Cost to Acquire is perhaps the most overlooked and important metric! !  Channels: What are the downstreamMin 3! Attractive Market! Min 7! costs to sell and service the customer (is this built in?)! !  Competition: Is your model sustainable if Customers competitors start stealing share? Have you factored in potential of downward price pressure over time? ! Key Message: We’ve validated our revenue model and can ! demonstrate how it will allow us to scale the business ! Pg 25! © 2011 Peter Evans, MaRS Discovery District!
  • 26. Acquiring Customers! The most visible proof there’s a market for your solution ! !  Visibility: Critical to success.. " Market Size what’s your unique story?! !  Lead Generation Programs: What Revenue Model marketing approaches will you use (stay high level – categorize)! !  Sales Model: Direct vs. Channel (Do you have partners? Have you built a wave forMin 3! Attractive Market! Min 7! channels to ride?) ! !  Systems: Do you have an infrastructure to scale (CRM/Inbound Mktg. Platforms etc.)! Customers !  Testing: Do you have capability to test value prop./offers?! Marketing & Sales !  Stages: Do you have the ability to pivot from launch to growth to maturity?! Key Message: We have programs, systems and talent to ! drive visibility, lead gen. and close deals! Pg 26! © 2011 Peter Evans, MaRS Discovery District!
  • 27. Case Study: Wave Accounting! Changing the business of small business accounting. November 9th, 2010! Kirk Simpson, President & CEO MaRS Angel Breakfast" Pg 27!© 2011 Peter Evans, MaRS Discovery District!
  • 28. Case Study: Wave Accounting! The Market Opportunity Wave is at the forefront of some powerful trends: 1.  The explosion in SaaS •  primary driver is accessibility anywhere •  collaboration Free Agent •  auto-backup Nation 2.  Paper to digital •  lose the shoebox by bringing in digital 28.5 million copies of the transaction in North America! 3.  Wireless •  turn downtime into productive time Strong desire to be organized, •  increase automation lack competency in this area but looking for control. 4.  Collaborative Consumption •  show me what my peers are spending so I can make better decisions Confidential – Wave Accounting Inc., 2010 2 Pg 28!© 2011 Peter Evans, MaRS Discovery District!
  • 29. Case Study: Wave Accounting! Recent Successes !  1.8 million users in 2 years – !  2 million + users 4.2 million after 4 years !  Monthly fee for use !  Sold for $170 million (17 times rev or $140 per user) to Intuit in 2009 Confidential – Wave Accounting Inc., 2010 3 Pg 29!© 2011 Peter Evans, MaRS Discovery District!
  • 30. Case Study: Wave Accounting! Revenue Model Targeted Offers & Research !  Wave will embed targeted offers within the app based on users’ data (never against personally identifiable information) – Telus now a customer !  Selling aggregated research about what’s happening in this key market Confidential – Wave Accounting Inc., 2010 4 Pg 30!© 2011 Peter Evans, MaRS Discovery District!
  • 31. Case Study: Wave Accounting! Revenue Model Premium Products Tax Returns Web-based tax preparation (for a fee) Additional modules available for a fee (built by Wave or through 3rd party integrations) !  Payroll (in discussions with several U.S. and Canadian providers) !  CRM !  Receipt entry (shoeboxed) !  Email learning Confidential – Wave Accounting Inc., 2010 5 Pg 31!© 2011 Peter Evans, MaRS Discovery District!
  • 32. Case Study: Wave Accounting! Go to Market Strategy CAPTURE RETAIN !  PR – already featured in the !  Integration Stickiness Financial Post and Profit Auto-syncing banking data Magazine. U.S. PR through every night November Hoffman. !  Communication: !  Social media and blog to drive Informative, insightful weekly 16 SEO emails !  Partnerships, i.e. Freshbooks, !  Offers: Value-added, banks, accounting firms contextual, time sensitive offers LAUNCH !  Vertical Communities: Custom chart of accounts for 40+ !  Collaboration tools with industries internal and external advisors (i.e., accountant) !  Advertising: Google Adwords, Facebook Ads, LinkedIn DirectAds !  Focus on customer service Confidential – Wave Accounting Inc., 2010 6 Pg 32!© 2011 Peter Evans, MaRS Discovery District!
  • 33. You are in the Best Position to Win!Many of the essential pieces are in place ! #3! Unique! Advantage! Pg 33!© 2011 Peter Evans, MaRS Discovery District!
  • 34. Partners! Show how you can punch above your weight ! !  Role: What value will they add to your solution Partners Research/Development/Sales/Support etc.! !  Reputation: Do you you have the right players in the market you are serving? ! !  Category Fit: Do they have sufficient market power?! Min 8! Unique Advantage! Min 10! !  Executive Sponsorship: Do you have buy in from key people inside the channel? ! !  Incentives: Is the partner aligned financially to support you?! !  Longer Term: Is there competitive threat or potential M&A?!Key Message: Important market players buy into our !vision and want to work with us! Pg 34!© 2011 Peter Evans, MaRS Discovery District!
  • 35. Technology/IP! Creating barriers to entry! !  Technology: Validate how you are different? Partners How much market lead do you have? What degree of leverage and scale do they create?! !  Process: Are there unique process elements of how your technology works?! !  Licenses: Are there 3rd party components of Min 8! Unique Advantage! Min 10! your solution that are licensed? Do you have an exclusive right to the technology? ! !  Patents: What is the focus of the patent and Technology/IP what stage are you at? (provisional filing, patent granted) – Not a bad idea to mention any name brand attorneys you work with.!Key Message: We’ve nailed a problem that is hard to solve. !It will be hard for competitors to catch up! Pg 35!© 2011 Peter Evans, MaRS Discovery District!
  • 36. Team & Advisors! The capabilities to execute on the plan! !  Company Background: List experience in Partners terms of key companies each team member worked for. List “pedigrees” (notable exits).! Team & Advisors !  Planned Hires: Speak briefly to what primary role they will play in the venture! !  Achievement: Focus on a key aspect of Min 8! Unique Advantage! Min 10! their experience that uniquely qualifies them for the venture! !  New Hires: Where applicable, speak to any Technology/IP key people you may be hiring to build out the team!Key Message: We have assembled the right mix of people whounderstand our target customers and the dynamics of the marketplace.We have “know how” and “know who.”! Pg 36!© 2011 Peter Evans, MaRS Discovery District!
  • 37. Case Study: Verold! Automating 3D! Jad Yaghi! Co-Founder and CEO! Jad.yaghi@verold.com! Pg 37!© 2011 Peter Evans, MaRS Discovery District!
  • 38. Case Study: Verold! Competitors! Manual Tools ! Automated! Other Scanners! Rapid Asset Creation! !! !! No Special Hardware! !! !! !! Ready to Animate ! !! !! Any Size Object! !! !! !! Full Automation! !! !! Simple to Use! !! Note: Other visuals such as 2x2’s can also be used here Pg 38!© 2011 Peter Evans, MaRS Discovery District!
  • 39. Case Study: Verold! IP Portfolio! •  R&D conducted top German University (Computer Graphics Lab! •  Concepts, high level methods by our CTO, Matthew Sloly! •  Key Patents:! IP Developed by Verold! Licensed IP! Work-flow for automated creation of Automatic retargeting of 3D meshes! animation-ready 3D models! Animation content transfer! Multi-user real-time 3D model Automated Rigging! reconstruction! 3D City reconstruction from images! Pg 39!© 2011 Peter Evans, MaRS Discovery District!
  • 40. Case Study: Verold! Team/Advisors! Name! Position! Background! Matthew Sloly! Co-Founder & •  Internationally recognized digital artist with work in the CTO! collection of the National Gallery of Canada! •  Co-Invented majority of the IP being commercialized! Jad Yaghi! Co-Founder & •  Serial entrepreneur with over eight years management CEO! experience in startup environments! •  Previously Strategy Consultant with Monitor! Oliver Schiffers! CMO! •  Founded two online and VR companies 1996 and 1998! •  10 years experience, Senior Consultant and Head of Marketing Strategy in ICT, Sapient! Alexander Oganov! Business •  Angel InvestorSuccessfully invested in 32 early stage Development! companies! Nils Martins! 3D Engine •  Virtual Reality Center, Aachen! Developer! •  4 years geometry processing and game engine development! Dr. Leif Kobbelt! Chief Computer •  Computer scientist at RWTH Aachen! Scientist! •  Geometry Processing! Advisory Board! Chris Cole (Co-founder of Mathematica, ActiveWorlds, consultant Disney Imagineering) ! !! Robert Quance (entrepreneur in Residence, MaRS)! Georgy Oganov (Chief strategist at Gaz-Prom, former Russian ambassador)! Pg 40!© 2011 Peter Evans, MaRS Discovery District!
  • 41. There is Upside for Investors!Presenting the Offer for Investment! #4! Compelling! Investment! Pg 41!© 2011 Peter Evans, MaRS Discovery District!
  • 42. How You Will Make Money! Key Metrics that Explain the Bottom Line for Investors! Financials !  Key Numbers: Revenues, Expenses, EBITDA, Customers, Headcount ! !  Burn Rate: What is the net cash out month! !  Assumptions: Be prepared to defendMin 10! Compelling Investment! End! them ! !  Scenarios: Be able to speak to impact of various scenarios (i.e. Cost of Acquisition is x% higher than forecast or lack of conversion from free to premium)!Key Message: Our venture clearly offers a superior return for our investors.! Pg 42!© 2011 Peter Evans, MaRS Discovery District!
  • 43. The Ask! Value & Deal Structure/Terms & Use of Funds! !  Investment Structure/Terms: Type of Instrument (Convertible Debt, Equity) and what are the terms Financials of the deal ! !  Amount: What’s been raised and what is left in the round? Use of Proceeds: What milestones will you achieve (with the investors money)! !  Runway: What amount of time does the currentMin 10! Compelling Investment! End! money buy (can you hit breakeven or is a new round required?) ! !  Pipeline: Be prepared to speak to who is committed so far and who are you approaching. Offer Details You must show momentum – “herd dynamics.”! !  Valuation: Be careful about “premature” discussions regarding pre-money value – don’t price from the podium! !Key Message: Our structure and terms should meet your investment criteria! Pg 43!© 2011 Peter Evans, MaRS Discovery District!
  • 44. Sample Slide! Pg 44!© 2011 Peter Evans, MaRS Discovery District!
  • 45. Sample Slide! Pg 45!© 2011 Peter Evans, MaRS Discovery District!
  • 46. A Recap: The 4 Components of the Pitch! #1! #3! Real! Unique! Problem! Advantage! #2! #4!Attractive Compelling Market! Investment! Pg 46!© 2011 Peter Evans, MaRS Discovery District!
  • 47. 7 Signals…you need to send!What a Great Pitch should Communicate! 1. Honesty……........................ !Gives straight answers to investor questions! 2. Credibility…..........................Demonstrates customer insight/thought leadership! 3. Resourcefulness……………!Can make an investor’s dollar go far as a startup ! 4. Logic …………….……………Makes wise, pragmatic decisions! 5. Passion……………………….Genuine commitment & ability to excite! 6. Humility……………………….Team is coachable and will listen to advice ! 7. Leadership……………………Has the ability to attract and lead a winning team! Pg 47!© 2011 Peter Evans, MaRS Discovery District!
  • 48. Winning Bonus Points with Investors!Some secrets!!  Storify! Create a way to engage the investor!!  Personify! Investors are in the people business…!!  Simplify! Use frameworks and avoid jargon !!  Disnify! Use graphics where they make sense !!  Verify! Can you finish this sentence? “As evidenced by…”! Pg 48!© 2011 Peter Evans, MaRS Discovery District!
  • 49. Our Thanks to MaRS Clients Lisa Crossley Kirk Simpson Jad Yagani CEO President & CEO CEO Quantum Dental Technologies Wave Accounting Verold www.thecanarysystem.com www.waveaccounting.com www.verold.com Pg 49!© 2011 Peter Evans, MaRS Discovery District!
  • 50. Peter Evans, Senior MaRS Advisor! @techmarketer! http://ca.linkedin.com/in/peterevansprofile! Pg 50!© 2011 Peter Evans, MaRS Discovery District!