Lecture 7: Pitching to Win | Intro to Venture Capital-FINAN 6300 | Chad Jardine, University of Utah, 2008–

3. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 12 Reasons VCs Say “No” Why VCs Say No 1. You aren’t swinging for the fences 2. It’s hard making a living at the horse track 3. The cream didn’t rise 4. You lost momentum 5. No dry powder 6. The Goldilocks Principle

4. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 12 Reasons VCs Say “No” Why VCs Say No 7. Industry alignment 8. You’re in the wrong place 9. The portfolio mix 10. An ugly capital stack 11. Lack of social proof 12. You’re missing a champion within 13. Know when to say No yourself

7. Venture capital may not be the right way to fund your business Is the Company Worthy

8. Is the Company Worthy Bryce Roberts Founder, Indie VC

9. Product Risk: Is it ready for sale? Is the Company Worthy

10. Market Risk: Can you sell it? Is the Company Worthy

11. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. All business projections point to the Northeast Is the Company Worthy

12. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Investors give you an automatic haircut Is the Company Worthy

13. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 100% of businesses MISS their projections Is the Company Worthy

14. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Don’t say your projections are conservative. Is the Company Worthy

15. Advanced Venture Capital: FINAN 6310 Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Is the Company Worthy We call this the entrepreneur’s lie Guy Kawasaki Author, Venture Capitalist

16. Do you have a monopoly and a moat? Is the Company Worthy

17. Can you demonstrate product/market fit? Is the Company Worthy

18. Entrepreneurs innovate, customers validate Is the Company Worthy Paul Ahlstrom Author, Nail It Then Scale It

19. Your magic ratio Is the Company Worthy

20. CAC Customer Acquisition Cost CAM: LTV/CAC Source: http://blog.asmartbear.com/visualizing-the-interactions-between-cac-churn-and-ltv.html LTV Lifetime Value of Customer Payback/ Breakeven Churn Attrition CAC = Total Spend ÷ Total Customers LTV = GM x (Total Customers-Churn) LTV/CAC = Magic Ratio

21. Profits cover a multitude of sins Is the Company Worthy

22. Is the Company Worthy Culture eats strategy for lunch https://youtu.be/YVVick2kf8c —Ben Horowitz Cofounder, Andreesen Horowitz

23. Your company is more important than how convincing your pitch is? Is the Company Worthy —Paul Graham Cofounder, Y-Combinator

24. Ultimately, your fundamentals will bear out Is the Company Worthy

27. VCs are people too Pitching to win Marc Andreesen Andreesen Horowitz

28. Present as you really are Pitching to win Garr Reynolds Author, The Naked Presenter

29. Everything runs on trust Pitching to win

30. How you get to pitch… Pitching to win • Build a company • Prepare your docs • Build A & B lists of good match investors • Find ways to get introduced • Send intro email • Screening call (potentially follow-ups) • Meet in-person (potentially follow-ups) • Investment Committee • Term Sheet • Due Diligence • Close funding

31. Hi Sco', I hope things are going awesome for you. It’s been awhile since we met. I was with [OLD COMPANY] in the early days and had an opportunity to come out and visit your offices in Boston. I’ve been working on an edtech SaaS company called GoReact with new partners for about a year and a half. This may be outside your investment profile—but could be interesQng in the future. The bare essenQals: KPIs: $2M ARR, 400% YOY growth, 90% GM, 185% DRR, 4.5B TAM Trac)on: 230+ university customers, 60K student users, 1M videos on the plaòrm From what I know of you and [YOUR FIRM], I’d like to put you on our update list. I’ve a'ached our execuQve summary to give you a snapshot of where we are in our growth. Kind regards, Chad Jardine 801-701-1802

32. defines the next big thing in learning technology. “The first attempts to use technology to fix education have focused on using the Internet to distribute traditional content to a wider audience. This is good, but the Internet is a fundamentally different medium and capable of much more Solutions that combine the mass scale of technology with one-on-one in- person interaction are particularly interesting to us. This may not require a ‘breakthrough’ technology in the classical sense, but at a minimum it will require very new ways of doing things.” — REQUESTS FOR STARTUPS 2016 INTRODUCING education combine mass-scale tech with one-on-one in-person interaction

33. 256 West Center • Orem, Utah 84057 • 801.717.3410 • www.goreact.com Sep 2015 • Private and Confidential. Do not distribute. Executive Business Summary at is o ea t Sports teams have used video for skill improvement for decades. It’s a scientifically proven approach, but outside of sports the options are awful. Well, not anymore... GoReact is game film for everyone else. GoReact allows mentors to put their performance-based skills training on steroids. It’s a cloud-based platform for 1:1 video coaching and assessment at scale. With GoReact, instructors teach more students in way less time, and the students develop skills way faster. ea Ken Meyers Founder/CEO—Veteran growth-stage SaaS executive (3 Inc. 500s) known for product savvy & execution. AdvancedMD (sold to ADP), Public Engines (sold to Motorola), pre-Omniture (sold to Adobe) Chad Jardine VP Marketing—High-growth marketer from AtTask (now Workfront), WakeUpNow Jeff Tanner VP Sales—High-performing SaaS sales executive coming off a great 7-year run at InContact (Nas:SAAS) Josh Beutler VP Business Development—Veteran ed tech sales exec from School Improvement, TrueNorth Ben Schmuhl CTO—Top-notch tech/product leader from Adaptive supercomputing, MX, SurgeWorks Katie Atkins VP Finance—Seasoned SaaS financial leader from AdvancedMD, Curve Dental, and Public Engines ar et GoReact was born in the education market. We’ve found that organizational learning/corporate training has nearly identical needs. Company Performance $2M 4× 90% 185% $4.5B ARR ro t ross ar in DRR TAM Traction and Market Fit 8 200+ 4K+ 60K+ 1M+ ountries universities ourses students videos 70 ears SaaS perien e $7 Billion+ $4.5 Billion Total market Near-term addressable Education: 2.5 annual Professional: 2.0 annual S ore ard

34. 256 West Center • Orem, Utah 84057 • 801.717.3410 • www.goreact.com Sep 2015 • Private and Confidential. Do not distribute. Proble Educators know that video, coupled with feedback, is the key to rapid learning in performance-based disciplines: Some teachers grade up to 1,000 videos per semester! Current options stink— teachers either struggle with clunky software put out by education giants like Pearson and McGraw-Hill, use DIY solutions like YouTube, USB drives, paper forms and Word files, or they drop out of their preferred teaching method entirely. Overall, existing video solutions are either too expensive/complex, too logistically painful at scale or totally miss the mark in real-life teaching scenarios. Solution GoReact is ridiculously easy to use and priced right for rapid adoption among teachers. In short, it allows them to: 1. Record, stream or upload student video (or allow students to self-record). 2. Break down the video easily using time-coded comments, ratings, tags, and rubrics/scorecards. 3. Improve skill development by reviewing on-video feedback anytime, anywhere. It’s all cloud-based and delivered on technology people already have (webcams, mobile devices, etc.) With GoReact’s rubric and analytics tools they have complete visibility into student progress. Students see feedback in context and get the most from their practice. Strate GoReact is positioned to be the dominant video assessment platform. We don’t create content, or focus on old-school content distribution. Instead, we strengthen the tie between teachers and students by providing a scalable platform for their 1:1 interaction. We’re doing this by: 1. Building a world-class core platform for video capture (encoding, storage) and on-video annotation (comments, multimedia, structured feedback, analytics). 2. Distributing the product both directly and with channel partners in targeted high-value segments. We’ve proven this strategy in 3 disciplines already (communication, sign language, teacher observation) and in strategic deals with School Improvement Network, SAGE Publishing, AmEx, and Virgin Atlantic. We’re mid-deal with Instructure, McGraw-Hill and Lockheed Martin and are ready to attack additional targets, including corporate markets. Series We are on the verge of profitability, but cannot take full advantage of our opportunity to grow on our profits alone. We’re raising capital to continue scaling to meet demand, deepen analytics, and to jump on our international and corporate opportunities—all in line with the timing of market trends. Public Speaking Sales Coaching Language Training Teacher Observation Trainer Certification Performing Arts Clinical Practicum and ore... ea ers at ours o student video sub itted on S drives t en ive eedba ... on paper. Revenue (000s)

35. Hi Chad, Great to hear from you and thanks for the opportunity to know more about your company! This is definitely an area of interest and we definitely have interest in invesQng in another great company in Utah. We are investors in [company] and acQvely invesQgate the EdTech sector. I am copying my partner [partner], who would be good to talk to about it. Perhaps if you guys think that there is a good investment fit at some point, he and I can come out and meet your team? [Partner], can you follow up? Thanks, S

36. FOMO Pitching to win

37. Do your research Pitching to win

38. Warm intros are best Pitching to win

39. Nobody likes a taker Pitching to win

40. Prep for rejection Pitching to win Brian Chesky CEO, Airbnb

41. Prep for rejection Pitching to win

43. Pitching to win

44. There’s no conspiracy Pitching to win “People are not against you, they are just for themselves.” Laozi Tao Te Ching

45. Wacky pitch power dynamic Pitching to win

46. know your pitch cold Pitching to win

47. Pitching to win James Watson & Francis Crick Discovered DNA

48. You ought to be able to pitch anything in 15–20 min. Pitching to win Oren Klaff Author, Pitch Anything

49. Your first pitch or two, you won’t be on your A game. Pitching to win Mark Suster Partner, Upfront Ventures

50. know your company cold Pitching to win

51. Your story is more important than the facts Pitching to win Seth Godin Author

52. Name the enemy Pitching to win

53. VCs talk Pitching to win

54. Pitching to win 10-20-30 Guy Kawasaki 10 slides 20 minutes 30 point font

55. Building your deck—two absolutes: opportunity & reason to believe Pitching to win

56. Try starting with one slide Pitching to win

57. 4 Ms 6 Ts Management Model Market Momentum Team Technology Traction Timing 10x Potential Terms

58. Your CAM Pitching to win

59. Pitching to win

60. Ruthless honesty: Always tell the truth Pitching to win

61. Stories in the statements Pitching to win

62. Keep the lines open Pitching to win

Lecture 7: Pitching to Win | Intro to Venture Capital-FINAN 6300 | Chad Jardine, University of Utah, 2008–

Lecture 7: Pitching to Win | Intro to Venture Capital-FINAN 6300 | Chad Jardine, University of Utah, 2008–

Recommended

More Related Content

Recently uploaded

Recently uploaded(20)

Featured

Featured(20)

Lecture 7: Pitching to Win | Intro to Venture Capital-FINAN 6300 | Chad Jardine, University of Utah, 2008–