How to Pitch a VC
iCamp Startup Acclerator (#iCamp)
Dave McClure
500 Startups, Master of 500 Hats
iCamp Startup Accelerato...
WARNING:
this deck is guaranteed to offend,
provide tragically incorrect advice,
and perhaps get you arrested.
deal with i...
Essential Elements of your Pitch
•  Elevator Ride (30-sec quick pitch)
•  The Money Shot (demo)
•  Size Matters (market)
•...
Pitch MY PROBLEM
(not YOUR SOLUTION)
Post: “Your Solution
is Not My Problem”
[Pardon The Blatant Commercial]
Dave McClure
Founding Partner, 500 Startups
00’s & 10’s:
•  Investor: Founders Fund, Facebook fbFund, 500 Startups
•  Comp...
500 Startups Seed Fund
Mountain View, CA – Founded 2010
•  Seed Fund & Startup Accelerator
– 10,000 sq ft / Silicon Valley...
[How to Pitch a VC (or Angel)]
10 Slides to an Awesome Pitch
1. Elevator Pitch
2. The Problem
3. Your Solution
4. Market Size
5. Business Model ($)
6. Pr...
10 Slides to an Awesome Pitch
1. Elevator Pitch
2. The Problem
3. Your Solution
4. Market Size
5. Business Model ($)
6. Pr...
1. The Elevator Pitch (only 30 sec!)
•  Short, Simple, Memorable:
–  “What, How, Why.”
•  3 key words or phrases
–  “Mint....
2. The Problem
•  What is The Problem? … Make it Obvious.
–  “Ouch. Yeah, I have that too…”
•  Who has it?
•  “Painkiller ...
Pitch MY PROBLEM
(not YOUR SOLUTION)
Post: “Your Solution
is Not My Problem”
3. Your Solution
•  Great Products & Companies do 1+ of 3 things:
–  Get You LAID (= sex)
–  Get You PAID (= money)
–  Get...
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
•  http://ScreenCast.com
•  http://Flickr.com
•  http://YouTube.com
•  http://Scribd...
[ The Money Shot ]
•  http://Jing.com
•  http://ScreenCast.com
•  http://Flickr.com
•  http://YouTube.com
•  http://Scribd...
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 Size or Potential
•  Co...
6. Proprietary Technology / Expertise
•  VCs *really* like unfair advantages:
–  BIG market lead
–  experienced team
–  “s...
7. Competition
(why you’re better *or* different)
•  List *all* competitors
•  Show how you’re better…
… or at least diffe...
Better or Different.
Funny!
Shocking !!!
Accepted
Not Funny.
8. Marketing Plan
•  PR
•  Contest
•  Biz Dev
•  Direct Marketing
•  Radio / TV / Print
•  Telemarketing
•  Email
•  SEO /...
8. Marketing Plan
•  PR
•  Contests
•  Biz Dev
•  Direct Marketing
•  Radio / TV / Print
•  Telemarketing
•  Email
•  SEO ...
9. Team
People that VCs want to see on your team:
•  Geeks with deep tech experience
•  Entrepreneurs who have sold compan...
10. Money, Milestones
•  How Much Money?
–  3 Budgets: Small, Medium, Large
•  What will you do with Capital?
–  New Hires...
Additional Resources
•  Dave McClure:
–  Startup Metrics for Pirates (AARRR!)
–  ZapMeals Sample Pitch Presentation
–  Mas...
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Dave McClure - how 2 pitch

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slides on how to think, produce and perform a pitch for a VC or a business angel.

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Dave McClure - how 2 pitch

  1. 1. How to Pitch a VC iCamp Startup Acclerator (#iCamp) Dave McClure 500 Startups, Master of 500 Hats iCamp Startup Accelerator, Shanghai, May 2012 dave@500startups.com / @DaveMcClure
  2. 2. WARNING: this deck is guaranteed to offend, provide tragically incorrect advice, and perhaps get you arrested. deal with it.
  3. 3. 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.
  4. 4. Pitch MY PROBLEM (not YOUR SOLUTION) Post: “Your Solution is Not My Problem”
  5. 5. [Pardon The Blatant Commercial]
  6. 6. Dave McClure Founding Partner, 500 Startups 00’s & 10’s: •  Investor: Founders Fund, Facebook fbFund, 500 Startups •  Companies: Mint.com, SlideShare, Twilio, WildFire, SendGrid •  Marketing: PayPal, Simply Hired, Mint.com, O’Reilly Media •  Speaker: Lean Startup, Web 2.0, Stanford/Facebook 80’s & 90’s: •  Entrepreneur: Founder/CEO Aslan Computing (acq’d) •  Developer: Windows / SQL DB consultant (Intel, MSFT) •  Engineer: Johns Hopkins‘88, BS Eng / Applied Math
  7. 7. 500 Startups Seed Fund Mountain View, CA – Founded 2010 •  Seed Fund & Startup Accelerator – 10,000 sq ft / Silicon Valley HQ •  Design, Distribution, Data •  300+ Portfolio Companies –  Twilio –  Wildfire –  SendGrid –  TaskRabbit –  MakerBot –  Smule –  9GAG J
  8. 8. [How to Pitch a VC (or Angel)]
  9. 9. 10 Slides to an Awesome Pitch 1. Elevator Pitch 2. The Problem 3. Your Solution 4. Market Size 5. Business Model ($) 6. Proprietary Tech 7. Competition 8. Marketing Plan 9. Team / Hires 10. Money / Milestones Demo Goes Here Teaser Image Goes Here
  10. 10. 10 Slides to an Awesome Pitch 1. Elevator Pitch 2. The Problem 3. Your Solution 4. Market Size 5. Business Model ($) 6. Proprietary Tech 7. Competition 8. Marketing Plan 9. Team / Hires 10. Money / Milestones The Money Shot: Demo Screen Shots Video Demo Goes Here Teaser Image Goes Here Business Metrics (NOT Revenue Projections) Cu$tomer Testimonial$ “This Shit Rocks.”
  11. 11. 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 J (….when you pitch ------> )
  12. 12. 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”
  13. 13. Pitch MY PROBLEM (not YOUR SOLUTION) Post: “Your Solution is Not My Problem”
  14. 14. 3. Your Solution •  Great Products & Companies do 1+ of 3 things: –  Get You LAID (= sex) –  Get You PAID (= money) –  Get You MADE (= power)
  15. 15. 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)
  16. 16. [ The Money Shot ] •  http://Jing.com •  http://ScreenCast.com •  http://Flickr.com •  http://YouTube.com •  http://Scribd.com •  http://SlideShare.com Demo Screen Shots Video •  PRACTICE! PRACTICE! PRACTICE! •  demo will FAIL -- have a backup (screenshots, local video, interpretive dance) •  expect to be interrupted
  17. 17. [ The Money Shot ] •  http://Jing.com •  http://ScreenCast.com •  http://Flickr.com •  http://YouTube.com •  http://Scribd.com •  http://SlideShare.com Demo Screen Shots Video •  PRACTICE! PRACTICE! PRACTICE! •  demo will FAIL -- have a backup (screenshots, local video, interpretive dance) •  expect to be interrupted and remember: •  The Script is NOT your Slides – The Script is the FACE of your Audience
  18. 18. 4. Market Size •  Bigger is Better •  Top Down = someone else reported it –  Forrester, Gartner, Your Uncle
  19. 19. 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 = $X * Y * Z annually = a big friggin’ # –  Market growing @ 100+% per year
  20. 20. 5. Business Model (How Do You Make Money?) •  Describe Top 1-3 Sources of Revenue –  Prioritize by Size or Potential •  Common Revenue Models: –  Direct: ecommerce, subscription, digital goods –  Indirect: advertising, lead gen, affiliate
  21. 21. 6. Proprietary Technology / Expertise •  VCs *really* like unfair advantages: –  BIG market lead –  experienced team –  “superior” technology
  22. 22. 7. Competition (why you’re better *or* different) •  List *all* competitors •  Show how you’re better… … or at least different if not better or different then -> “NICHE TO WIN”
  23. 23. Better or Different. Funny! Shocking !!! Accepted Not Funny.
  24. 24. 8. Marketing Plan •  PR •  Contest •  Biz Dev •  Direct Marketing •  Radio / TV / Print •  Telemarketing •  Email •  SEO / SEM •  Blogs / Bloggers •  Viral / Referral •  Affiliate / CPA •  Widgets / Apps •  LOLCats … how do you get customers & distribution? lots of channels & decisions… choose a few:
  25. 25. 8. Marketing Plan •  PR •  Contests •  Biz Dev •  Direct Marketing •  Radio / TV / Print •  Telemarketing •  Email •  SEO / SEM •  Blogs / Bloggers •  Viral / Referral •  Affiliate / CPA •  Widgets / Apps … how do you get customers & distribution? lots of channels & decisions… choose a few: 3 Things That Matter / To Measure : 1.  Volume 2.  Cost 3.  Conversion
  26. 26. 9. Team People that VCs want to see on your team: •  Geeks with deep tech experience •  Entrepreneurs who have sold companies •  Sales/Marketing who bring in customer$
  27. 27. 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)
  28. 28. Additional Resources •  Dave McClure: –  Startup Metrics for Pirates (AARRR!) –  ZapMeals Sample Pitch Presentation –  Master of 500 Hats Blog: “Greatest Hats” (top blog posts) •  Steve Blank: 4 Steps to Epiphany, Customer Development Methodology •  Eric Ries: StartupLessonsLearned •  Sean Ellis: Startup-Marketing.com •  Andrew Chen: AndrewChenBlog.com •  Brad Feld, Jason Mendelson: AskTheVC.com •  Aydin Senkut: Felicis Ventures blog •  Mark Suster: Both Sides of the Table •  VentureHacks.com •  StartupCompanyLawyer.com

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