Pitching
For Dollars
estor
Inv

Hacks
tation
resen
P
February 20, 2014
Opening story about a now-banned Chinese torture called Ling Shi and how it relates
to investor presentations. Bottom line...
ACT I
PowerPoint is a Visual Medium
WIIFI
Stands for What’s In It For Investors. Why should investors
care about you, your product/service, your company?
PowerPoint vs. Word

Words go on a Word document. Most powerful
human sense is vision so make PPT slides visual.
Example of what not to do with PPT.
A visual way to explain previous slide.
Could even opt for zero text.
90% of what your brain processes is visual.
Only 10% is text. Visuals are processed
60,000 times faster than text.

Visual...
Heat map samples showing where eyes
focus most. First of four examples.

Pictures
ACT II
Focus and Simplicity
WIIFI
Vinod Khosla’s Five Second Rule: If
your audience can’t figure out your slide
topic in 5 seconds, you’ll lose them
“I cannot say that I do
not disagree with you.”
--Groucho Marx

Did you figure out what he
meant in 5 seconds or less?
The Microsoft logo is simple.
Bill Gate’s presentation slide is neither simple nor focused.
Neither is Steve Ballmer’s.
Perfect example of a clean simple logo.
The world’s thinnest notebook. MacBook Air.

Apple’s ads are as simple and focused as their logo.
Simplicity and focus in a presentation. One visual and zero text..
ACT III
Text, Charts and Graphs
WIIFI
Fonts and Sizes

Text needs to be big enough to be read by the people in the farther seats
from the screen. Dark sans seri...
Anticipation Space
• Blah, blah, blah
• Blah, blah, blah
• Blah, blah, blah
Anticipation Space
•
•
•
•
•
•
•
•

Blah, blah, blah
Blah, blah, blah
Blah, blah, blah
Blah, blah, blah
Blah, blah, blah
B...
Anticipation Space
• Blah, blah, blah
• Blah, blah, blah
• Blah, blah, blah
No Anticipation Space
• Blah, blah, blah
• Blah, blah, blah
• Blah, blah, blah
A slide title should NEVER be
a full, complete, grammatically
correct sentence.
Short Slide Titles: Powerful!
Sub-Bullet Points

•Blah, blah, blah
– Reason 1
– Reason 2
– Reason 3

Default sub-bullet point is a dash or hyphen. Inves...
No Sub-Bullet Points

•Blah, blah, blah
 Reason 1
 Reason 2
 Reason 3
Example of a terrible bar chart.
Example of an even worse bar chart.
Another example of a terrible bar chart.
Annual Revenues

($millions)

5.9
Product A

4.3

2.1

2.6

3.2

Product B

1.3

’07

Product C
’08

’09

’10

CAGR 18.8%
...
Do’s
Nail your opening!
Slides and Time: 20:00 Pitch
• 10 - 12 slides maximum
• 15 – 18 minutes maximum
• Prepare multiple pitch
decks
Preparation
• Speech
• Technology
• Details
Storyboarding

Use this technique created by Walt Disney.
Images and Text
• Text
• Text
• Text
On slides with text and an
image, put the image on the left
Eye Connection

SILENCE

Most teachers of public speaking techniques recommend eye
contact. Eye connection is far more pow...
Don’ts
X

Investment Sought
• Capital investment of $2,250,000:
X
Disclaimer

This Presentation (and any and all drafts and parts thereof) is/are based upon information supplied by the C...
X
X
X
X
X

Don’t Words and Phrases
•
•
•
•
•

“That’s a good question.”
“Honestly / Truthfully…”
“Think / hope / try / want”
“The ...
Q & A
7 Universal Issues
•
•
•
•
•
•
•

Competition
Contingencies
Costs/Pricing
Growth
Management
Problems
Timing
Every question...
Contact
Information
Luke Brown

310.846.5047 Office
luke.brown@growthink.com
linkedin.com/in/amanagementconsultant
twitter.com/DrPitchDeck
The End
USC Entrepreneur Club: Investor Presentation Hacks
USC Entrepreneur Club: Investor Presentation Hacks
USC Entrepreneur Club: Investor Presentation Hacks
USC Entrepreneur Club: Investor Presentation Hacks
USC Entrepreneur Club: Investor Presentation Hacks
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USC Entrepreneur Club: Investor Presentation Hacks

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Only 4% of entrepreneurs get funding from professional investors. In this presentation you'll discover the three vital elements of the investor pitch and how to dramatically improve your chances of getting investor funding for your business.

1. Public speaking techniques which attract and engage investors.
2. Pitch deck design used in IPOs by firms who have raised billions of dollars.
3. Q&A skills which show investors you have the management ability they demand.

Loaded with before-and-after examples, vivid stories, and skills gained from thousands of presentations, you’ll know why 95% of presentations are disasters and why PowerPoint has such a lousy reputation. You'll leave with actionable steps which you can take to make an immediate and positive impact on all three major areas of your investor presentation: your speech, your pitch deck, and the Q&A session with investors which follows your presentation.

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  • Opening story: Ling Shi
  • Act I: PowerPoint is a Visual Medium
    The red curtains will occur frequently throughout the presentation. This is what is known as a ‘bumper slide’, which is a graphic divider between major sections of a presentation.
  • Best Practices
    Use fewer than 15 words per slide
    Use Notes section for details
    Word document: for words (text)
    Powerpoint: for visuals (the most powerful human sense is vision)
  • A typical PowerPoint slide. This is ‘conventional wisdom’ for PowerPoint slides. It’s dull, uninspiring and will not get you investor funding.
    Pros:
    Slide title is very good. It’s a single topic and one line long.
    Black font (half credit).
    Cons:
    Too much text.
    Misspelled word: the last word should be ‘consistent’.
    Gradient background is distracting, making reading difficult.
    Inconsistent sentence endings (some have punctuation, some don’t).
    Inconsistent sentence length (most are one line; one is two lines).
    Ugly background color
  • A far more effective way to present the previous slide.
    One could even opt for zero text.
  • 90% of information transmitted to the brain is visual and visuals are processed 60,000 times faster in the brain than text.
    http://blog.hubspot.com/blog/tabid/6307/bid/33423/19-Reasons-You-Should-Include-Visual-Content-in-Your-Marketing-Data.aspx
    In 1986, a 3M-sponsored study at the University of Minnesota School of Management found that presenters who use visual aids are 43% more effective in persuading audience members to take a desired course of action than presenters who don't use visuals. The goal of the experiment was to persuade undergraduates to commit their time and money to attending time management seminars. Presenters of various skill levels participated. Researchers found that average presenters who used visual aids were as effective as more advanced presenters using no visuals. In addition, the study found that the audience expected the advanced presenters to include professional, quality visuals.
  • Ad for Australian diaper company with heat map results. Notice the heavy focus on the human face and only minor focus on the text.
  • Turning the baby 90 degrees – towards the text – significantly increased the focus on the text, though the main focus was still on the baby’s face.
  • By reducing the amount of text, people finally paid more attention to the text than to the baby’s face.
  • The focus on faces even extends to inanimate objects, even those with other distractions.
  • Act II: Focus and Simplicity
    Another bumper slide
  • Vinod Khosla’s 5 second rule. It your audience can’t figure out your slide in 5 seconds, you have lost them.
    Khosla Ventures is a venture capital firm.
  • Translation: “I disagree with you.”
  • The Microsoft logo is very simple.
  • Bill Gates does not understand the presentation concept of simplicity.
  • Neither does Steve Ballmer.
  • The Apple logo is the epitome of simplicity.
  • Apple ad for the MacBook Air.
    Note the simplicity of the ad: shades of black and white; no background distractions or logos; minor use of text.
  • Steve Jobs introducing the MacBook Air at the MacWorld Expo in 2008.
  • Act III: Text, Charts and Graphs
    Another bumper slide
  • Minimum recommended slide title font size: 32 point
    Minimum recommended slide body font size: 24 point
    Should be readable by the person in the very back on the room.
    Sans serif fonts (Arial, Calibri, Helvetica, Verdana) are easier toread than serif fonts like Times New Roman.
  • When using bullet points, stacking them at the top suggests to the audience there will be additional points to follow. When the additional points fail to materialize – when the audience’s anticipation is not met – the audience is disappointed.
  • Eliminate Anticipation Space by vertically centering the text box with the bullet points between the bottom of the title and the bottom of the slide.
  • The default sub-bullet point is a dash or hyphen. Investors, however, see a minus sign. You’re pitching an investor that your business can make them money. Why show them a minus sign?
  • This and the following slides depict poor use of charts. This slide has the following problems:
    Slide is in portrait orientation, not landscape
    The background image is distracting
    Too much text; some fonts are too small
    Numbers are vertical, not horizontal
    The dark pink background box does not add to the focus of the slide.
    Bars go from tallest to shortest instead of shortest to tallest.
  • A very poor bar chart example.
    Vertical text is difficult to read.
    Some numbers use commas and some use a diamond shaped decimal. Consistency is vital.
    Colors are too close in the color spectrum, making it difficult for those who are color blind (about 8% of men and 1% of women) to distinguish.Test your level of color blindness: http://www.xrite.com/custom_page.aspx?pageid=77&lang=en
    Dashed horizontal lines in the background. That’s a lot of minus signs!
    The Y axis on the left is redundant and can be eliminated.
    Bars are unorganized. Height should go from smallest to largest or vice versa.
  • This slide has the following problems:
    Vertical text for the years is difficult to read.
    The ‘3D’ angle of the bars (with the tree tops on top) makes it almost impossible to accurately read the bars.
    Again, the Y axis is unneeded.
    The bar colors are too close in terms of shading.
  • Example of a clean, simple, easy-to-read bar chart.
  • Another bumper slide
  • Nail your opening!Whether you start with a story, a joke, a quote, a question or some unexpected information, it’s vital to get them engaged immediately. This communicates to investors you have the capability to manage the presentation. This translates in their minds to someone who can manage a business.
    There are seven classic openings.
    Question: Asking a question directed at the audience
    Factoid: A powerful statistic or little known fact
    Retrospective/Prospective: A look backwards or forwards
    Anecdote: A short human-interest story
    Quotation: An endorsement about your business from a respected source
    Aphorism: A familiar saying
    Analogy: A comparison between two seemingly unrelated items which helps illuminate a complex, arcane or obscure topic
  • Storyboarding was invented by Walt Disney in the 1930s.
  • Another bumper slide
  • When using a pie chart, make sure to use the DOLLAR AMOUNT, not the percentage amount, of the funds you are seeking.
    Use no more than five uses for funds.
    Use colors from the entire color spectrum.
  • Lawyers may want a disclaimer to be used. Put the disclaimer in the appendix of your business plan, not in your pitch deck.
  • Using Clip Art says you’re cheap and are not to be taken seriously.
  • Using a laser pointer simply means you have too much information on a slide and that the slide is not focused. When slides are better, there is no need to use a laser pointer.
  • Turning your back to an investor is the epitome of rudeness. The “No Jerk” rule applies here.
  • Use of multiple pictures on a slide creates chaos. Stick to one picture per slide.
  • Another bumper slide
  • USC Entrepreneur Club: Investor Presentation Hacks

    1. 1. Pitching For Dollars estor Inv Hacks tation resen P February 20, 2014
    2. 2. Opening story about a now-banned Chinese torture called Ling Shi and how it relates to investor presentations. Bottom line: make too many mistakes and you ‘bleed out’.
    3. 3. ACT I PowerPoint is a Visual Medium
    4. 4. WIIFI Stands for What’s In It For Investors. Why should investors care about you, your product/service, your company?
    5. 5. PowerPoint vs. Word Words go on a Word document. Most powerful human sense is vision so make PPT slides visual.
    6. 6. Example of what not to do with PPT.
    7. 7. A visual way to explain previous slide. Could even opt for zero text.
    8. 8. 90% of what your brain processes is visual. Only 10% is text. Visuals are processed 60,000 times faster than text. Visual Text
    9. 9. Heat map samples showing where eyes focus most. First of four examples. Pictures
    10. 10. ACT II Focus and Simplicity
    11. 11. WIIFI
    12. 12. Vinod Khosla’s Five Second Rule: If your audience can’t figure out your slide topic in 5 seconds, you’ll lose them
    13. 13. “I cannot say that I do not disagree with you.” --Groucho Marx Did you figure out what he meant in 5 seconds or less?
    14. 14. The Microsoft logo is simple.
    15. 15. Bill Gate’s presentation slide is neither simple nor focused.
    16. 16. Neither is Steve Ballmer’s.
    17. 17. Perfect example of a clean simple logo.
    18. 18. The world’s thinnest notebook. MacBook Air. Apple’s ads are as simple and focused as their logo.
    19. 19. Simplicity and focus in a presentation. One visual and zero text..
    20. 20. ACT III Text, Charts and Graphs
    21. 21. WIIFI
    22. 22. Fonts and Sizes Text needs to be big enough to be read by the people in the farther seats from the screen. Dark sans serif text on light backgrounds is easiest to read.
    23. 23. Anticipation Space • Blah, blah, blah • Blah, blah, blah • Blah, blah, blah
    24. 24. Anticipation Space • • • • • • • • Blah, blah, blah Blah, blah, blah Blah, blah, blah Blah, blah, blah Blah, blah, blah Blah, blah, blah Blah, blah, blah Blah, blah, blah
    25. 25. Anticipation Space • Blah, blah, blah • Blah, blah, blah • Blah, blah, blah
    26. 26. No Anticipation Space • Blah, blah, blah • Blah, blah, blah • Blah, blah, blah
    27. 27. A slide title should NEVER be a full, complete, grammatically correct sentence.
    28. 28. Short Slide Titles: Powerful!
    29. 29. Sub-Bullet Points •Blah, blah, blah – Reason 1 – Reason 2 – Reason 3 Default sub-bullet point is a dash or hyphen. Investors see a minus sign. No need to subliminally tell investors you have a money-losing proposition.
    30. 30. No Sub-Bullet Points •Blah, blah, blah  Reason 1  Reason 2  Reason 3
    31. 31. Example of a terrible bar chart.
    32. 32. Example of an even worse bar chart.
    33. 33. Another example of a terrible bar chart.
    34. 34. Annual Revenues ($millions) 5.9 Product A 4.3 2.1 2.6 3.2 Product B 1.3 ’07 Product C ’08 ’09 ’10 CAGR 18.8% ’11 ’12 Example of a simple bar chart.
    35. 35. Do’s
    36. 36. Nail your opening!
    37. 37. Slides and Time: 20:00 Pitch • 10 - 12 slides maximum • 15 – 18 minutes maximum • Prepare multiple pitch decks
    38. 38. Preparation • Speech • Technology • Details
    39. 39. Storyboarding Use this technique created by Walt Disney.
    40. 40. Images and Text • Text • Text • Text On slides with text and an image, put the image on the left
    41. 41. Eye Connection SILENCE Most teachers of public speaking techniques recommend eye contact. Eye connection is far more powerful and effective.
    42. 42. Don’ts
    43. 43. X Investment Sought • Capital investment of $2,250,000:
    44. 44. X Disclaimer This Presentation (and any and all drafts and parts thereof) is/are based upon information supplied by the Company, its managing executives and its stockholders or membership shareholders (collectively “the Company” and/or “management”), and is being furnished on a confidential basis, solely for use by prospective investors in and/or potential strategic business associates of the company (collectively “recipient”). The use or distribution of this Business Plan to any other parties or for any other purposes is not authorized. Neither the company nor any of its employees, affiliates or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the information contained in this Business Plan or in any other written or oral communication transmitted or made available to a recipient. Each of such parties expressly disclaims any and all liability relating to or resulting from the use of this Business Plan or such communications by a recipient or any of its affiliates or representatives. Only those specific, express representations and warranties, if any, which may be made to a recipient in one or more definitive written agreements when, as and if executed, and subject to all such limitations and restrictions as may be specified in such definitive written agreements, may be relied on by a recipient or have any legal effect whatsoever. Material portions of the information presented in this Business Plan constitute “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “estimate”, “plan”, or “continue” or the negative form thereof or other variations thereon or comparable terminology. Such forward-looking statements represent the subjective views of the management of the company, and management’s current estimates of future performance are based on assumptions which management believes are reasonable but which may or may not prove to be correct. There can be no assurance that management’s views are accurate or that management’s estimates will be realized, and nothing contained herein is or should be relied on as a representation, warranty or promise as to the future performance or condition of the company. Industry experts may disagree with these assumptions and with management’s view of the market and the prospects of the company. The sole purpose of the Business Plan is to assist a recipient in deciding whether to proceed with further investigation but this Business Plan does not purport to contain all material information that an interested party might consider in investigating the company. A recipient should conduct his or her own independent analysis and investigation. This Business Plan shall not be construed to indicate that there has not been any change in the financial condition, business, operations, plans or other affairs of the company since the date of preparation. The company does not expect to update or otherwise revise this Plan to reflect any such changes. The recipient of this Business Plan acknowledges and agrees that: (a) all of the information contained herein or received in written or oral form from the company will be kept confidential; (b) the recipient will not reproduce this Plan, in whole or in part; (c) if the recipient does not wish to pursue this matter, it will return the Business Plan to the company as soon as practicable, together with any other material relating to the company which the recipient may have received from the company; and (d) proposed actions by the recipient which are inconsistent in any manner with the foregoing agreement will require the prior written consent of the company. THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. The company reserves the right, in its sole discretion, to reject any and all proposals made by or on behalf of any recipient, to accept any such proposal, to negotiate with one or more recipients at any time, and to enter into a definitive agreement without prior notice to other recipients. The company also reserves the right to terminate, at any time, further participation in the investigation and proposal process by, or discussions or negotiations with, any recipient without reason.
    45. 45. X
    46. 46. X
    47. 47. X
    48. 48. X
    49. 49. X Don’t Words and Phrases • • • • • “That’s a good question.” “Honestly / Truthfully…” “Think / hope / try / want” “The projections are conservative.” “If we can get just 1% of the market…”
    50. 50. Q & A
    51. 51. 7 Universal Issues • • • • • • • Competition Contingencies Costs/Pricing Growth Management Problems Timing Every question an investor will ask you will be based on one of these seven universal issues.
    52. 52. Contact Information
    53. 53. Luke Brown 310.846.5047 Office luke.brown@growthink.com linkedin.com/in/amanagementconsultant twitter.com/DrPitchDeck
    54. 54. The End

    ×