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Pitching to Investors using POEM!


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Show's how you can use the POEM framework to pitch your startup to investors. Clearly outlines what the investor is looking to hear from your pitch and then gives recommendations on how to answer during your presentation.

Published in: Investor Relations

Pitching to Investors using POEM!

  1. 1. ì   POEM®  302   TechnoVision   Pitching  POEM  to  Angel  Investors   TOMI  DAVIES  
  2. 2. Content   1.  WHY  YOU?   2.  PROPOSITION   •  The  Business  Idea   •  The  Market   •  The  Problem/Opportunity   •  The  SoluEon   •  The  Customers   •  The  CompeEEon   3.  ORGANISATION   •  StartUp  Team   •  GeJng  to  Market   4.  ECONOMICS   •  Customer  Economics   •  Financials   5.  MILESTONES   •   History   •  Current  Status   •  Key  Milestones  
  3. 3. Why  are  you  pitching?   ì  Share  your  vision  and  show  your  passion  for  the   business.     ì  Demonstrate  your  understanding  the  need  for   mentoring,  access  to  business  networks  &  funding  and   be  realisCc  about  how  it  can  help  your  startup  succeed.       ì  Illustrate  what  the  investors  ability  to  add  value  in  ways   other  than  providing  capital,  such  as  challenging  your   thinking,  enhancing  your  credibility  and  helping  you   make  contacts  in  your  market  will  mean  to  your  startup.    
  4. 4. What’s  your  POEM?   PROPOSITION   The  Business  Idea   The  Market   The  Problem/Opportunity   The  SoluCon   The  Customers   The  CompeCCon   ORGANISATION   Your  Team   GeLng  to  Market     ECONOMICS   Customer  Economics   Financials   MILESTONES   Your  History   Current  Status   Key  Milestones    
  5. 5. P:  The  Business  Idea   þ  Express  your  idea  in  one   sentence.     þ  Be  concise  and   convincing.     þ  Is  it  a  big  enough  idea  that   has  the  potenCal  to  earn   outsized  returns  and   generate  real  wealth  for   investors?   Why  should  I  be   excited  about  this   startup?  
  6. 6. P:  The  Market   þ  Describe  the  opportunity   you  have  to  create  revenues.     þ  What  are  the  margins?     þ  What’s  your  total  available   market/return?   þ  What  would  your  revenue   be  if  you  got  100  percent  of   your  target  customers   paying  what  you  expect?   Is  this  market/ opportunity  big   enough  to  yield   sustained  growth  and   market  share   leadership  for  a  highly   valued  investment?    
  7. 7. P:  The  Problem/Opportunity   þ  Describe  the  problem  you  are   solving.     þ  Show  that  you  know  the   problem  and  the  opportunity!     þ  Who  is  the  target  customer?   þ  does  he/she  have  buying  ability   and  authority?     þ  what  problem  does  the   customer  have  today?   þ  why  is  that  a  big  problem,  why   is  it  his/her  biggest  problem?     Are  there  a  significant   enough  number  of  “good”   customers  who  care   enough  about  this   problem  to  pay  for  a   soluCon?    
  8. 8. P:  The  Solution   þ  Define  and  arCculate  the   soluCon.       þ  Show  that  you  have  really   come  up  with  a  soluCon  that   is  truly  innova&ve  and  value   crea&ng.   þ  Did  you  find  it  due  to   exclusive  domain  experCse   or  intellectual  property  that   is  really  hard  for  others  to   match?   Will  the  soluCon  give  the   startup  a  compeCCve   advantage?    
  9. 9. P:  The  Customers   þ  Share  profiles  of  those  who  have   agreed  to  pay  for  the  product/ service.     þ  If  the  product/service  is  sCll  in   “beta  test,”  present  specific   customers  who  have  provided   credible  evidence  that  they  are   ready  to  buy  the  product/service   and  will  work  with  the  company   to  help  improve  it  over  Cme.   þ  Who  are  the  customers  that  are   really  waiCng  to  pay  for  this   service?   Are  there  customers  that   maer  with  a  high   willingness  to  pay?  
  10. 10. P:  The  Competition   þ  Share  specific  strengths  and   advantages  of  your  top  two   or  three  compeCtors,     þ  Create  a  matrix  of  the   compeCCon  with  the   variables  that  maer  and   present  a  one/two-­‐liner  on   each  of  their  stories   (funding,  etc.)     þ  In  one/two  sentences  why   can  you  beat  each  of  them?   How  is  the  startup   posiConed  in  the   landscape  against  all  the   other  valued  companies   playing  in  this  category?    
  11. 11. O:  Your    Team   þ  Present  profiles  of  the  top   team  members.   (Directors,  Advisors  &   Management)   þ  Include  quick  bullet  points   about  their  relevant  past.   þ  Why  are  they  the  team  to   beat  in  the  industry   sector?   Is  there  a  world-­‐class   team  in  place  with   relevant  skills  and  a   solid  track  record  to   pull  this  off?    
  12. 12. O:  Getting  to  Market   þ  Explain  how  will  you  get  in   front  of  the  customer   (direct,  indirect,  etc.)  so  that   your  product  or  service  will   sell  quickly,  easily  and  with  a   short  sales  cycle.   þ  Address  the  issue  of   accessing  the  customer.   þ  Which  channels  will  you  use   to  get  to  the  market  and   how?   What  are  the  ways  and   channels    this  startup   will  get  its  product  to   customers  profitably?  
  13. 13. E:  Customer  Economics   þ  Show  that  you  know  what  customers   pay,  what  it  costs  to  service  them,   and  what  it  costs  to  acquire  them.     þ  What  are  customer-­‐retenCon  rates   that  will  result  in  compelling  unit   economics?   þ  What  is  the  rate  of  return  on  new   customers?     þ  Can  your  startup  reach  a  broad,   diverse  customer  base  across   industries/geographies   inexpensively,  and  get  big  revenue   out  of  them?   Do  people  who  are  the   ulCmate  decision   makers  care  enough   for  the  product  or   service  (i.e.  they    are   paying)?  
  14. 14. E:  Customer  Economics   þ  Present  a  chart  outlining  financial   projecCons.     þ  On  the  horizontal  axis:  last  year,  last   two  and  next  two  quarters,  next   year,  two  years  out,  and  three  to  five   years  out.     þ  On  the  verCcal  axis:  key  metrics  such   as  number  of  customers,  big  revenue   lines,  COGS,  gross  margin,  big   expense  lines,  net  income,  cash  flow,   and  EBITDA   þ  How  much  will  you  make  for  each   dollar  invested?  Over  what  period?   Are  the  unit   economics,  gross   margins  and   profitability  believable   and  compeCCve?    
  15. 15. M:  Your  History   þ  Describe  your  history  of   achievements.     þ  Detail  what  investments   have  already  been  made   including  yours     þ  How  far  did  each   investment  go  and  what   did  you  do  with  it?   How  much  has  been   invested  and  what   difference  has   investment  in  this   team  made?    
  16. 16. M:  Your  Current  Status   þ  Present  a  factual  current   status.     þ  Detail  how  all  the  risk   idenCfied  through  research   has  been  managed  and  any   major  unsolved  technical   problems  that  may  remain.   þ  Where  are  you  today   financially?  People?   Product/Services?   Are  the  company’s   products/services   already  marketable  or  Is   there  sCll  a  lot  of   research  and   development  remaining   to  be  done?  
  17. 17. M:  Key  Milestones   þ  Share  tangible  major   milestones,  which  can  be  hit   quickly  to  prove  the  value   proposiCon  and  indicate  that   the  team  can  address  its   market,  allowing  a  big  step-­‐up   in  value  for  it  as  a  company.   þ  Show  you  know  when  to  expect   the  next  round  of  funding.   þ  How  will  the  growth  of  your   company  be  sustained?   How  much  progress   will  the  company  be   able  to  make  with  the   funding  they  are   seeking?  
  18. 18. TOMI  DAVIES   +234  817  001  2938   THANK  YOU!