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Matt Wise, CEO of HelloWorld – give a 60-second bio, specifically referencing your experience with acquisitions.
Detroit-based mobile engagement platform HelloWorld (formerly ePrize) has been involved in 6 acquisitions in the past 2 years -- buying 4 smaller startups, being acquired themselves by a PE firm, and then spinning off an internal division into its own company.
Gabe Karp, Partner at Detroit Venture Partners - give a 60-second bio, specifically referencing your experience with acquisitions.
Detroit Venture Partners has seeded dozens of early stage tech companies to help rebuild Detroit. Led efforts on multiple acquisitions, venture financings, credit facilities, and ultimately the sale of the company to a large private equity firm.
In this presentation, we will provide insight on both ends of the acquisition process, from seeking out qualified startup candidates to making your company look appealing for a buy. They’ll reveal 5 essential tips to consider during this grueling process, highlighting ways to ensure a seamless transition by mitigating potential pitfalls.
Copy:
We’re looking at company AND pedigree
We look for good BS on your resume
Smart leadership
We’ll take a great team over a great product any day
Great ideas actually are quite common. The rarity is the ability to execute. We look for leader/team who can blast through obstacles and get shit done
Many startups will hit an inflection point as they begin to stretch beyond the skill level of its entrepreneurial founders. Failing to recognize that you’ve hit an inflection point (or failing to take action when you do recognize) is one of the more common reasons why startups fail.
You need to be able to speak to the financial community; ideally, you have someone on your team who’s done it before
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You need an elevator pitch; must be quickly understood
[Insert example of pitches that go on for 30 minutes; at the end, you’re still confused]
Your business prop has to be 9-year-old simple
Don’t explain what you do, show us your passion!
I’ve sat through many pitches where 20 minutes in none of us know what the company actually does
Copy:
Growth rate? Who cares!
Margins and profitability
Market demand and future potential
Three factors: stratospheric growth rate, less about profit, less about perception, hyper growth phase. Groupons of the world, stratospheric, Amazon; then companies with great margins and profitability (gross margins) like Marketo still lose money; future potential. What is the product and relative size of market.
Don’t say things like, “this is going to be bigger than the internet.” That’s unappealing
If you’ve got a co-founder who’s abrasive, leave him back at the office.
Copy:
Be buttoned up
Prove your point with metrics
Show that company is run by measurement
Spreadsheet jockeys - instills confidence
Demonstrate deep understanding of your industry– how it’s evolved to current state and where it’s going
Understand your competition (If I know about a competitor of yours that you don’t, you don’t have your shit together)
Have compelling reasons why you’ll defeat them
Copy:
May be a cliché but…network! Everyone knows someone.
Get an investment banker; get on the radar
Lay the seeds long in advance.
Sell the category, say what you'll do in the category, report back on a regular frequency, show how you’re slaying it.
Pitch what you plan to do and then check in months later to say, “look what we did”