I.Match Panel How to Pitch Angel Investors


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How to select Angel Investors and effectively pitch to them

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I.Match Panel How to Pitch Angel Investors

  1. 1. i.MATCH Effective Pitching to Angels & Selecting Angel Investors Aydin Senkut Founder & Managing Director twitter.com/asenkut www.felicisvc.com © 2009 Felicis Ventures LLC
  2. 2. Aydin Senkut – Felicis Ventures Bringing operational excellence & scaling experience to funding start-ups   First Google Product Manager & Head of International Sales   Angel Investor with 50+ investments, 11 exits   Among the top 25 Tech Angels according to Businessweek (March 8, 2010) Acquired by Acquired by IAC AT&T Mixer Labs Acquired by Acquired by Intuit Twitter Acquired by Acquired by Google Shanda Games Acquired by Acquired by Google Microsoft © 2009 Felicis Ventures LLC
  3. 3. Angel Investors in VC Ecosystem Idea Start up Intro Rollout Growth Expansion Maturity Inv. Banks / PE $10MM - 100MM+ Grants of up to $1MM Acquisition Stage / IPO / Mergers Revenue / EBITDA Angel Investors $10k – $1MM Investment Banks & PE Funds Venture Capital Friends, Family or Funds Grants Individual Angels / Groups / Boutique VCs © 2009 Felicis Ventures LLC
  4. 4. Finding Angel Investors …with a “POSITIVE BIAS” towards your company Timing Areas of Interest Strong Connection To YOU or Your Domain Referral Source Domain Expertise © 2009 Felicis Ventures LLC
  5. 5. How to Select Angels ? Different Types of Angels “Hobby” “Money” “Expert” Family Professional & Friends © 2009 Felicis Ventures LLC
  6. 6. Targeting the Right Angels Consider your stage and capital needs   Angels or Angel Syndicates most effective when round is less than $ 1M Lead / Anchor Investor   Find the lead investor (usually financial lead as well)   Help determine the terms / watch the deal Angel Syndicate   Make sure targeted [angel] investors are:   Active   Have domain expertise   Are interested in your field / company © 2009 Felicis Ventures LLC
  7. 7. Getting to First Meeting Become a “known quantity” – Referral is key Introduction / Referral   Sending “Cold” emails are likely to be unproductive   Referral from a “known or trusted” source is best (university, previous company, lawyer, etc)   Meet target investors in action (ie Conferences, Events, Activities) Follow up Material / What to Send   Brief summary in email (shorter the better – ideally one paragraph)   Executive summary (1 page)   PowerPoint Deck (shorter the better) © 2009 Felicis Ventures LLC
  8. 8. The Pitch – Part I For Successful Pitch, Minimize the 5 “Perceived Risks” 1. Funding Risk   How much of the round is spoken for ? Who else is investing ? 2. Team Risk   Is this the right team to do it ? Who is missing ? What is the track record ? 3. Execution Risk   Confidence in the team’s ability to execute the vision, on plan, on time, efficiently 4. Market Risk   Is this the right market ? Does the product fit a major pain point ? Is it the right time ? 5. Exit Risk   Potential for this company to be acquired or an IPO © 2009 Felicis Ventures LLC
  9. 9. The Pitch – Part II Main Goal of Meeting 1 is: Get to YES or Meeting 2 Suggested Contents / Outline for a Good Pitch – Top 10 Points to cover*: 1.  What do you do? What customer need do you address? (business card rule) 2.  Who is on your team? How are they relevant? Who is missing? 3.  Introduce the product and the benefits 4.  How big is your market? Why is the market ready now? 5.  What is your go to market strategy? 6.  Where are you now? How much traction do you have? 7.  How do you grow fast ? What is your vision to become leader in your space ? 8.  What is the [realistic] competitive landscape? 9.  What will you use the funds for ? (Add financials & projections if you have) 10.  The Ask – how much do you want and where will it take you? Appendix: Anything you think will come up in questions *Thanks to Rebecca Lynn from Morganthaler Ventures for her input © 2009 Felicis Ventures LLC
  10. 10. Valuation It’s Cyclical and Depends on Supply & Demand VALUATION OF SEED ROUNDS* All amounts in millions *Source: NVCA © 2009 Felicis Ventures LLC
  11. 11. Tips to Remember DOs and DON’Ts of Successful Pitches DON’T DO Make it a monologue Your Homework Underestimate Risks Stand Out Miss Facts ASK for Action © 2009 Felicis Ventures LLC
  12. 12. Aydin Senkut twitter.com/asenkut www.felicisvc.com Confidential – Copyright Felicis Ventures LLC © 2009 Felicis Ventures LLC