DMC's How to Pitch to VC's & Investors on 4 April 2019 at FAST Foundation

1. Venture Capital 101
How to Pitch Your Startup to Investors
Asher Siddiqui
Investor / Advisor / Mentor ! / " / #

2. AGENDA
1. ABOUT ME
2. PITCHING TO INVESTORS
3. Q&A / DISCUSSION

3. Asher Siddiqui
Investor / Mentor / VC / Corp Dev Exec / Entrepreneur
• ~20 years of experience
• 4 startups; 3 founded; 2 failures; 1 (small) exit
• 2 Corporate VC’s; 2 Venture Investors; 1 VC
• Invested: $7-8bn (Prior to 500)
Late Stage: led 36+ deals valued at $34bn; closed 9
Early Stage: looked at 100’s; closed 12+
• Ex-Managing Partner (+ Member of the Investment Committee) at
500 Startups.
• Ex-Head of M&A at Etisalat Group responsible for Mergers &
Acquisitions and Corporate Venture Capital.
• Extensive Board level experience.
• Advisor to Private Equity Firms, VC’s, SWF’s and Startups.
• BA in Business and an MSc in Software Development.

4. 10 Essential Areas to Cover in your Investor Pitch*
* Based on Dave McClure’s “10 Tips on How to Pitch to VC’s” (sources at the end)
D
ave’s

5. THE 10
1. Elevator Pitch
2. Problem
3. Solution
4. Market Size
5. Business Model
6. Your Unfair Advantage
7. Competitive Landscape
8. Marketing Plan
9. Team
10. The Money

6. 1. The
Elevator
Pitch
AKA: “Overview” or “Introduction”
✓ Explain what you do in SIMPLE words
✓ Ask yourself: “would a 9 year old get it?”
✓ Outline what you have achieved so far (product built? traction?)
✓ Don’t forget to make it exciting!
✘ No Jargon
✘ No Buzzwords

7. 2. The
Problem
- Focus on the SPECIFIC problem, not the solution, and the type of people who have it
- A REAL problem that people are willing to PAY to solve (painkillers not vitamins)?
- Tell a REAL story that investors can RELATE to.

8. 3. The
Solution
- How are is your solution SOLVING the problem?
- Why your solution makes customers happy? Prove it – show off your traction!
- How is your solution Better? / Different? / Niche focus?

9. Demo?
Screenshot?
Video?
Demonstrate
Traction!
Make it a
conversation.
Be Prepared!

10. 4. The
Market
TOP DOWN: How Big is the
Market?
References (Use
Credible Source(s))
BOTTOM UP: Use relevant
metrics
Know your
assumptions

11. 5. The
Business
Model
- How do you MAKE MONEY?
- What are the 1-2 MAIN sources of revenue (biggest amount or potential)
- Direct (e.g. subscription,…) or Indirect (e.g. advertising, lead generation, …)?

12. 6. Unfair
Advantage
- Do you have an unfair advantage? If so, what is it?
- Experienced Team? Early Mover? Proprietary or Superior Technology?

13. 7. The
Competition
- Who are your competitors?
- Identify ALL of your main competitors
- Demonstrate how you are “Different” or “Better”

14. 8. The
Marketing
Plan
- How do you reach your customers?
- List KEY distribution channels – have you tested them?
- Measure: 1) volume; 2) cost; and 3) conversion

15. 9. The Team
- List the founding team
- Clearly outline who does what
- Demonstrate complementary skillset
(technical, commercial, etc.)
- Highlight relevant experience / domain
expertise
- Clarify: F/T v P/T? Equity Splits?

16. 10. The
Money
- How much do you need?
- What do you need it for?
- What milestones do you expect to achieve with this capital?

17. 1. Research
2. Practice
3. Prepare

18. References
https://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-luchadores
https://www.slideshare.net/dmc500hats/zapmealscom-closing-the-gap-between-your-mouse-your-tummy-for-supernova-2007
https://www.slideshare.net/dmc500hats/10-tips-on-how-to-pitch-a-vc-fowa-london

19. Q&A