Canaan Entrepreneurs Pitch Workbook

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Canaan Entrepreneurs Pitch Workbook

  1. 1. Entrepreneur Pitch Workbook
  2. 2. Why We Created This Pitch Workbook » To provide entrepreneurs with just the actionable, tactical guidance you need to clearly communicate your business idea » To encourage you to think through the aspects of your business the same way VC’s will be assessing it . Investors » To help you sell effectively to everyone: . Employees . Customers . Other key resources » To help you avoid becoming a professional fundraiser, so you can use your time to build your business » Download this presentation to view the complete companion notes ? Copyright © 2009 & Trademark by Canaan Partners. All rights reserved. The contents of this document cannot be reproduced without prior permission of Canaan Partners. 2
  3. 3. BEFORE WE START... Our Promises to Entrepreneurs Access Need an introduction? Just ask. Value We are active board members. We are here to give you the actionable tools and resources you need to make your business a success. Operational Guidance Need help? You have our entire team to draw on, not only the Canaan partner on your board. Partnership We invest in one company per category and back that company. Intellectual Honesty and Fairness That’s the only way we do business. 3
  4. 4. BEFORE WE START... Pitch DNA Provide use cases from the Metrics perspective of a matter Mind the customer time Story + Execution Assemble Sell, don’t the right = Valuation explain team Tell a good, Pitch Perfect clear, easy-to- repeat story Focus Focus Focus! Convey a clear Showing is Cite reports to better than differentiator give credibility telling to your claims 4
  5. 5. BEFORE WE START... Get Your Bearings Practice: Nail down the ow, timing and coherence of your pitch. Also, we have partners from various of ces sit in on pitches via video conference – don’t let it throw you to have to pitch to multiple locations. Time: The typical time slot for an introductory meeting is about 1 hour (including Q&A), so make sure to keep your presentation concise and focused. Number of Slides: 12-20 slides is ideal – most of the pitches we see can be boiled down to this number of slides. Arrival: Try to arrive 10 minutes early. We’ll usually try to set up your computer before the meeting starts. Bring: Bring hard copies of the pitch because hardware failures are not uncommon. Attire: Business casual is ne. No need to wear a suit unless that’s what you are comfortable wearing. 5
  6. 6. CANAAN PITCH WORKBOOK Structure of the Pitch (12-20 pages total) EL TY ON OD NI TI  M ON TU TI SS SK TI PE OR NE O  A M TR LU M SI P E A CO OP TH IN TE SO BU » Intro: De ne the company, business, service or product in a single sentence. » Team: Identify a core group of talent that can execute on the next set of milestones. » Opportunity: Establish the need for your company’s solution and the size of the market. » Solution: Demonstrate how you will solve the problem and validate your differentiation. » Competition: Identify your competitors, validate your differentiator. » Business Model: Explain how you will generate revenue, show us what you’ve accomplished to date, and make future forecasts. » The Ask: Ask for the order and outline what you need from us to make your business a success. 6
  7. 7. CANAAN PITCH WORKBOOK Introduction (1 page) EL TY ON OD NI TI  M ON TU TI SS SK ROO TI PE OR NE ROR  A M LU NTT M SI P E A ITN CO OP TH TE SO BU INI Tell Us: » Give a brief history of the company, when it was started, how it’s been funded. » De ne the company, business or product in a single sentence. » Concisely state your core value proposition, including the target market. » What unique bene t will you provide to what customers to address what need? Key Objective: Everyone should know the basic idea and value proposition of the company. 7
  8. 8. CANAAN PITCH WORKBOOK Team (1 page) EL TY ON OD NI TI  M ON TU TI SS O SK TI PE OR R NE O  A M TR LU ANT M SI P M E A CO OP TH IN TE SO BU TEI Tell Us: » Management - crisp & relevant experience on key players . . Prior companies/startups . Educational&backgrounds Prior exits IPOs » Board of Directors » Board of Advisors (if applicable) » Key future hires Key Objective: Make us con dent that there is a core group that believes in the company and can execute the next set of milestones. 8
  9. 9. CANAAN PITCH WORKBOOK Opportunity (2-5 pages) EL Y ON Y OD ITT I TI NN  M ON TUU TI SS RRO SK T TI PE PR NE O  A OO M TR NT LU M SI E A CO OP TH IP IN TE SO BU OP Tell Us: » State the problem; describe the pain. » Why does the problem persist? . . De ne recent trends that make your solution possible. (Clear) Problem . How areitwe at an inaddressed? now? is currently + (Large) Market Why ection point » Identify the market size. = » How does this market change and grow over time? (Great) Opportunity Key Objective: Establish the need for your company’s solution and convince us that solving the problem is worth the effort. 9
  10. 10. CANAAN PITCH WORKBOOK Solution (2-6 pages) EL TY ON OD NI TI  M ON TU N TI SS TIO SK IO PE OR UTR NE O  A M NT TR LLU M SI P E A CO OP TH IN TE OO BU SSI Tell Us: » Demonstrate your solution. » Validate your differentiation. » Explain your technology / IP. » How is the new solution better? Key Objective: Help us understand how you will solve the problem. 10
  11. 11. CANAAN PITCH WORKBOOK Competition (1-2 pages) EL TY ON IN OD NI ITO  M TTI ON TU SS ETO SK PEI TI OR OM R NE O  A M TR T LU CMP SI P E A IN OP TH IN TE SO BU CO Tell Us: » Competitive matrix with: . . Strengths & weaknesses . Metrics of competitors Investors » Where do you play in the environment outlined above? » How does this market change over time? Key Objective: Help us understand who you compete with, why you have a better product or solution and how you can win. 11
  12. 12. CANAAN PITCH WORKBOOK Business Model (2-4 pages) EL L TY DE ON OD NI TI SM ON TU TI S  ESO SK ES TI PE OR IN R O  A IN M TR SS T LU M P E A N CO OP TH IN TE SO BU BUI Tell Us: » How will you make money? . . Revenueaverage& metricssize, lifetime value, churn, views, uniques, registered users, sub base, etc. model . Pricing, distribution model, customer pipeline, wins and metrics account Sales & » What milestones are you going to realistically hit with the new capital? Key Objective: Tell us how you will generate revenue; show us what you will accomplish in a given period of time. 12
  13. 13. CANAAN PITCH WORKBOOK The Ask (1 page) EL TY ON OD NI TI  M ON TU TI SS RO KK TI PE AAS OR NE O  S M E ET TR LU M SI P A N CO OP TH IN TE SO BU THI Tell Us: » Financials, including prior backers, date(s) and amount of investments » Valuation expectations » Amount you are looking to raise » Milestones you will hit with the new capital » Your burn rate » How much runway will the new money buy (pro forma burn) » Post-money of the last round Key Objective: Outline what you need from us to make your business a success and what you are looking for in a venture capital partner. 13
  14. 14. CANAAN PITCH WORKBOOK What Happens Next ? EL TY ON OD NI TI  M ON TU TI SS SK TI PE OR NE O  A M TR LU M SI P E A CO OP TH IN TE SO BU The Black Box Explained After the pitch, we discuss the merits and potential challenges in Introductory Meeting the business and determine whether to pursue a second meeting. Conduct our own assessment of the marketplace, the effectiveness Due Diligence + 2nd Meeting of your solution and the merits of your team. Once the evaluation process is complete, your team will be invited Present to Global Partnership to make a nal presentation to the global partnership. Typically, the entire investment process takes anywhere from 2-6 Term Sheet Negotiation weeks, but can vary depending on the circumstances. 14
  15. 15. CANAAN PITCH WORKBOOK Workbook STRUCTURE KEY OBJECTIVE YOUR ANSWER De ne the company, business, service or Intro product in a single sentence. Identify a core group of talent that can Team execute on the next set of milestones. Establish the need for your company’s Opportunity solution and the size of the market. Demonstrate how you will solve the Solution problem and validate your differentiation. Identify your competitors, validate your Competition differentiator. Explain how you will generate revenue, show Biz Model us what you’ve accomplished to date and make future forecasts. Ask for the order and outline what you need The Ask from us to make your business a success. 15
  16. 16. WORKBOOK Good Luck! 27
  17. 17. big ideas@canaan.com Find us and our portfolio at: www.canaan.com UNITED STATES | INDIA | ISRAEL Copyright © 2009 & Trademark by Canaan Partners. All rights reserved. The contents of this document cannot be reproduced without prior permission of Canaan Partners.

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