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How to make a pitch for Angels & VCs

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How to make a pitch for Angels & VCs

  1. 1. Manish Singhal, Chief SaarthiSaarthi Integrated Consulting LLPwww.saarthiconsulting.com ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  2. 2.  What do Investors look for Making an effective pitch Business plan Softer aspects of delivering a pitch Q&A ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  3. 3.  Business (Not an idea!) The Team Risk Management Plan Clean Structure ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  4. 4. ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  5. 5. ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  6. 6. Unless the idea addresses anapparent or latent need/pain pointfor a customer, it cannot be turnedinto a business. ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  7. 7. Bus Ticketing industry in India was largely unorganizedEconomical business travel withhigh-end amenities Effective directory services ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  8. 8. There has to be a clear, simple andeasy way to monetize your service/product either directly by users orindirectly (by advertisers etc) ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  9. 9. Revolutionized the model by creating customers & consumersQuick and easy money for something withthe customer vibes with Incredible innovation by using the simple missed calls to poll / pass back information ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  10. 10. Your edge over other players inthe market or the clear &unambiguous Unique SellingProposition for your idea thatmakes a difference for thecustomers ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  11. 11. Quick, small loans, no collaterals Are they selling coffee? 30 mins or less!©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  12. 12. Too many players – no key differentiation – price war!©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  13. 13.  Is the market big enough? Is it Global? Is the idea easily scalable? Do we have the capability and resources for the same? Are we geared for scalability right from the start? ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  14. 14. Diversified into liquid soaps, soaps…Untapped market – great use oftechnology to tap the market Cooperative enterprise ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  15. 15.  Simple / Scalable Business Model focused on serving a clear & proven customer need with a Clear Differentiation in a Huge & preferably Global market space with Non-linear growth potential with an Evidence of or existing revenue streams ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  16. 16.  Skills / Domain Expertise Structure & Role Definition Ability to work together Founder’s skin in the game Ownership distribution Previous track record Access to Advisory Board / Mentors ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  17. 17.  Market Risk Customer Traction Risk Execution Risk Team Risk Exit Risk ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  18. 18.  For equity investments, private limited is the only feasible company structure  Proprietary, Partnerships, LLPs are not suitable Clean equity structure  Avoid too many minority stake holders Intellectual Property  Clear unambiguous records of IP developed in- house ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  19. 19. http://www.youtube.com/watch?v=l-8EQPpA4DM ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  20. 20.  Problem  Competition Solution  Team Business Model  Projections USP  Status & Timelines Marketing & Sales ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  21. 21. SLIDE   CONTENT   COMMENTS  Title   Organiza5on  Name,  Your   One  sentence  about  who  you   Name,  Title  &  Contact   are  (something  like  a  twiIer   Details   pitch)   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  22. 22. SLIDE   CONTENT   COMMENTS  Title   Organiza5on  Name,  Your   One  sentence  about  who  you   Name,  Title  &  Contact   are  something  like  a  twiIer   Details   pitch  Problem   Customer  Need  addressed   Clear  explana5on.  Avoid   looking  like  a  solu5on   searching  for  a  problem   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  23. 23. SLIDE   CONTENT   COMMENTS  Title   Organiza5on  Name,  Your   One  sentence  about  who  you   Name,  Title  &  Contact   are  something  like  a  twiIer   Details   pitch  Problem   Customer  Need  addressed   Clear  explana5on.  Avoid   looking  like  a  solu5on   searching  for  a  problem  Solu5on   Your  solu5on  to  the   Gist  of  how  the  need  is   customer  need   solved   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  24. 24. SLIDE   CONTENT   COMMENTS  Title   Organiza5on  Name,  Your   One  sentence  about  who  you   Name,  Title  &  Contact   are  something  like  a  twiIer   Details   pitch  Problem   Customer  Need  addressed   Clear  explana5on.  Avoid   looking  like  a  solu5on   searching  for  a  problem  Solu5on   Your  solu5on  to  the   Gist  of  how  the  need  is   customer  need   solved  Business   How  you  make  money?   Simple  explana5on.  Exis5ng  Model   Your  channels;  Margins   Customers  can  be  men5oned   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  25. 25. SLIDE   CONTENT   COMMENTS  Title   Organiza5on  Name,  Your   One  sentence  about  who  you   Name,  Title  &  Contact   are  something  like  a  twiIer   Details   pitch  Problem   Customer  Need  addressed   Clear  explana5on.  Avoid   looking  like  a  solu5on   searching  for  a  problem  Solu5on   Your  solu5on  to  the   Gist  of  how  the  need  is   customer  need   solved  Business   How  you  make  money?   Simple  explana5on.  Exis5ng  Model   Your  channels;  Margins   Customers  can  be  men5oned  USP   Explain  the  Secret  Sauce   What  makes  you  different   from  the  others   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  26. 26. SLIDE   CONTENT   COMMENTS  Mktg  &   How  will  you  reach  your   Bring  out  the  effec5veness  Sales   customer.  Marke5ng   &  cost  advantage  of  your   Leverage   GTM   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  27. 27. SLIDE   CONTENT   COMMENTS  Mktg  &   How  will  you  reach  your   Bring  out  the  effec5veness  Sales   customer.  Marke5ng   &  cost  advantage  of  your   Leverage   GTM  Compe55 Compe55ve  Landscape   Be  realis5c.  Focus  on  why  on   you  are  good;  not  why   compe55on  is  bad   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  28. 28. SLIDE   CONTENT   COMMENTS  Mktg  &   How  will  you  reach  your   Bring  out  the  effec5veness  Sales   customer.  Marke5ng   &  cost  advantage  of  your   Leverage   GTM  Compe55 Compe55ve  Landscape   Be  realis5c.  Focus  on  why  on   you  are  good;  not  why   compe55on  is  bad  Mgmt   Core  team,  Board  of   It  is  ok  not  be  complete  as  Team   Advisors,  mentors,  Investors   long  as  you  are  aware  of  it   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  29. 29. SLIDE   CONTENT   COMMENTS  Mktg  &   How  will  you  reach  your   Bring  out  the  effec5veness  Sales   customer.  Marke5ng   &  cost  advantage  of  your   Leverage   GTM  Compe55 Compe55ve  Landscape   Be  realis5c.  Focus  on  why  on   you  are  good;  not  why   compe55on  is  bad  Mgmt   Core  team,  Board  of   It  is  ok  not  be  complete  as  Team   Advisors,  mentors,  Investors   long  as  you  are  aware  of  it  Financials   3-­‐5  year  forecast.  Not  just   Clearly  state  the   revenue   assump5ons.  Be  realis5c   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  30. 30. SLIDE   CONTENT   COMMENTS  Mktg  &   How  will  you  reach  your   Bring  out  the  effec5veness  Sales   customer.  Marke5ng   &  cost  advantage  of  your   Leverage   GTM  Compe55 Compe55ve  Landscape   Be  realis5c.  Focus  on  why  on   you  are  good;  not  why   compe55on  is  bad  Mgmt   Core  team,  Board  of   It  is  ok  not  be  complete  as  Team   Advisors,  mentors,  Investors   long  as  you  are  aware  of  it  Financials   3-­‐5  year  forecast.  Not  just   Clearly  state  the   revenue   assump5ons.  Be  realis5c  Current   Accomplishments,  Plan,   Show  your  trac5on  and  bias  Status     Usage  of  Funds   towards  ac5on   ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  31. 31.  Inside Out vs Outside In Too much details  Look at it as an incremental wooing process  Just reveal enough to get them interested Too many slides (ideal 10-15 slides) Belief in projections  Instead, show a plan to get there ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  32. 32. In preparing for the battle, I have always foundthat plans are useful, but planning is indispensable Dwight D Eisenhower
  33. 33.  Detailed Pitch is pretty much a business plan  Not the other way round Do not exceed 20 pages Executive Summary is key for Investors Details on every aspect of the pitch  Key Metrics on customers, locations, resellers, partnerships etc  Assumptions driving Financial Projections  Risk Analysis ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  34. 34.  Be Yourself Humble (but proud) Show Optimism Present evidence for the optimism Respond to questions in a transparent manner Have fun! Finish early (leave time for Q&A) ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  35. 35. ?©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  
  36. 36. manish@saarthiconsulting.comwww.saarthiconsulting.com www.facebook.com/saarthiconsulting ©  Copyright  Saarthi  Integrated  Consul5ng  LLP.  All  rights  reserved  

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