8.3 the pitch.pptx

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The 10-12 essential slides... Getting ready for your 20 minutes of fame.

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8.3 the pitch.pptx

  1. 1. This presentation is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this presentation are the sole responsibility of Rick Rasmussen and do not necessarily reflect the views of USAID or the United States Government. Your Pitch   There is only one chance to make a great first impression
  2. 2. Structure •  Purpose of the pitch to stimulate interest –  not to close the deal •  Get your next meeting –  Feed into their pipeline –  You want to communicate “enough” but not everything Typical Meeting Process Time Meet and setup 5 minutes Presentation 20 minutes Discussion 30 minutes Exit and next steps 5 minutes
  3. 3. Art of Pitching •  Explain yourself in first minute –  Super cordial –  Side zero –  Elevator pitch •  Answer all questions –  Be confident –  It’s OK to delay some for later •  Always pause and let your messages sink in •  Enjoy the process
  4. 4. What do VCs hear? •  What you pitch –  Unmet need –  Market size –  Solution –  Go-to Market –  Team –  Competition –  Financial projections –  Ask •  What they hear –  Is there money to be made? –  Are these the people who will make me money? –  How much money can we make?
  5. 5. Tips on Slides •  Never read a slide –  Tell the story, your slide only reinforces what you’re saying •  Unclutter and minimize •  Delete everything you can •  Use “builds” only with busy slides •  No more than two messages per slide
  6. 6. Company  Name   Tag Line Logo Your Pitch Deck Explain what you guys do: “Slide Zero” These 30 seconds will set the tone A Great Graphic
  7. 7. Slide Zero •  Not a slide, this is how you start. •  Tell the story. Set the hook. •  Elevator pitch –  Why are you building this startup? •  History •  Your passion behind the scenes •  Why should we care? •  Captivate your audience
  8. 8. Slide Two: Team (or not) •  Second slide should be your most impressive asset – often it’s Team •  Who are you? –  Reinforce the message of passion –  Talk about the money you’ve made for others •  Introduce your team –  Only include advisors, consultants only if they make you look larger & impressive •  OK to show up with a less than perfect team –  All teams have holes –  Important issue is that you know that there are holes that you are willing to fill 8
  9. 9. Slide Three: The Pain Point. The Unmet Need     •  What problem are you solving? –  Get everyone nodding their head in agreement –  Customer examples –  Use actual names from market research •  Tell a Story
  10. 10. Slide Four: Target Market & Segmentation •  What else is happening to solve this unmet need? •  Market dynamics –  How large is the market? –  TAM, SAM, SOM –  Market type –  Incoming players
  11. 11. Slide Five: Your Solution •  How you alleviate customer pain •  Make sure that audience clearly understands –  What is your product or service –  No details: just a gist of “how” •  One slide –  Diagrams, schematics, mockup, demo –  We know you love your product. Please don’t bore us with details •  The classic mistake… –  Spending to much time on product –  Not enough time on the business proposition
  12. 12. Slide Six: Your Business Model •  How you make money –  Who pays you? –  What channels? –  What suppliers? –  What gross margins? 12
  13. 13. Slide Seven: Go-to-Market & Sales Strategy •  How will you reach your first 10/100/1000 customers •  Marketing leverage points •  Partnerships –  Those in place –  Those that are needed •  Convince audience that you have an effective go-to-market strategy
  14. 14. Slide Eight: Market Dynamics & Competition •  Complete view of competitive landscape •  Define your field of play via the axis used. –  You’re always up and to the right •  Never dismiss your competition –  Investors want to know why you are better, and why competition is not meeting needs •  Use familiar players to help position yourself 14
  15. 15. Slide Nine: Financial Projections & Key Metrics •  Five year income statement •  Key assumptions and metrics –  Customers –  Employees –  Major expenses –  … •  Be prepared to answer detailed questions 2005 2006 2007 2008 2009 Revenues - 750,000 3,600,000 8,450,000 29,250,000 Costs of sales 225,000 900,000 2,112,500 7,312,500 25% Gross Margin - 525,000 2,700,000 6,337,500 21,937,500 Research and development 840,000 960,000 1,200,000 1,400,000 3,200,000 11% Technology payment 300,000 - - - - Sales and marketing - 920,000 1,760,000 2,878,000 8,688,000 30% General and admin 620,000 660,000 1,100,000 1,600,000 2,300,000 8% Total operating expenses 1,760,000 2,540,000 4,060,000 5,878,000 14,188,000 Net income (loss) from operations (1,760,000) (2,015,000) (1,360,000) 459,500 7,749,500 Other income (expense) 200,000 300,000 420,000 100,000 50,000 Net income (loss) before taxes (1,560,000) (1,715,000) (940,000) 559,500 7,799,500 Taxes - - 139,875 1,949,875 Net income (loss) (1,560,000) (1,715,000) (940,000) 699,375 9,749,375 33%
  16. 16. Slide Ten: Status & Timeline •  Current status –  Accomplishments to date (last ~6 months) –  Timeline (major milestones over next ~18 months) –  Use of proceeds / to date •  Can be used to show key metrics –  Employee growth –  Customer or geographies growth –  Profit point etc.
  17. 17. Timeline Q2-’14Q4-’13 Q1-’14 2H-’151H-’15 1H’16 betas 10 reference accounts Or Reach profitability etc. Alpha customer acquisition Series B $7M Start company 1st Prototype Milestone #5 2H’16 Series A $2M Milestone #3 Milestone #2 Milestone #4 e.g. 1st alliance signed Seed $100K Q3-’14 Q4-’14 Product development Prod Launch Employee count 4 6 11 18 22 29 39 54
  18. 18. Calibrates everyone on expectations and sets next steps Slide Eleven: The Ask •  A pitch deck cannot crescendo without a clear ask (a.k.a. what you are looking for): -  What size investment are you looking for? -  How long does it get you? -  How will you spend it? -  What are goals before raising the next round? -  How else can the investor(s) help? -  Connections -  Syndication
  19. 19. Optional business plan: A typical outline •  Business · Company's business · Mission statement •  Products · Product description · Development schedule · Differentiation · Price point •  Market · Trends · Historic and projected size in $’s · Product match to market definition •  Distribution · Sales channels · Partnerships · Customers •  · Use of proceeds •  Competition · Competitors · Competitive advantages •  Team · Background of mgmt · Board composition •  Financials · Historic and projected P&L (1st two years by qtr) · Projected cash flow (1st 2 yrs by qtrs) · Current balance sheet · Proj headcount by function (R&D, sales, marketing, G&A) · Capitalization schedule •  Deal · Amount raised · Valuation asked You don’t have to write all of this down, just think about it

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