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Pitch Training by Henrik Scheel

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1-Day workshop on pitching and fundraising by Henrik Scheel

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Pitch Training by Henrik Scheel

  1. 1. Pitching and Growth Hacking The Silicon Valley way Henrik Scheel Founder & CEO Henrik@startupxp.com
  2. 2. Entrepreneur DK USA
  3. 3. Why Silicon Valley rocks.. • Mindset/culture/people • Talent (2M tech workers) • Process • Capital + experience • Nature + weather 🤙
  4. 4. Why Silicon Valley rocks.. • Mindset/culture/people • Talent (2M tech workers) • Process • Capital + experience • Nature + weather Why Silicon Valley sucks.. • Stupid expensive! • Living costs + Salaries • Talent retention • Monoculture 👎 🤙
  5. 5. is Silicon Valley dead?
  6. 6. The PayPal Mafia
  7. 7. WHO ARE YOU?
  8. 8. SME VS Startup Revenue/ cash flow/ jobs Revenue/ cash flow/ jobs High growth StartupSmall/medium Business (SME) What about you?
  9. 9. Topics we can dive into.. Fundraising basics (types of funding, investors, amounts, valuation, terms, equity distribution, cap table) The investor meeting (who, what, how) Business Model Innovation Startup Metrics Market sizing (TAM, SAM, SOM) User Personas The ultimate pitch deck Startup lingo/terminology MPV – rapid launch Customer segmentation Customer interviewing Product-market fit Presentation techniques (story, body, voice) Growth Hacking Running experiments (A/B testing) Elevator pitch
  10. 10. Fundraising basics (types of funding, investors, amounts, valuation, terms, equity distribution, cap table) The investor meeting (who, what, how) Business Model Innovation Startup Metrics Market sizing (TAM, SAM, SOM) User Personas The ultimate pitch deck Startup lingo/terminology MPV – rapid launch Customer segmentation Customer interviewing Product-market fit Presentation techniques (story, body, voice) Growth Hacking Running experiments (A/B testing) Elevator pitch Topics we can dive into..
  11. 11. PITCHING
  12. 12. Entrepreneurs are always pitching
  13. 13. 30 sec Elevator pitch 3-5 min Show Pitch 15-20 min Investor Pitch
  14. 14. What do investors care about?
  15. 15. A good pitch can communicate value in 2-3 minutes Reid Hoffman Goal is to build CREDIBILITY so investors will trust you with their money
  16. 16. Integrity Passion Experience Knowledge Skills Leadership Commitment Vision Realism Coachable 10 important traits
  17. 17. The Power Law of Investment Returns 3% of the VC firms generate 95% of the industry’s returns
  18. 18. StartupExperience.com/PITCH
  19. 19. YOUR ELEVATOR PITCH Be prepared with a punchy, memorable statement about yourself
  20. 20. What makes you smile about your business? What are you most proud of? What is the coolest thing about the work you're doing?
  21. 21. Pitch Examples
  22. 22. Problem Solution Market Business TEAM
  23. 23. My company, (Company name) is developing (a defined offering) to help (a targeted audience) (solve a problem) (with secret sauce) Mad Libs for Pitching
  24. 24. Shut up and listen… Don’t defend yourself – just listen Write down the insights you get… Feedback is a gift!
  25. 25. Pitch training 1.0 Rules of engagement: 4 min + P2P feedback • Who is the user? • What problem are you solving? • What’s your solution? • How big is the market? • How’re you making money? • Who are you (team)? • The ask?
  26. 26. Lunch Time + Business Card Challenge
  27. 27. SMILE J And be positive!
  28. 28. THE HANDSHAKE Clean hands Firm and confident Eye contact
  29. 29. Have a positive self-image
  30. 30. Anxiety is a normal response to a threat
  31. 31. What happens when we get anxious? • Wet-Dry, Dry-Wet (plumbing reversal) • Shallow breathing • Can’t focus
  32. 32. The audience wants you to succeed!
  33. 33. Visualization exercise
  34. 34. What affects the audience? 7 55 38 Words (%) Voice (%) Non Verbal (%)
  35. 35. Content VS Delivery?
  36. 36. Tips Great Posture Fewer slides & words Control your hands Move but don’t pace Smile
  37. 37. Be visual Don’t talk to your slides
  38. 38. Professional Business Pitch (to investors) Slide 1: Vision / Elevator Pitch Slide 2: The Problem Slide 3: Product / Service Slide 4: Market Opportunity Slide 5: Traction / Validation Slide 6: Revenue Model Slide 7: Competition Slide 8: Marketing & Growth strategy Slide 9: Team Slide 10: Financials Slide 11: Investment ‘Ask’ / milestones
  39. 39. Pitch training 1.0 Rules of engagement: 4 min + P2P feedback • Who is the user? • What problem are you solving? • What’s your solution? • How big is the market? • How’re you making money? • Who are you (team)? • The ask?
  40. 40. Problem Solution Market Business The pitch formula TEAM
  41. 41. Problem Description Pains Trends Problem Solution Market Business
  42. 42. PROBLEM Fall in love with the PROBLEM ..Not your solution!!
  43. 43. People hate pitches but they love stories
  44. 44. Solution Value Proposition (USP) Demo Benefits Problem Solution Market Business Showcase why your solution is at least 10X better than all of the alternatives!
  45. 45. Role-play drawing Software demo Video DEMO/prototype
  46. 46. A thousand songs in your pocket… Golden rule: Features tell, Benefits sell!
  47. 47. Market Target Size Advantages Problem Solution Market Business
  48. 48. alan
  49. 49. Online Takeout Orders: Market $ize Top Down $511 Billion spent dining out annually • source: National Restaurant Association, 2006 (http://www.restaurant.org/) Bottom up: 100M people eat out every day Today ~4% of meals ordered online (= 4M/day) In 5 years 20% of meals ordered online (=20M/day) Average takeout order cost is $12 Available Total Market Size: • today = ~$50M daily, ~$20B annually • in future = $250M daily, $100B annually
  50. 50. Revenue Model Make it simple – and focus on main revenue stream(s)
  51. 51. Milestones Highlight you achievements Show future milestones How will the money be used….
  52. 52. THE RIGHT TEAM
  53. 53. Core skills of team members Key accomplishments (previous successes, work experience at reputable companies) Experience working together Credible advisors/investors Build credibility Team
  54. 54. Geeks with deep technical background Entrepreneurs who have sold companies Sales/Marketing who Make it Rain Also Identify: Key Hires you Need but *Don’t* Have, and… … you’ve got candidates lined up in those areas ... ready to hire as soon as you close funding … or at least job descriptions / est. salary Team
  55. 55. The founder of Starbucks - Howard Schultz was rejected 200+ times when he was pitching Starbucks … and he is a master marketer VCs hear 500-1000 pitches per year and invest in about 1% of those companies!
  56. 56. Pitch training 1.0 Rules of engagement: 4 min + P2P feedback • Who is the user? • What problem are you solving? • What’s your solution? • How big is the market? • How’re you making money? • Who are you (team)? • The ask?
  57. 57. Fundraising
  58. 58. Investment rounds Pre-Seed/Family round/Accelerator (~$20-500K used for building team and initial product/prototype) Seed round (~$500-6M used for building product, establishing product- market fit and early revenue) Series A (~6M-$25M used to scale customer acquisition and revenue) Series B, C, D, IPO/EXIT Raise enough for 3 experiments / 18 months runway
  59. 59. Pre/Post-money valuation
  60. 60. Pre/Post-money valuation
  61. 61. What questions can you expect? Company Questions: • What’s the history of the company? When did you start operating? • Why did you create this company? • How did you meet/find your team members? Why are you / team right people to execute this business? • Target market size? Minimum market penetration needed for success? • What’s your traction? (MVP done?, user/revenue growth?, key milestones?) • Why will you fail? Biggest challenges? • Why will you succeed? Unfair / sustainable advantages? • Are you a starter or finisher? • Show me how you achieve the magic ratio: ARPU / Life-time Value > Cost to Acquire / Maintain a Customer
  62. 62. What questions can you expect? Capital Raising Questions: • What’s the capital raising history of the company? How much / what terms? • When did you start raising this round? What investors have committed? • Have you invested any of your money? • Are your advisors investing? Why not? • What’s your valuation? Terms? • How much cash is in the bank? What’s your monthly burn rate (expenses not covered by operating cash flow from revenues)? = Runway (Cash / Burn Rate) • Use of proceeds and expected results/milestones?
  63. 63. Surprising questions #1: Who believes in you and how can I get in touch with them? #2: What entrepreneurs do you admire and why? #3: How do you track trends in your market? #4: Can you tell me a story about a customer using your product? #5: How do you know how much money you need and could you scale your business with less? #6: How can I connect with 5 customers who have used your product or service? #7: What will your market look like in five years as a result of using your product or service? #8: What mistakes have you made thus far in this business and what have you learned? #9: What if three or five years down the road we think you’re not the right person to continue running this company—how will you address that? #10: Have you ever been fired from a job? Tell us about it.
  64. 64. How to send e-mail introductions
  65. 65. How to send e-mail introductions If you are asking for an intro.. • Ask nicely (it’s a big favor) • Explain why this is a valuable intro for both parties • Make it easy (write the e-mail intro) When you receive the intro.. • Follow up the same day • Say thanks to the sender and introduce yourself • Move sender to BCC • Later: send the sender another thank you e-mail with details on how it went.
  66. 66. How to send e-mail introductions If you get asked to make an intro • Ask why this intro is valuable for both parties • Ask your other contact if it is ok that you send the intro and which e-mail he/she prefers • Send the intro introducing both parties and include why you think both people will benefit from the introduction • Thank your contact for taking the time to connect with your friend.
  67. 67. Roles and responsibilities Equity ownership and vesting IP assignment
  68. 68. GOOD FOUNDERS VEST!
  69. 69. “Whether you think you can, or you think you can’t - you’re right!” Henry Ford Henrik Scheel henrik@startupxp.com Linkedin.com/in/henrikscheel Startupexperience.com/resources Startupexperience.com/pitch Good luck with your entrepreneurial journey!

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