VC 101 How to Pitch to VCs - Dave McClure Asher Siddiqui
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This document provides guidance on pitching startups to investors. It outlines 10 essential areas to cover in an investor pitch: 1) elevator pitch, 2) problem, 3) solution, 4) market size, 5) business model, 6) unfair advantage, 7) competitive landscape, 8) marketing plan, 9) team, and 10) funding request. The presenter then discusses each area in more detail, emphasizing the need to clearly explain problems and solutions, prove market size and traction, demonstrate advantages over competitors, and justify the requested funds and their intended use. Research, practice, and preparation are advised to deliver a successful pitch.
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VC 101 How to Pitch to VCs - Dave McClure Asher Siddiqui
- 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?
- 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
- 19. Q&A