Startup Weekend Brussels 2014 - How to pitch - Bruno Wattenbergh

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Startup Weekend Brussels 2014 - "How to pitch" workshop by Bruno Wattenbergh


Startup Weekend is the largest community of passionate entrepreneurs with over 1800 past events in 500 cities around the world. If you want to put yourself in the shoes of an entrepreneur, join 300.000 starters and register now for the best weekend of your life. For the 10th Belgian edition, they are back in Brussels !

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  • Churchill never said that. “A good speech should be like a woman's skirt; long enough to cover the subject and short enough to create interest.” ― Winston S. Churchill
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Startup Weekend Brussels 2014 - How to pitch - Bruno Wattenbergh

  1. 1. 1WE STARTUP Brussels
  2. 2. 1. What is a pitch ? WE STARTUP Brussels
  3. 3. A short presentation … WE STARTUP Brussels
  4. 4. Dedicated to one or a limiter number of person … WE STARTUP Brussels
  5. 5. An entrepreneur pitch all the time … WE STARTUP Brussels
  6. 6. 2. What are the purposeS of the pitch ? WE STARTUP Brussels
  7. 7. Try to convince somebody you know to do something very specific … WE STARTUP Brussels
  8. 8. You are supposed to know the person …  the pitch is supposed to be adapted to this person … WE STARTUP Brussels
  9. 9. You know the result immediately … WE STARTUP Brussels
  10. 10. Purposes of the pitch  internal ? WE STARTUP Brussels
  11. 11. 3. Does it makes the difference ? WE STARTUP Brussels
  12. 12. Does it makes the difference ? YES ! (The Impact of Entrepreneurs’ Investor Forum Pitch Presentation Skills on Business Angels’ Initial Screening Investment Decisions by Colin Clark - Marketing Department, Burgundy School of Business - École Supérieure de Commerce de Dijon-Bourgogne, BP 50608 – 21006 Dijon cedex France) The business angels’ post-presentation level of investor interest was significantly related to their evaluations of the quality and content of the entrepreneurs’ presentations: The higher an entrepreneur’s overall presentation score, the greater the likelihood that the business angels would be interested in pursuing that entrepreneur’s investment opportunity. Presentational factors also tended to have the highest level of influence on both the overall score an entrepreneur received as well as on business angels’ level of investor interest. However, the business angels appeared to be unaware of or were reluctant to acknowledge the influence presentational factors had on their investment-related decisions: The reasons they cited for their post- presentation intentions were focused firmly on non-presentational criteria. More generally, however, comments about the entrepreneurs’ presentations centred on presentational issues relating to clarity/understandability and structure, the level of information that was provided, the personal characteristics of the entrepreneur, and the entrepreneurs’ ability to sell themselves and their investment opportunity. WE STARTUP Brussels
  13. 13. To sell something or to attract finance ? • Both … ! • Almost the same structure … ! • Not exactly the same composition / objective ... • The same introduction  hook • The same conclusion  appointment ! WE STARTUP Brussels
  14. 14. To pitch : what does this mean ? • To tell a story to convince somebody to do something … WE STARTUP Brussels
  15. 15. Facts vs. Stories strategy • Stories, on the other hand, encapsulate information, knowledge, context and emotion into one compact package. • This is a right brain activity. WE STARTUP Brussels
  16. 16. Outcome of a successful pitch ? • Prepare the next stage  appointment  On – Off (good control !) • Create in the mind of the interlocutor a positive mindset for future actions / success ! • Avoid useless appointments  are you in the range ($), scope (sector, stage, …) of the investor … or for a sale pitch  do we have some potential interest to make business together ? WE STARTUP Brussels
  17. 17. Duration of the Pitch ? • 2 minutes ? • 4 minutes ? • 10 minutes ? • Q&A ? • Depends on the stage of the relationship … ? • Depends on the country … ? • Depends on the place … ? WE STARTUP Brussels
  18. 18. WE STARTUP Brussels 8 key steps to succeed your (elevator) pitch ? 8 key sentences !
  19. 19. WE STARTUP Brussels
  20. 20. WE STARTUP Brussels 1st STEP : “A good Hook”  Ask a closed question  Known answer !  Clear customer pain  Data ?
  21. 21. WE STARTUP Brussels 1st STEP : “A good Hook”  Get connected - Attract attention  Highlight the problem, pain, need that your enterprise wants to solve or meet  make it clear, obvious.  Your interlocutor will project himself in the problem and be ready to understand the value of your proposition
  22. 22. WE STARTUP Brussels
  23. 23. WE STARTUP Brussels 2nd STEP : “Your SOLUTION” « The SOLUTION ! » How you can solve this very specirfic customer pain ? A G.O.U.S.P PPASX ?
  24. 24. WE STARTUP Brussels 2nd STEP : “Your SOLUTION”  What is your product, service  description based on the pain highlighted in the hook.  Describe briefly what exactly you’ll sell  risk / value  No technical details !  The value must be understood  Quantify ?
  25. 25. WE STARTUP Brussels
  26. 26. WE STARTUP Brussels 3rd STEP : “Who’s your Customer” « The chosen Customer ! » Market vertical chosen ! Select and describe a vertical … and explain why !
  27. 27. WE STARTUP Brussels 3rd STEP : “Who’s your Customer”  Who will be your customers ?  What is their activity sector or industy ?  Some indications on the market size  Known market – if possible – a market test  If possible show letters of intent
  28. 28. 4th STEP : “Where is the $$$$$$$$” « How will you make money ? » Business Model ? WE STARTUP Brussels  Briefly describe the business model chosen  How will you deliver the value to the customer ?  How will you capture the value from the customer ?  Recurrent revenue channel ?  Distribution, Sales, Test-case, … ?
  29. 29. 5th STEP : “Who are you ?” « You & your team ? » Explain who you are … Expertise  Complementary team WE STARTUP Brussels  A lonely wolf … or a team ?  An inventor, a manager, entrepreneur ?  Track records  Explain why you and your team are capable of solving the announced problem and why you deserve to be paid for that ?
  30. 30. 6th STEP : “Comparative Advantage ?” « What is you U.C.A.? » Explain why you are ≠ Explain why it is a competitive advantage WE STARTUP Brussels  You not a dreamer … you know what your are talking about … you know the value for the customer  You know the customer & the competition  Metrics ?  Take the angle of talking about the comparative assets of your project, how you distinguish yourself from the existing competition : distribution, partnership, technology, …
  31. 31. 7th STEP : “Competition?” « Who are the Competitors ? » It there are competitors … great ! … There is a market ! WE STARTUP Brussels What are your main competitors (very figurative for the investor) ? Why ? What is their market share ? Competition is a good thing. It means there is a market! Metrics
  32. 32. 8th STEP : “Closing” « Follow-up Action ? » Goal of the pitch is to induce a follow-up ! WE STARTUP Brussels Explain what you expect from your interlocutor … What is the next step for you ? How to induce a follow-up concretely ?
  33. 33. A pitch is NOT … • A technical description of your product or technology … • A childish attempt to persuade … • A process of seduction … • An abstract thing … • Is rather convincing than persuasive  respect • …WE STARTUP Brussels
  34. 34. Some key interdependencies with the BP ? 1. Customer Pain 2. Value proposition 3. Quantifying value proposition 4. Decision making unit (DMU) 5. Identification of targets (market vertical) 6. Finance 7. Pitch and … or BP ? WE STARTUP Brussels
  35. 35. WE STARTUP Brussels The Fault ?
  36. 36. You’ll head of a crash if … ? 1. Talk about technology 2. Talk about yourself 3. Lack empathy 4. Do not prepare enough 5. Don’t know the interlocutor 6. Waste time  disrespectful 7. Lack of confidence 8. Fishing expedition WE STARTUP Brussels
  37. 37. Fault 1 : Too much Technology ? ☹ Don’t talk too much about technology ☹ Technology is not a the means to an end ! ☹ Technology is a way to create value ☹ We are talking about a venture, not a research project  Mention technology once but be ready to answer question or to offer a demo WE STARTUP Brussels
  38. 38. Fault 2 : Talking about yourself ? ☹ Don’t talk about yourself all the time ☹ Pitch must be focused on them, not on you ☹ Dialogue must be focused on their interest for the venture  You = Team + stock of competencies and skills, stock of experience, … WE STARTUP Brussels
  39. 39. Fault 3 : Lack of Empathy ? ☹ Don’t be self-centered ☹ Investors & clients do business with people they have a relation with … People think they have such a relation when they feel they are understood (need, situation, pro / private / CP) ☹ Listen and keep your concentration on their questions ? ☹ Too much preparation on the form (2muchtraining) ? WE STARTUP Brussels
  40. 40. Fault 4 : Lack of preparation ? ☹ Vague … no logic … no red line ☹ Lack of knowledge about the product, … or the customer pain ☹ Unable to play with the VP ☹ Don’t know the target or less knowledge of the market than the target ☹ No BM ☹ Basic questions without answer ☹ Nothing to ask WE STARTUP Brussels
  41. 41. Fault 5 : Don’t know the target ? ☹ Lack of respect ☹ Lack of preparation ☹ Unable to adapt the Customer Pain ☹ Impossible to know what to ask ☹ … WE STARTUP Brussels
  42. 42. Fault 6 : Too long ? ☹ Lack of respect ☹ Lack of empathy ☹ Lack of preparation ☹ Unclear Value creation and/or Business model too complex ☹ … WE STARTUP Brussels
  43. 43. Fault 7 : Lack of confidence ? ☹ Lack of preparation ? ☹ Lack of knowledge of the market ? ☹ Weak BM … ☹ Don’t know what you want ? WE STARTUP Brussels
  44. 44. Fault 8 : Fishing expedition ? ☹ No clear objectives ☹ Nothing to ask ☹ Don’t do that with Mr BIG ! ☹ Change you training program ! WE STARTUP Brussels
  45. 45. Watch the technical problem !!!!! WE STARTUP Brussels Prezi ?
  46. 46. What to do if my model is complex ? Try to use mind mapping Tell a nice interesting story  Think about the media tools … WE STARTUP Brussels
  47. 47. WE STARTUP Brussels
  48. 48. 6 principles to let your pitch « stick » • SUCCES – S imple – U nexpected – C oncrete – C credible – E motional – S tories WE STARTUP Brussels
  49. 49. One book to buy … WE STARTUP Brussels
  50. 50. WE STARTUP Brussels I have only made this letter rather long because I have not had time to make it shorter. Blaise Pascal
  51. 51. Somes movies ? The classical video on Elevator Pitch (380.000 views) : http://www.youtube.com/watch?v=Tq0tan49rmc Some examples + feed-back from judges http://www.youtube.com/watch?v=vAvErchnM_w A finalist at the 100K$ BP Competition at MIT Http://www.Youtube.Com/watch?V=-ddsp71oino&feature=related 10 things to know when you pitch a VC – HBR http://www.youtube.com/watch?v=lzDBrMisLm0&playnext=1&list=PL836838DACEB391 Some good advices … http://www.youtube.com/watch?v=q0EWScOXFpA&playnext=1&list=PLFC6C881B6B31 Some students pitching http://www.youtube.com/watch?v=Bh5TA6S4X24&feature=relatedWE STARTUP Brussels
  52. 52. Some books ? • Elevator Pitch Essentials: How to Get Your Point Across in Two Minutes or Less  The 9C’s • The Art of the Start: The Time-Tested, Battle- Hardened Guide for Anyone Starting Anything • Made to stick or the Art ofWE STARTUP Brussels
  53. 53. Reminder : Some key interdependencies ? 1. Customer Pain 2. Value proposition 3. Quantifying value proposition 4. Decision making unit (DMU) 5. Identification of targets (market vertical) 6. FinanceWE STARTUP Brussels
  54. 54. 1. Customer Pain ? Notion of customer pain Identifying current pain Developing latent pain Quantifying the pain Understand needs, situation, vision, constraints, … Create relationship when you sellWE STARTUP Brussels
  55. 55. 1. Customer Pain (2) ? Market segmentation indispensable Choose a vertical market subset In relation to your offer (resources & competencies) In relation to the market interest (customer pain, tendency, wave, …) Do some questioning WE STARTUP Brussels
  56. 56. 2. Value Proposition ? • A value proposition is generally a clear and succinct statement (e.g., 2-4 sentences) that outlines to potential clients and stakeholders a company's (or individual's or group's) unique value-creating features. • A value proposition is a clear statement of the tangible results a customer gets from using your products or services. • A value proposition is an offer to some entity or target in which they (the possessor) get more than they give up (merit or utility), as perceived by them. • A value proposition is the basic reasoning for why people should consider your product or service. WE STARTUP Brussels
  57. 57. 2. Value Proposition (2) ? Some questions / issues about the VP ?  P.P.A.S.X. ?  Product / service / Levitt ?  Business model ?  Pay attention to Swiss knife syndrome !  Make choices !!!!!WE STARTUP Brussels
  58. 58. 2. Value Proposition (3) ? P.P.A.S.X. ?  Product  characteristics ?  Price  more than costs only strategy ?  Access  distribution  PoC with client / CR ?  Service  Levitt / whole product ?  eXperience  feelings, emotions ?WE STARTUP Brussels
  59. 59. 2. Value Proposition (4) ? The challenge of the Value Proposition ?  Identify & compose the characteristics …  … identified clients are ready to pay for …  … with a clear differentiation …  … while making a minimum / maximum profit …  … being able to present it attractively / valueWE STARTUP Brussels
  60. 60. 2. Value Proposition (5) ? USP  Unique Selling Proposition ?  One value that distinguishes your from others  One value that lets you dominate the offer  The other values must meet the standards of the competition WE STARTUP Brussels
  61. 61. 2. Value Proposition (6) Value proposition can be synthetized … –Domino’s Pizza : Fresh, hot pizza delivered to your door in 30 minutes or less, or it’s free –FedEx : When your package absolutely, positively has to get there overnight –IBM : Global solutions for a small planet –Intel : Intel inside –Lexus : Passionate pursuit of perfection –Visa : It is everywhere you want to be –M&M’s : the milk chocolate melts in your mouth, not in yourWE STARTUP Brussels
  62. 62. 2. Value Proposition (7) ? Test you VP  4C’s check : Consistent / Logical / Durable Concise Clear Credible WE STARTUP Brussels
  63. 63. 2. Value Proposition (8) ? How to look for a VP ? :  Step 1: Use your biggest benefits  Step 2: Be unique  Step 3: Solve an industry “pain point” or “performance gap”  Step 4: Be specific and offer proof  Step 5: Condense into one clear and concise sentence WE STARTUP Brussels
  64. 64. 3. Quantify the Value Proposition (1) ? Value Proposition must be quantified ?  Measure clearly the economic & social benefits  Move from burden / cost to return on investment  Imposes to know the client weel  Study / prepare  Ideally  a well documented test case  Ideally you need to focus on a specific vertical WE STARTUP Brussels
  65. 65. 3. Quantify the Value Proposition (2) ? Get into your client’s mind Try to understand how your client currently solves his problem Assess the impact of your value proposition on his processes Calculate – Estimate the change  you need to give a good return on investment Be better, faster, cheaper ! WE STARTUP Brussels
  66. 66. 3. Quantify the Value Proposition (3) ? NIH :  In-house competition is a trap you need to manage  Be capable of evaluating the option of in-house development rather than evaluating your value proposition  Economic redemption  Learning and scale curves  Maintenance  Synergies WE STARTUP Brussels
  67. 67. 3. Quantify the Value Proposition (4) ? How to fix prices ?  Cost +  hmmm, not so good  Vs competition  not so good  Rather a benefit for the client  good  Ideally : integrated approach of all these options  Be creative WE STARTUP Brussels
  68. 68. 4. Decision Maker Unit – DMU ? Who will you pitch to sell ? Why ? You might have some choices ? Do you ? Choose the good / right interlocutor regarding your quantified value proposal … The pitch must fit the DMU … WE STARTUP Brussels
  69. 69. 5. Decision Maker Unit – DMU (2) ? Focus on ONE market subset  Startup  lack of resources (time, money, …)  Credibility <-> capacities  Need to validate the BM quickly  Know a vertical market very well, test your VP quickly, adapt your VP, test again, validate, explain,WE STARTUP Brussels
  70. 70. WE STARTUP Brussels Some basics to remind ?

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