Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

VC Pitches That Work


Published on

This is a presentation I've used speaking to entrepreneurship classes. It's an amalgamation of my own thoughts and those of others from the web. You'll see it's a little dated, and not necessarily oriented to the current super angel phenomenon but hopefully it will be useful to entrepreneurs looking for guidance on putting a cogent pitch together.

Published in: Economy & Finance
  • Be the first to comment

VC Pitches That Work

  1. 1. VC PITCHES THAT WORK<br />Todd Klein<br />Legend Ventures, LLC<br />9/15/10<br />
  2. 2. STRUCTURE OF THIS PRESENTATION<br />Most important slides, what goes on them<br />Examples of “Right” answers<br />E.g., for this presentation: Fictitious Mobile Applications startup<br />What is the VC thinking?<br />2<br />
  3. 3. MISSION OF THE BUSINESS<br />What’s on the slide: Succinct one-liner that encapsulates the business idea<br />Example: We are the Amazon of Mobile Applications<br />What the VC is thinking: “Why do I care?”<br />3<br />
  4. 4. MARKET PROFILE<br />How big is the market and how fast is it growing?<br />150 M smart phones in US, 300 M in ROW<br />Average $2.50/month spent on mobile apps<br />“Is there a billion dollar company in here?”<br />4<br />
  5. 5. PROBLEM/OPPORTUNITY<br />How big is the customer’s problem<br />Smart phones are becoming indispensible, need trusted source of applications<br />“Is the pain so bad that solving it will generate high gross margins and fast adoption?”<br />5<br />
  6. 6. YOUR SOLUTION<br />What is unique about your solution<br />Comprehensive source, optimized price, for every smart phone<br />“Who’s tried this before (if anyone) and why hasn’t it been addressed successfully until you showed up?”<br />6<br />
  7. 7. TEAM SLIDE<br />Names & Experience (include gaps you’re trying to fill)<br />Built a service that achieved $15 million in revenues in two years before being sold to Microsoft<br />“Would I stake my entire professional reputation on these people?<br />7<br />
  8. 8. TECHNOLOGY<br />What is the Secret Sauce? Is it defensible? Headstart over others?<br />Patented search and fulfillment engine<br />“Is it ready, will it take 1 year or 5 more years to be ready for prime time?”<br />8<br />
  9. 9. CUSTOMERS<br />Who is paying for or testing the product?<br />We have 100,000 users<br />“If it weren’t free, would people pay for it? And if it is free, what freemium opportunities are there?”<br />9<br />
  10. 10. VALUE PER CUSTOMER<br />Key slide<br />Gross profit per customer<br />Costs to acquire customers<br />Fully loaded costs to service customers<br /> Customer churn<br />Minimum customers to breakeven<br />“What is the lifetime value of a customer?”<br />10<br />
  11. 11. GO TO MARKET STRATEGY<br />Getting in front of customers<br />We use SEO to reach customers<br />“What are the key channels that influence customer awareness and buying behavior?”<br />11<br />
  12. 12. KEY MILESTONES (S/U OF FUNDS)<br />Development milestones, when will the product be ready<br />This round will get us to 3 million users<br />“How far will this financing take me? Will there be a chance for an early exit or a step up on the next round?”<br />12<br />
  13. 13. FINANCIALS<br />I/S, B/S, C/F statements<br />Numbers are still attractive if we’re off by 2X or more<br />“Are these credible, has the team thought through its model?”<br />13<br />
  14. 14. COMPETITION<br />2 X 2 matrix structure: most important competitive variables on the axes (Blue Ocean Strategy)<br />Our unfair advantage is…<br />“Does this team know really know its market?”<br />14<br />
  15. 15. FINANCING TO DATE<br />Capital invested so far, amount of this raise<br />We’ve been capital efficient up until now and will remain that way<br />“Is this a club I want to join? Are these potential partners I respect?”<br />15<br />
  16. 16. WHY XYZ VENTURE FIRM<br />Why do you want to work with this investor?<br />We need expertise in X area and help with Y relationships<br />“They like me, they really like me!”<br />16<br />