financing growth for devs 2015
TRANSCRIPT
Financing Growth for Developers
David Shore7pm
@davidshoreDavidGShore
Please turn off cell phones
Who Is This Guy?
Start-ups in the 80’s and 90’s
2000 - 2012
2004 - 2011
InvestorEntrepreneur
Advisor
2001 - 2013 -
Perspectives
Founder Board Investor
Exit Transactions
.
M&A
What Is Mojio?
What Is Mojio?
COMMUNICATION
Textual Presentations
- PERFECTING YOUR PITCH -
Graphic Presentations
- PERFECTING YOUR PITCH -
Textual Presentations
Graphical Presentations
Graphical Presentations
Pricing : A Science and an ArtTYPE OF INVESTOR Issue Aftermarket
INSTITUTION UNDERWRITE BUY
RETAIL BUY HOLD
STAGS BUY SELL
- PERFECTING YOUR PITCH -
The Secrets of Superb Public Speaking – John Miers 2009
What was the title of the previous slide?
- PERFECTING YOUR PITCH -
Keep the answer to yourself for a sec…
Pricing : A Science and an ArtTYPE OF INVESTOR Issue Aftermarket
INSTITUTION UNDERWRITE BUY
RETAIL BUY HOLD
STAGS BUY SELL
- PERFECTING YOUR PITCH -
The Secrets of Superb Public Speaking – John Miers 2009
Eye Contact
- PERFECTING YOUR PITCH -
Demo
Tell Me What You Do
Describe the problem you solve.
“We sell [hardware/software]
that helps [our target market]
to [save money or make money]”
- PERFECTING YOUR PITCH -
Tell Me What You Do
- PERFECTING YOUR PITCH -
PRESENTATION
Slides
- PERFECTING YOUR PITCH -
Company DescriptionTeam Problem or NeedSolution/DemoValue PropositionAddressable Market, TractionCompetition
Sales and Marketing StrategyRevenue ModelProjectionsRoadmapSummaryContact InformationAppendix
10 seconds to 2 minutes each
1
Presentation to:
Date and time
Snapshot
$2m for an active board seat
2
Team• John, CEO • Former ABC, XYZ
• Jim, CTO, Founder • Former ABC, PQR
• VP Marketing • Identified
• David, Board Member • DEF, PQR
.
3
Industry Problem
Revenue is dropping
Expenses are rising
Customers are leaving
4
Our Solution
5
“This should save us $100 per employee per year”
Mr. Big, CEO of Target Customer
Our Solution
5
Reference Clients
Annual $ Buying Decision
ABC Co 35,000 Access from the cloudLMN Ent. 42,000 Flexible pricingXYZ Inc. 25,000 Convenience, time savings
• Relate each decision to value • “Price” is a problem
Demo
Addressable Market
6
Traction
Competitive Position
Comp
Speed
Functionality
7
Comp
Sales and Marketing Strategy
Pricing strategy
Target markets
Channels or partners
Current funnel
8
Road Map
11
Year 1 2 3 4 5Early Adopters
Crossing the Chasm
Mainstream Growth
Design
Beta, one sector
Full Launch
IP RoadmapFunding Roadmap
ExitRevenue RoadMap
today
Alpha
Seed, Angel$1.2m
F, F & E$0.3m
Series A$4m
Series B>$10m
Expan-sion
Projections
9
Projections
10
• Team
• Traction
• Timing
13
Summary
Appendix
14
•IP Summary
•Development Roadmap
•Market Segments
•Use Case – Primary Markets
•Use Case – Secondary
Markets
•SWAT Analysis
•Positioning Detail
•Channel Detail
•Pricing Detail
•Market Trends
•Tech Trends
•Proforma HR
•Cap Table
•Uses of Capital
Follow up
- PERFECTING YOUR PITCH -
• A short email that night• Answer open questions and
tasks• Lead into next steps
Avoid Saying…
• ‘Our projections are conservative’
• ‘We have no competition’
• ‘We have a first mover advantage’
• ‘We only need to capture x% of the market share’
.D - PERFECTING YOUR PITCH -
.
Tell Me What You Do
Describe the problem you solve.
“We sell [hardware/software]
that helps [our target market]
to [save money or make money]”
- PERFECTING YOUR PITCH -
Objectives
Murphy’s Law
High Valuation Trap
Problem:•Follow-on investors value lower than last•Forced to “cram down” last investors or no deal
Solution:•Understand downstream valuations
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Valuation• Consider the post $ cap table for the next
round• And subsequent rounds to the exit
.
Exit Valuations• Multiple of –Revenue (eg. $10m x 2 = $20m)–Profit or EBITDA (eg. $3m x 6 = $18m)
• Discounted Cash Flow (can be lame)
• All are better when company is growing– (Importance of timing)
.
Thank You
.
[email protected] @davidshoreDavidGShore
This deck is available at slideshare.net/davidshore