fundamentals of an investor pitch the material in this presentation is that of the presenter and...

Fundamentals of an Investor Pitch

The material in this presentation is that of the presenter and does not necessarily represent the opinions of Deloitte Services LP or the Cleantech Open

Steve “Zam” ZamierowskiTech-Venture Center [email protected]

http://www.cleantechopen.com/

Copyright © 2007 Deloitte Development LLC. All rights reserved. 2

The Pitch

1. Title Slide

2. Market Problem

3. Solution and Technology

4. Business Model

5. Sales & Marketing Strategy

6. Competition

7. Management Team

8. Financials

9. Current Status

10. Sustainability & Close

Sell the Story

Get the Next Meeting


Title Slide

•Introduce yourself to establish credibility•Elevator Pitch

– Macro Problem– Macro Solution

The End

Power supplies are in all electronics• One tenth the size• Half the cost• Three times more reliable


Initial Market Opportunity

•Macro Trends– Lighting is 20% of global energy usage– $20B A19 bulb market– Regulations forcing shift from incandescent– CFLs not meeting consumer requirements

•Problem/Opportunity – LEDs hold promise for replacement bulb market, BUT

power supply is limiting factor• Brightness limited to 60 watts• Reliability• Price


Customer Requirements and Validation

•Bulb manufactures need LEDs– 60-100 watt output– longer life– Less than 1 year RIO from energy savings

“LED lighting is the future; This technology is clearly a key enabler”

“This could be very timely; power supply cost is becoming a major challenge, LED costs are declining but power supply components are already commoditized”


Solution

•60 – 100 watt output– More space for heat sink

•Reliability– Elimination of the most common

point of failure and life-limiter results in 3X life

•Cost– ½ the components and no hand

assembly leads to 50% reduction in cost

– And customer RIO from energy savings of less than 1 year


Technology/Invention

•What’s the underlying invention or breakthrough

•Is it patented•What are the barriers to entry

Speed (MHz)

Inte

grati

on

1001010.1

Exclusive option to license 2 dominant VHF patents


Market Size

•A19 Power Supply– Annual shipments of 450,000,000 A19 LED bulbs by

2013 (source)– ASP = $3– Annual market = $1.35B

•OnChip’s product will increase demand


Business Model

• What: power supplies to LED bulb manufactures – Outsourced manufacturing in existing semi fabs

• Who: initially to emerging innovators and then to established leaders

• How: Direct to manufacturers – Sales VP is key hire

• Price: $3.00 with 50% gross margin– Maintain 50% margin with price and costs fluctuations


Focused Sales & Marketing Strategy

• Who will be your first customers– What market segment– How will you find them– How will you get there attention and time– Why will they buy from YOU

• How will those first customers lead to more


Competition, now and anticipated

Second most important customer benefit

Mo

st i

mp

ort

ant

cust

om

er b

enef

it

Them

Them

Them

US

Low

High

High

OnChip has three– Size– Reliability– Price


Management Team (next 1-2 fundable events)

•Management Team– How each of them are qualified to accomplish

specific tasks to reach your milestones– Wholes/Key Hires

•Advisory Team– Only active advisors– Get industry leaders involved


Financial Projections (3-5 Years)

• Bottom Up, Not Top down• Revenue = Units x ASP

– Include number of customers/partners

• Costs include– Head Count: fully loaded

• Productivity assumptions

– COGS– Cost of sales and marketing (2-3x expected)– Capital equipment and G&A

• Cash flow break even is not the main goal, being a market leader is.

The specific numbers are less important than the assumptions!


Status and Funding Requirement

• Honest assessment of product/service readiness• Honest customer feedback or sales• Capital amount being sought

– Needs to take you to the next fundable milestone• What that capital will fund

– # months– Current and follow-on produce development– Key hires– Sales (# customers and revenue)

• Follow-on Funding and milestones


Product Development Roadmap and Funding

Q3 2010

2011

Prototype DC-DC

LED Driver Engineering Samples

LED Driver Scale-up (bulbs)

2012

2013

2014

Laptop PS Product Dev’t

Gro

wth

,

Valu

e

A Round: $5 M

2015

LED Driver (fixtures)

First Revenue from LED

Driver Sales

R&D Advanced Devices

DC-DC Product Dev’t

First Laptop Power Supply Sales

Seed: $1.5M

LED Driver

Samples Available


Close: Ask for the Sale!

•Environmental Stewardship: How will your company contribute to a healthier Earth?– Product/service impact

• OnChip: reduction 16% of energy usage and CO2 emissions by 470 million tons annually

– Company’s environment impact and use of natural resources – include in written plan

•Social Responsibility: include in written plan•Ask the judges to make you a finalist

– How will winning the Cleantech Open help get your company to the next milestone

fundamentals of an investor pitch the material in this presentation is that of the presenter and...

Documents

deloitte development

year slide

title slide

meeting slide

demand slide

reliable slide

commoditized slide

annual market