How to do a Written PresentationAndrew Aday

Venture Series 2014Raising Money!

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AGENDA

Financing Sources Options Where and How?

Presenting to Judges What should you

prepare?

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Show me the Money

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Sources of Finance

Internal Finance Friends and Family? Retained Profits Sales of Assets

External Finance Debentures IPO Loans Overdrafts Trade Credit Grants Debt Factoring

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Funding source?

Seed Investment or Venture Investment? Angel Investors vs. Venture Capital? Friends and Family?

Potential Market Size Ideal Funding Source Small < $100 Million Bootstrap or AngelUnclear Bootstrap/Angel then

VCLarge = > $1 Billion Venture Capital

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YOUR ROLE AS A PRESENTER

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Raising Money: The VRIONIS LAW

Making Your Judge Remember You: The ADAY LAW

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What do Judges look for (Highest Level)

Star Founding Team There is a REAL need Unfair competitive advantage It makes sense

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Great Plan Requires a Simple Idea

25 words or less The Napkin test Simple Idea

(Not simple concept)

Google: “Our search algorithms….”

“We Organize the World’s Information”

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General Hints

Imagine the attention span of the judge

Gear language to audience If it doesn’t add value, drop it

You CANNOT lose your judge’s attention

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Part I—The formula Part II (Flexible)

The Secret Sauce

Introduction Problem Why is this a problem? Current solutions Why do these

solutions suck? Your

product/plan/proposal (drop the napkin)

Why your idea actually works

Product/Brand Positioning

Market Size Distribution Approach Operations Plan

(Team?) FINANCES Product/Service Vision

(end game) Conclusion

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Opening and Closing

Introduction Draw the judge in Introduce the pathos Make the emotional

appeal Tell a story

Conclusion End with the BIG picture Connect with the intro. Reiterate emotional

appeal Thank the judge, ask if

he/she has questions

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Finance and stuff

12 Slide Rule 15 Minutes

10 Minutes to tell the story 5 Minutes Q&A Standard Financial Documents:- Balance Sheet- Profit/loss Statement- Cash Flow Statement

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Background

Context for the opportunity Problem you are solving Disruptive wave you are riding

Answer the Question: Why now?? Is there an inflection point in the

market to leverage?

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15 Minutes to Hook

What is your solution and how does it work? Save gory details for follow on session

Competition: Ideally position against ONE competitor 2 x 2 Matrix SILVER BULLET TEST (if you had ONE, which company would

you kill)

Value

Performance

YOUR COMPANY HERE

Competition

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Product Positioning and Market Opportunity

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Explain the Market Opportunity

Single biggest determinant of outcome If you get the product market fit right, you can f@

%k up almost everything elseGreat management team + lousy market

Market winsLousy management team + great market

Market winsGreat management team + great market

Market Wins What is your TOTAL ADDRESSABLE MARKET (TAM)

See next slide (size matters) How fast is it growing?

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Go To Market Strategy

VERY VERY VERY IMPORTANT Direct?

- Inside Sales or Outside Sales? Channel

- When and How? DETAILS ON HOW THE ECONOMICS WORK

Cost of Customer Acquisition Conversion percentages Contribution Margin

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Funding To Milestones Chart

Year1 Year 3Year 2 Year 4

Milestones

Series A Series BSeed/Ramen

Series C

Milestone

Total Cash Needed

Alpha $1M in Rev $10M in Rev

Beta FCS

$-.5M -$1.2M

-$20M-$6M

Headcount 8 15 22 6535

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QuesTIONs You Should Expect

DifferentiaTION MonetizaTION CapitalizaTION ValuaTION CompetiTION

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Pitching Summary

You must compel! A great idea in 30 words or less Nail the Market-Product Fit Ask: Does it make sense?

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HOMEWORK: Positioning/Messaging On ONE Slide – answer ALL of the following questions:

What do we do? Why does it matter? What is the core problem? How do you fix it? How does what we do work? What’s the benefit? Why our Company? Why not another in the same space?