HOW TO WIN SEEDCAMP

What are investors looking for? IN THEIR OWN WORDS:

“We are looking for an understanding of a customer and their problem with a service that solves their pain and the potential of a business model to monetize the customer base. The monetization model needs to at least result in a $100M revenue business growing at 20%-30% with strong EBITDA margins.”

The CEO and founder jumped straight to a demo and wanted to show us the product without the typical team, market, etc. etc. He had a real product with real customers and he was proud to show that. That impressed me more than the sophisticated pitches which are high on buzzwords and low on facts and substance.

For early stage companies (where you are not pitching demonstrated revenue growth), good pitches rely on either a compelling entrepreneur or a compelling idea. Great pitches rely on both. Notice that I didn’t mention technology – great technology only works if it’s in service of the compelling idea.

The market was large with proof points of successful outcomes [e.g. IPOs, acquisitions], the service was hard to pull off because of the relationships needed to be built with carriers, and the team had the experience of working with carriers to be successful. Despite the huge risks of working with carriers, it was a bet worth making BECAUSE the team had the skills to potentially succeed and if they succeeded the outcome was large.

What’s important is NOT how great your product is, but why customers will spend money on it. And, just as important, why will they not spend money on something else.

Founders assume they have to have all the answers. We know there is uncertainty and risk in your plan – if there weren’t, venture capitalists wouldn’t be in business. The important thing is to define where you think the risks lie and why the potential reward is large enough to justify taking the risks.

Solve a PROBLEM that is criticalUnderstand who you’re helping and why they payHUGE MARKETThe RIGHT entrepreneur who can executeViable business model

What??? No Technology?

Technology CAN be your competitive advantage

It DOES NOT REPLACE the above

Do you FIT this picture?If not, CAN you?

SHOULD you?

PRESENTATION

Solve a CRITICAL PROBLEM

SOLUTION: DEMO

Who should BUY it? WHY?

MARKET

BUSINESS MODEL and WHY it would WORK

TEAM

WHAT DO YOU WANT FROM ME? WHY

AT THIS STAGE, IT’S MOSTLY ABOUT YOU

PRACTICE (A LOT)including potential questions

KNOW YOUR STUFF

Use the sign-up form: good stuff in there

MENTORS ARE AWESOME

NOT!

BIASED by experience

NO MARKET KNOWLEDGE (if you’re unique)

No deep understanding of your business

WHAT NOW?

Mentors ARE awesome

Pay attention to what they ASK, not what they SAY (business related, not necessarily product related)

DO they UNDERSTAND?

LISTEN

It’s NOT a DEBATE

DON’T DEFEND

Communication?

VALUE?

BOTH?

INSIGHTS COME FROM THE RIGHT QUESTIONS

PRODUCT != BUSINESS

GET FEEDBACK ON PITCH

90% FAIL

WAR, NOT BATTLE

MAKE AND TEST ASSUMPTIONS

THANQ