innovate calgary's presentation on perfecting the investor pitch at startup weekend calgary on...

INNOVATOR’S TOOLKIT Perfecting The Investor Pitch

Alex Raczenko Entrepreneur in Residence

How can you tell an Entrepreneur is Pitching?

Their lips are moving!

Pitching is KEY to Entrepreneurial success

Do it well... People Invest in YOU

Do it poorly... They will cross the street to avoid you

What’s it about?

v A Good Pitch IS NOT about.... § What you want to say

What’s it about?

v A Good Pitch is ALL about.... § What your audience NEEDS to hear §  Delivered in THEIR language

What’s it about?

v A Good Pitch is ALL about.... §  To moJvate them to agree to your ASK

What’s it about?

v A Good Angel INVESTOR Pitch IS NOT about Selling....

§  Your TECHNOLOGY

What’s it about?

v A Good Angel INVESTOR Pitch IS NOT about Selling....

§  Your PRODUCT

What’s it about?

v A Good Angel INVESTOR Pitch is ALL about Selling.... §  The COMPANY you will build around the technology / Product

What’s it about?

v A Good Angel INVESTOR Pitch is ALL about Selling.... §  Your PLAN to turn their $1MM investment into a $10 -‐ $20 MM Return On Investment in 5 years

More than a story....

v  From a company perspecJve: §  Build a manageable and acJonable •  Preliminary Business Plan •  Investor pitch



§  Develop strong foundaJon for related pitches •  Customer, Partner, Supplier... Etc.



§  Develop strong foundaJon for related pitches •  Customer, Partner, Supplier... Etc.

§  Align and balance Market, Business and Technology Teams • Market Leads • Business and Tech follow


v  From a personal perspecJve... §  Develop Confidence •  Find your voice...



§  Develop CLARITY and VISION •  Know WHERE you are going and WHY




§  Learn to LEAD • Align your Team




§  Learn to LEAD • Align your Team

§  Find your inner CEO... §  Build your Roadmap to SUCCE$$....


GET FUNDED!

A GREAT place to Pitch in Alberta...

A GREAT place to Pitch in Alberta...

§  Lead By Henry Kutarna

§  200+ Members

§  Personally screened and looking for good deals

§  Over $30MM Raised in past 3 years

Not Easy...

Over 200 deals screened annually

Only the BEST survive

Over 200 deals screened annually

Only 8-‐12 Deals get to Pitch...

Who do you pitch to...

If you want their Investment..

Your pitch MUST answer...

The 12 KEY QuesMons 1.  Why should I pay a_enJon? The IntroducJon 2.  Do you know your customer and their pain? The Problem 3.  Do you take the pain away? The SoluJon

4.  Do you know your Target Market? The Market 5.  Who else is doing this and why pick you? The CompeJJve Difference 6.  Is product ready and does it create Barriers? The Technology

7.  Can you find and get customers? The Approach to Market 8.  How does money flow from customer to you? The Revenue Model 9.  How much money will we make? The Forecast

10.  Do you have a plan for my money? The Milestones 11.  Can you execute? The Team 12.  How much $ do you need and what's my ROI? The ASK/Exit

Business Model Canvas Alignment 1.  The IntroducJon 2.  The Problem 3.  The SoluJon 4.  The Market 5.  The CompeJJve Difference 6.  The Technology 7.  The Approach to Market 8.  The Revenue Model 9.  The Forecast 10.  The Milestones 11.  The Team 12.  The Ask /Exit

Business Model Canvas Alignment 1.  The IntroducJon 2.  The Problem Value ProposiJon 3.  The SoluJon Value ProposiJon 4.  The Market Customer Segments 5.  The CompeJJve Difference Customer RelaJonships 6.  The Technology Key Partnerships 7.  The Approach to Market Channels 8.  The Revenue Model Revenue Streams 9.  The Forecast Cost Structure 10.  The Milestones Key AcJviJes 11.  The Team Key Resources 12.  The Ask /Exit Key AcJviJes

1. The IntroducMon

v  High level summary of answers to the 12 quesJons

§ Basis for your Elevator Pitch

v Targeted to Investor audience § WHAT”S IN IT FOR THEM

v Capture their FULL a_enJon FAST..... § OPEN WITH YOUR ACES......

2. The Problem

v  Understand your Customer PAIN §  Describe “A Day In The Life” BEFORE your Product §  For ALL customer stakeholders §  Across the enJre Target Value Chain §  QuanJfy the Pain for each stakeholder, for Target

Value Chain and for Market §  Show your target customers are SCREAMING for Your

soluJon

v  Show you know the buying moJvaJon

2. The SoluMon

v  Describe how you take Customer PAIN away §  Describe “A Day In The Life” AFTER your Product §  For ALL customer stakeholders §  In the enJre Value Chain you are targeJng §  Qualify Pain ReducJon -‐ Reduce, eliminate, OpJmize §  Qualify Gain addiJon – enhance, add, expand §  QuanJfy your VALUE PROPOSITION ( $$$VP$$$ ) for

§  Each stakeholder §  EnJre Value Chain §  Company §  Target Market

4. The Market

v  Describe the market for your soluJon §  How many customers exist for your product §  How much do they spend now on soluJons

v  Show your Strategy to Market Dominance §  Show AcJonable Target Market SegmentaJon §  Show Current Market PenetraJon §  Show your market penetraJon targets and

Jmeframes

v  Describe market sensiJviJes and Growth Rate

5. The CompeMMon

v  Name your Direct CompeJtors v  Show your CriJcal DifferenJaJon

§  Why pick you Today?

v  Show you deliver compelling VALUE v  Describe past success against compeJJon v  Show TRACTION

6. The Technology

v  Show your product §  Product status... Test, producJon, delivery dates §  Scalability Model

v  Describe Manufacturing plan and partnerships v  How do you create barriers to entry?

§  Secret Sauce §  IP strategy §  Strong exisJng Partnerships / Channels

v  Describe how IP will moJvate AcquisiJon

7. Approach to Market

v  How do you build Awareness in Target Market §  Web site, tradeshows, Social Media, press §  Awareness Scale Up Strategy

v  How do you saJsfy demand? §  Direct sales -‐ Sales Force §  Channels – What they bring to you §  Market Scale-‐up Strategy

v  Describe sales cycle and Funnel

8. The Revenue Model

v  Show unit pricing v  Describe cash flow model

§  SAAS – Recurring, SubscripJon, Support, Services §  Billing cycles

v  Show how $ flows from customer to you §  For each channel §  Show your target margins §  Show how much your channels make

v  Show your gross / net margin targets

9. The Revenue Forecast

v  Show 5 year Revenue Targets §  Top line Revenue §  Costs §  EBITDA

v  Show related Customer or Unit counts v  Show key revenue growth events v  Show anJcipated financings v  Show breakeven point

10. The Milestones

v  Show major OperaJonal Milestones only §  Varies according to company §  Show Time Line

v  Historically – what have you done so far v  Future – show you have a plan for Growth v  Show you have a plan for their $$ v  Overlay Phases of strategy over appropriate

milestones

11. The Team v  Show key execuJves

§  Show WHY they are ideal for this company §  Show what roles they play in company §  Show team balance – Market, Business, Tech

v  Show current Board members §  Advisory, Fiduciary

v  Show external partners §  Legal, AccounJng, manufacturing, channels

v  Show outstanding recruiJng needs

12. The Ask v  Show Money already invested

§  Founders, Friends and Family §  Total Prior Raises §  Grants, loans §  Restate this years Revenues

v  Specify THE ASK §  How much $ are you looking for §  what % investment will buy §  preferred investment mechanism

v  Show use of proceeds – high level % only v  Discuss EXIT Strategy

Show comparables

More info....

WWW.Innovatecalgary.com

innovate calgary's presentation on perfecting the investor pitch at startup weekend calgary on...

Technology

developcondence findyourvoice

theproblem valueproposijon

themarket customersegments

thetechnology keypartnerships

themilestones keyacjvijes

theaskexit keyacjvijes

thesolujon valueproposijon

theapproachtomarket