jim poage president and ceo 1. pop quiz i want to start a new venture because: a)my...
TRANSCRIPT
Jim PoagePresident and CEO
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Pop Quiz
I want to start a new venture because:
a)My invention/discovery will help mankind.
b)I want to build a company dominant in the market.
c)I want to get rich.
d)All of the above
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The Elevator Pitch
• Origins in “.com” period around 2000
• Short pitch which tells potential investor about the deal
• Objective is to get an invite to present the deal
• Could be investors ‘first cut’
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Key Elements
• Early ‘hook’• Brief description of the product or
service• Revenue model• Management team• Competition• Competitive advantage• Call to action
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Coaching Tips
• This is “one-on-one”• Show passion• Show confidence• Minimize hyperbole• It’s a business deal not
an invention• Google “elevator pitch”
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The Elevator Pitch
• Turn to someone you don’t know
• Right now:
Most important person in the world
• 60 second pitch
Recommended Documents
(In order of importance)
1. Investor Presentation
2. Elevator Speech
3. Business Plan
4. Executive Summary
5. One Page Summary
6. Customer Brochure
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Recommended Documents
(Probable Chronology)
1. Elevator Speech
2. Business Plan
3. Investor Presentation
4. Executive Summary
5. One Page Summary
6. Customer Brochure
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What they want to know
1. What is the technology?
2. How big is the market?
3. Who is on the Management Team?
4. Is this a good deal?
Venture Investment 101
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Investor Presentation
• Single most important aspect of fund raising
• Play to your audience• Be respectful of time• Business attire• Objectives:
– Not to close the deal– Invitation to ‘talk’– Build investor confidence
in you
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Typical Pitch Timing
• Presentation: 20 minutes• Q&A: 20 minutes• Investor discussion: 20 minutes
– You’re not in the room• BTW: This is a ‘somewhat’ universal
format for angel groups
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Content Elements
• The problem?• Product/Service• Value proposition• Market • Competition• Competitive
advantage
• Management team
• Revenue model– Revenue received
• Funding request• Uses of funding• Funding
milestones• Pre-money cap
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Content Timing
• Every deal is different• It’s your message and your deal• However,
– Management– Technology– Market– Financials
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Coaching Tips
• Show passion• Show confidence• Demonstrate knowledge• Minimize hyperbole
– Name dropping• It’s a business deal not an
invention• Presentation Team members• Consistent team attire
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More Coaching Tips
• Graphics, color, & photo’s• No hard to read slides
– 10-20-30 rule• Do not read the slides
– Watch the audience• Well choreographed• Numbers all ‘foot’• Copies for audience• “show & tell”• Practice timing
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Q&A Coaching Tips
• Short direct answers• No ‘piling on’ • Backup slides
– Cheat sheet
• Curve balls– May be asked for a term sheet– Avoid technical discussions– Don’t get defensive or angry
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Après-Presentation
• Do a post mortem on each presentation given
• Build an inventory of slides • Be prepared to give many
presentations• Remember you are only
looking for a few investors• Expect ‘stay in touch’
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Why a Business Plan?
Business StrategiesProduct Development
Sales & Marketing
Financial
Others
Management in sync(Equity Funding World)
Sell the venture
Due Diligence
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Preliminary Remarks
No proprietary warnings
About 20 pages without exhibitsAbout 6500 -7500 words
10 or 12 pt Times New Roman
SpellcheckerFlesch-Kincaid Readability <30
Table of Contents and page numbers
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Technology
Detailed description of the problemSet up the Value Proposition
What is the solution5th grader rule
Product DescriptionFeatureFunctionBenefit
Intellectual Property
State of Development
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Market NeedMarket SizeCompetition
Direct & Indirect
DifferentiatorsPricing StrategySales Strategy and processRevenue sources
Market
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Management Team
Who is on the team
Domain Expertise
Entrepreneurial Experience
Board of Advisors
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Attractive Investment
Pro Forma P&L – To Exit (5-7 years)Assumptions driving the numbers
20X N5
Pro Forma Balance Sheet
Cap table
Funding Request
Pro Forma Cash Flow
The ‘Deal’ and Liquidity Events
Use of FundsIntegrated timeline
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Integrated Timeline ($K)
Development
Sales & Mkting
Cash
Investment
Alpha Beta Production
Hire Sales Sign 1st Distr 1st Sale
$20
$150 $350
$110 $15 $135$90$205 $120
Continued Sales
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Cosmetics & Presentation
Lots of graphics and color
Puppies & Kittens
Professional binding with heavy paper
Double sided printing
May want to consider a Marketing Communications advisor
The objective is make it easy to read
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I Know you can’t Read this but…
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I Know you can’t Read this but…
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Title Options
1. Title is the TOPIC
2. Title is the answer to the question:
So What?
Sums up the slide28
What really happens
1. Read the first paragraph
2. Look at the financials$ Revenue line
3. Look at the Management Team
Is there a ‘hook’?
How much &
20X N5?
Can they pull this off?
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Biggest Mistakes by Entrepreneurs
1. Too much on the technology
2. Too little on the Management Team
3. Failure to abide by the ‘5th grader rule’.
4. Failure to articulate the Value Proposition
5. “There is no competition.”
6. “This assumes only a 1% market penetration.”
7. Too much or too little detail on the Pro Forma
8. Does not state ‘The Deal’
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The Elevator Pitch
• Lets go back• Turn to the person
that you pitched to• Tell them one word
(no hints)
• Your name is ______
