PitchingRayn Ong, October 2015

You can click on the links on the slides.

Agenda

1. My Background

2. Pitch: Audience, Purpose & Content

3. Investor Pitch

1. My Background

Rayn Ong• Tech guy for 9 years

• Angel investor for 2 years

• 9 investments, 1 exit

• Work with accelerators, angel groups and venture capital funds

• Seed rounds of $250K-$1M (@ $1-4M valuation)

Direct Investments

Led $1M round Acquired

Accelerators

Startmate muru-D

Angel Groups

Sydney Angels Innovation Bay

VC Fund

• Blackbird Ventures!

• Fund One 2012: $29M

• Fund Two 2015: $200M

2. Pitch

Audience

• Most important, because they give you $

1. Customer (sales)

2. Investor

• Public, for awareness (marketing)

Purpose

• First pitch is not about selling or closing

• Get people to ask you “how?”

• Get a meeting

Content

• Problem

• Solution

• Product

Types

1. Elevator pitch

2. Awareness pitch

3. Sales pitch

Elevator Pitch

• You have 10-20 seconds

• Focus on the problem you are solving

• My example: “I help early stage tech companies raise money.” (3 seconds)

• Purpose: how? + a meeting

Awareness Pitch

• Pitching competition or event, 5-10 minutes

• Focus on problem and solution!

• Example: you will see a few pitches later

• Purpose: marketing -> visitors -> customers

Sales Pitch

• You got a meeting, what now?

• 10-20 minutes, sometimes with a product demo

• Focus on your product and/or service

• How can you do things 10x cheaper, faster, better?

Content

• Problem

• Solution

• Product

3. Investor PitchAustralian Angel Investors

Content• Problem, Solution, Product

• Team

• Market Size

• Business Plan

• Competition

Team• Can this team get shit done?!

• Crazy, driven & capable team that I can have a beer with.

• Employee: 9am to 5pm, $100k salary.

• Founder: 5am to 9pm, often $0 salary.

• Talk about results and achievements.

Market Size

• How do you return 10x my money?!

• e.g. We invest @ $2M valuation today, when can you be worth $20M, and who will buy it?

• Why 10x?

• Market Analysis, TAM, SAM, SOM. (see appendix)

Business Plan• How do you get there?!

• Have a plan: product roadmap, hiring plan, marketing budget, sales channels, ramp up etc.

• Identify key revenue and cost drivers. Can you get to positive unit economics?

• Show your thought process.

Business Model Canvas

http://www.businessmodelgeneration.com/canvas/bmc

Growth• Happy customers

• 10-20% monthly growth

• 10% = 2.8x in a year

• 20% = 7.4x in a year

Competition

• How do we know you will win?!

• When other companies enter the market.

• Know your competitors.

• Defensible? Secret Sauce? Advantages?

Investor Pitch• Problem, Solution, Product

• Team - crazy people

• Market Size - grow to 10x quickly?

• Business Plan - how to get there?

• Competition - can you win?

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Thank you. !

Rayn Ong wechat: rayn91

Appendix

Metrics

• http://a16z.com/2015/08/21/16-metrics/

• http://a16z.com/2015/09/23/16-more-metrics

• https://medium.com/swlh/diligence-at-social-capital-part-1-accounting-for-user-growth-4a8a449fddfc

The Deal

• How much do you want to raise?

• On what valuation?

• What are the terms?

• http://www.avcal.com.au/resources/open-source-seed-financing-documents

Bonus , 3 articles

• Save some legal cost by reading the following

• http://www.startupdaily.net/2015/05/australian-vc-funds-open-source-legal-documents-help-startups-save-legal-fees-raising-capital/

• http://www.startupdaily.net/2015/06/deal-terms-australian-vcs-asking-actually-unfair/

• http://www.startupdaily.net/2015/06/australian-vc-paul-bennetts-responds-startup-dailys-critique-open-sourced-legal-documents/

Keep Learning• Subscribe to their newsletter too

• https://mattermark.com/ (funding)

• http://www.saastr.com/ (subscription model)

• https://www.intercom.io/ (customer)

• http://www.hubspot.com/ (marketing)