Deliver a winning vc pitch

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THE WINNING PITCH March 2014

Transcript of Deliver a winning vc pitch

Page 1: Deliver a winning vc pitch

THE WINNING PITCH

March 2014

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CRITERIA

• Management • Business plan / Investor deck • Compatible co-investors/ Cap Table • Compelling technology, product,

service or market position • Sustainable differentiation • Addressable market size • Investment structure and terms • Exit strategy

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DOCUMENTS

• Executive summary

• Investor deck

• Pitch deck

• Detailed Financials

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CAPTURE INTEREST QUICKLY!

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DECK OBJECTIVE

• Do your homework

• Have a compelling story

• Documents evolve, listen

• It takes time

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PITCH DECK

• 12 Slides

• 30 pt. Font

• 4 Bullets

• 10 Minutes

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1. COVER

• Company name

• Company location

• Logo or graphic

• Tag line

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2. COMPANY OVERVIEW

• Most important slide

• What does company do

• Unique, clear, crisp value proposition

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3. TEAM

• Key members / unique qualifications

• Been there, done that team

• Deep industry expertise

• Board / advisors (if appropriate)

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4. OPPORTUNITY

• Addressable market

• Aha! moment

• Problem (pain) that you are solving

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5. SOLUTION

• Technology, product, service

• Proof of concept / MVP

• Delivery

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6. GO TO MARKET STRATEGY

• Marketing and sales strategy

• Sales and distribution channels

• Focus on core competency

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7. COMPETITIVE ADVANTAGE

• Barriers to entry

• Competition

• Sustainable advantage

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8. BUSINESS MODEL

• How do you make money

• Who are your customers

• How do you know they will buy

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9. FINANCIAL PROJECTIONS

• Historical plus 3-5 years

• Top line only (Revenue, COGS, G&A, M&S, S&B, NOI)

• Cash flow estimates 3-5 years

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10. FUNDING

• $$ hard cash invested & by whom

• $$ being raised now and later

• Realistic pre-money valuation

• Plans for use of funding

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11. EXIT STRATEGY

• How & when plan to exit

• Comparable transactions

• Multiples

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12. SUMMARY

• Second most important slide

• Take away slide

• Solidify core value proposition

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REMEMBER • Have a good story to tell

• Tell a good story

• You are competing for $$!

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TIPS

• CEO is the only presenter

• Be passionate

• People can read the slides

• Use charts and pictures

• Anticipate Q&A

• NO gimmicks / NO animation

• No industry acronyms

• PowerPoint / PDF (no Mac)

• Don’t wing it

• Practice, Practice, Practice!

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INVESTORS

• It is a marathon / many rounds

• Choose wisely

• Crowd funding vs Accredited

• Need for continued support

• Convertible Notes is really not a good vehicle

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GOOD LUCK!

RICHARD WEISZ [email protected]

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INVESTOR DECK VS. PITCH DECK PITCH DECK • Not stand alone

• 12 slides

• Team tombstones

• Top line financials

• Market opportunity flagged

• Product summary

• Top line milestones

INVESTMENT DECK • Stand alone document

• +20 slides

• Team bios

• Summary financials

• Addressable market defined

• Full product description

• Defined milestones

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SAMPLE FINANCIALS 2012

Actual 2013

Actual 2014 Est 2015 2016 2017 2018

Revenue

COGS

Net Rev.

G&A

M&S

S&B

Total Exp.

NOI