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Agenda
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What is a Pitch?
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The Goal:
A. Get a meeting
B. Get the 2nd, 3rd, and 4th
meetings until you get
funding (or a firm “no”)
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Level of
Business Plan / Additional Detail
Investor
Interest Pitch Deck / Exec Sum
Why is it so important?
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~from David Blumberg of Blumberg Capital, and published in How to Value Your Business
and Increase its Potential, by Jay B. Abrams, McGraw-Hill.
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First:
Pick your best cat herder
Figure out your audience (more on this later)
Develop ideas first, slides 2nd
Then:
Start with an attention grabber
Quickly get to the ‘a ha’ moment
Tell a complete (short) story
And of course:
Extreme text minimalism (“highway billboard”)
Weave in a killer, kick ass demo
Tout your numbers if you’ve got ‘em
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Analogy
Hi, I’m Joe Smith, founder of Acme Software. We develop sales lead
What we doÆ
tracking applications for the real estate market. It’s like CRM, but with
a lot of embedded data and very powerful analytics.
Our home pricing tool is more than twice as accurate as the leading
Why we
are better Æ
competitor, due to our proprietary data scraping engine. And, our UI is
easier to use because it was based on 6 months of shadowing agents in
the field. This helps agents sell more homes, faster, at higher prices.
Current statusÆ We are currently running beta trials with two of the largest local
brokerage firms. We have raised $1 million from angels.
What we We are seeking $3 million in VC funding for marketing and hiring.
need and whyÆ
This will get us to a national launch with 6 additional brokers in Q1.
“Hooks”
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is ___________________________________________________________________ .
IPO, acquisition, etc.– name possible acquirers if relevant
Optional: selectively include other key points, such as current investors, major partners, or customer traction as appropriate.
Remember: your main goal is to hook their interest– not describe your entire company or technology. This hook will encourage
investors to ask follow-up questions and engage in further dialogue.
Then,
How – will you get market share? (aka, Marketing and Sales)
Who – else is doing it? (aka, Competition)
How Much – money do you need?
How Far – does that take you? (Milestones)
How Much – money will it make? (Business + Financial model)
Who – else is on the team? (full bios)
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•
Sequoia’s Outline
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2. Problem 7. Product
Describe the pain of the customer (or the customer’s customer). Product line-up (form factor, functionality, features,
Outline how the customer addresses the issue today. architecture, intellectual property).
Development roadmap.
3. Solution
Your company’s value prop. to make the customer’s life better.
8. Business Model
Show where your product physically sits. Pricing, Revenue model
Provide use cases. Average account size and/or lifetime value
Sales & distribution model
Customer/pipeline list
4. Why Now
Set-up the historical evolution of your category.
Define recent trends that make your solution possible.
9. Team
Founders & Management
Board of Directors/Board of Advisors
5. Market Size
Identify/profile the customer you cater to.
Calculate the TAM (top down), SAM (bottoms up) and SOM.
10. Financials
P&L, B/S, Cash flow
Cap table, The deal
Audience Tuning
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Connection:
Know who will be there
Get them involved, interacting
Ask lots of questions
Make it personal
Messaging:
Tell them, show them, tell them
again
Use cases to connect the dots
Have a memorable mission or
mantra
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50,000-ft. view
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+
Target the right investors; Reach them through warm referrals
+
Demonstrate management’s execution credibility through early
sales, partnerships, and recruitment skills
=
“Perfect Storm” for raising capital and maintaining
negotiating leverage
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Thank You
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www.venturearchetypes.com
Nathan@venturearchetypes.com
P: 415-370-5060