Pitch Presentations

Agenda Opening Comments Typical Pitch Outline Pitch Principles Some Additional Thoughts Today’s Task

Opening Comments Science? Or Art? Pitch presentations are not created equally They don’t need to be But, there are some basic guidelines and outlines In the end, the flow and content needs to tell a compelling investment story Practice, practice, practice…and you will get a good feel for the flow and key messages

Investor Pitch Outline Elevator Pitch Key Highlights Problem Being Solved The Solution Market Opportunity Business or Revenue Model

Investor Pitch Outline Market Approach & Growth Strategy Team & Key Stakeholders Financial Forecast Competition Required Investment Some Optional Slides

Elevator Pitch A brief overview of your company or a quick one-liner summary that combines your vision, product, core value proposition, and/or the mission of your company Keep it short and memorable Focus on the “Big Idea” Be provocative

Elevator Pitch Try making it relatable… As in “We are X for Y” For example… “We are AirBNB for Event Spaces” “We are the Starbucks of Frozen Yogurt” “We are the Uber for RV’s”

Key Highlights Show your timeline and milestones achieved to date Give the audience a sense of your traction or momentum Key numbers already achieved

Key Highlights Highlight press, partnerships, patents, accolades Customer success stories and/or testimonials Highlight your expertise

Problem Being Solved Define the real problem or need you’re solving. Who are you solving the problem for (i.e. the customer)? What need do you fill? Show the insanity of how customers address the issue today Answer the “So What?”

Problem Being Solved Who else is already doing this? How are they going about it and, importantly, what are they not getting right or doing wrong? Ensure you are solving real pain or real problems Nice to haves are not investable

The Solution Unique features and benefits and advantages The value proposition What makes it novel?

The Solution Tell the story of your customer Make it easy to understand How customers use or value your product or service Images and visuals are better than lots of text Show don’t tell (screen shots, photos, MVP’s)

Market Opportunity Define your market. What business or space are you in? Your place? Your segment? Your niche? Who are your customers? Clearly define exactly who you intend to serve.

Market Opportunity What is the total market size? The “addressable” or “reasonable” market you can serve? In dollars? In units? In users? What is being spent on the problem today? What are the macro trends in the industry?

Business or Revenue Model How are you going to make money? What is the pricing structure or pricing model? Average deal size? Show basic math on revenues, number of customers, conversion rates. Life-time value of an average customer? How many months, how many dollars?

Business or Revenue Model Are there any other meaningful revenue streams? Is the business (i.e. revenues) scalable? What makes it scalable? How will it scale? Simple is better. Too complicated will leave investors scratching their heads.

Business or Revenue Model Cost to acquire is perhaps the most overlooked and important metric. What are the downstream costs to sell and service the customer. Is the model sustainable if competitors start to steal share? What will the downward pressure be on price over time?

Market Approach / Growth Strategy How will you “go to market”? How do you plan to grow your business? Will you use direct sales? Will you license to partners? What channels? Retail? Professional? Online? Where will you get in front of them?

Market Approach / Growth Strategy Where are your customers looking today and finding help? What are the most important and unique channels and methods you will use to find and win customers? How are you doing it differently than others in the space? How will you achieve your target growth rates?

Team & Key Stakeholders Highlight key team members and their prior positions, successes, domain expertise. Demonstrate relevant experience. Which roles are key to success in your company or your space? Do you have the “know how” and the “know who?”

Team & Key Stakeholders Highlight key experts or advisors. Highlight “smart money” or domain investors who know the space.

Financial Forecast Include a 3 year financial projection. Where appropriate, mention key & critical assumptions in your financial model And, be prepared to defend the assumptions Be able to speak to the impact of various scenarios (e.g. price changes) What is the “burn rate?”

Financial Forecast Highlight each of the following: Total Revenue Total Expense Profit (or “EBITDA”) You may also want to highlight: Total Customers Total Head Count

Competition How are you better? What is your “Secret Sauce” and how is it a benefit or value over the competition What are your unique advantages? Where do you exist in the larger overall market space?

Competition How is your place in the market unique to you, and the right one for your company growth and customers? Who are the competitors, why have they succeeded, and how do you truly differentiate from them? Hint: Illustrate in a simple matrix or grid to compare your product to the competition

Investment Requirements This is your ‘ask’ for funding and ‘use of funds’ State how much capital you are raising, and with what general terms: equity, debt, convertible note What is the timing of your capital raise? When do you need the money? What are the required installments to achieve milestones?

Investment Requirements What are your key uses of funds and how much for: Founder salaries (…keep it real…) Sales & marketing & product launch New hires Technology / product or service development / patents Capital expenses / equipment / prototypes

Optional Slides Exit strategy (i.e. how you plan to payback the investors or liquidate their investment) Partnership agreements Product / service demo Existing sales / clients

Pitch Principles Storify - Create a well paced, logical narrative….think storyboard. Disnify - Use visuals, frameworks, graphics and images…but only where they make sense…you are not keynoting a TED talk Personify - Relate to the team’s personal experiences…investors are in the people business.

Pitch Principles Simplify - Avoid too much detail, overused buzzwords and jargon…getting a term sheet after the first meeting is not the goal. Quantify - Show how you make money for the investor. Verify - Can you finish this sentence? “As evidenced by…” Back up your claims wherever you can with visible proof

Pitch Timing As a general rule, a pitch should take between 10 to 20 minutes. Shorter is better. If you cannot convey the real problem, the attractive market, your unique advantage, and the compelling investment in a short amount of time… You will lose the interest and attention of investors

In the End… The Investment is in You Honesty. Give straight answers to investor questions. Vision. Demonstrate your customer insight and thought leadership. Resourcefulness. Can make an investor’s dollar go far.

In the End… The Investment is in You Logic. Makes wise, pragmatic decisions quickly Drive. Genuine passion for early stage business & an ability to excite Humility. Coachable and seeks help to address weak spots

In the End… The Investment is in You Leadership. Has the ability to attract and lead a winning team Critical Thinking. Challenges assumptions Agility & Decisiveness. Cuts losses & pivots at the right time

In the End… The Investment is in You Commitment. Not just involved…sweat &/or capital invested Patience. Tolerance to the ambiguity of innovation Credibility. Well researched…uses data to back assumptions

Today’s Challenge 5 minute pitch Focus on the value proposition and your unique advantages. Support the value proposition with customer validation. Illustrate the financial opportunity based on your assessment of the market. Oh…and practice your pitch!