The Plan, Powerpoint, Elevator Speech: Pitching Your Ideas I2V Workshop ATMC, UMass Dartmouth October 20, 2006 Lee Hower

2 Always in Pitch Mode Great Entrepreneurs are Constantly Selling Selling yourself as a business partner and leader to prospective team members Selling your idea and team to potential investors and financing sources Selling your products and services to customers and distribution partners Selling your enterprise to eventual acquirers

3 Entrepreneurs’ Arsenal for Pitching Pitching Tools Executive summary Business plan Powerpoint slide show Elevator speech Audiences Investors / financing Customers Hiring / recruiting Strategic partners Consider audience and context carefully, pick the right tool for the job

4 What is it? 2-5 page document which highlights a full business plan Needs to be useful as a “standalone” piece of info Often excludes highly sensitive information, permits wider distribution When you use one? Snapshot for a potential investor – often first impression Written intro to team members, customers, or partners to your company What’s critical to include? Market opportunity, product description, key innovation(s), team How to get a hold of you Executive Summary

5 Business Plan What is it? page document which serves as a longer term road map More complete and detailed information about company history, current status, and future strategy When you use one? Financing partner w/ some familiarity requests more information What’s critical to include? Deeper analysis and supporting data for contents of exec summary Info on IP, sales & marketing strategy, projected financial model, competition, possible exit strategy Funding needs, both today and in the future

6 Business Plan – The Nitty Gritty Market Opportunity  What’s the pain point you can help solve? Product / Service  What can you offer and how does it address the pain? Innovation  What are the key innovations in technology or business model than enable your solution? What IP or other barriers to replication exist? Market Sizing  What’s the scope of the market? How fast is it growing? How is it segmented? Sales & Marketing Approach  How will you reach customers? What’s the pricing structure and profit margins? Financial Model  Any historical financials? What are the projected revenues and expenses for the next 3-5 years? Team  Bios of key members. What’s the hiring plan for additional staff? Funding Needs  What money has gone in thus far? How much do you need today and what will you achieve with it? What might you need in the future? Exit Strategy  What are likely scenarios and why? What similar companies have been acquired, gone public, etc recently?

7 Slide Show What is it? Deck of slides as a call to action (invest in our company, buy our stuff) Often used in the context of presenting to a group of several people When you use one? Pitching a group of investors, usually further along in the process Selling to customers and partners What’s critical to include? Relevant appendices Graphical elements Time for Q&A

8 Elevator Speech What is it? second verbal pitch about your company A “teaser” to prompt some type of follow-up When you use one? Providing a verbal intro to a range of audiences Always a first impression Usually presented one-on-one to a busy person What’s critical to include? Drop a compelling “nugget” How to follow-up (usually action on your part)

9 Case Study – The “Tube” Backyard BBQ Investor Slide Show Elevator Speech Business Plan + Other Materials

10 The VC Process – PJC Example Sourcing Investment Opportunities  Elevator speech Initial Screening  Exec summary First Meeting  Powerpoint slides Request Additional Information  Business plan Present to Full Partnership  Powerpoint slides Due Diligence Negotiate Investment Terms Closing

11 Suggestions for Successful Pitching Be Prepared  You never know when pitch opportunities will arise Be Assertive  Take your opportunities when they present themselves Be Focused  Get the info across that’s important and identify next steps Be Honest  Optimism and energy is essential, unrealistic messages unhelpful Leverage Yourself  Solicit feedback and input from others on your pitches, use your network to expand the opportunities to pitch