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Copyright 2007, Alliance of Angels
Introduction
The Anatomy of the 10 Minute PitchThe Anatomy of the 10 Minute Pitch
The Problem
The Solution
Sales Strategy
Partners
Competition
Traction
Advisory Board
Management
Revenue Model
{00:30 seconds}
{03:00 minutes}
{08:00 minutes }
{10:00 min.}
Financials
The Offer
Market Size
Customers
Copyright 2007, Alliance of Angels
Act1:Act1:
The IntroductionThe Introduction
Copyright 2007, Alliance of Angels
Alliance of Angels:Alliance of Angels:
10 Minute Pitch Clinic ~ April 10, 200710 Minute Pitch Clinic ~ April 10, 2007
Rebecca Lovell, Program ManagerRebecca Lovell, Program ManagerAlliance of AngelsAlliance of Angels
2006-07 Preston Gates & Ellis Fellow2006-07 Preston Gates & Ellis Fellow
Providing the Venue for Angel Investors and Startup Companies to MeetProviding the Venue for Angel Investors and Startup Companies to Meet
Introduction
Copyright 2007, Alliance of Angels
The ProblemThe Problem
• Define the problem and WHO has Define the problem and WHO has this painthis pain– GraphsGraphs– PicturesPictures– Describe a problem scenario /usage case Describe a problem scenario /usage case
The Problem
Copyright 2007, Alliance of Angels
The SolutionThe Solution
Overview of primary product or Overview of primary product or service that will solve the problemservice that will solve the problem
The Solution
• Use multiple slides if necessary Use multiple slides if necessary
• Do not exceed time limitsDo not exceed time limits • Product Photos, Screen shots Product Photos, Screen shots
• Logical Flow and Architecture diagramsLogical Flow and Architecture diagrams
• Short list of Feature/BenefitsShort list of Feature/Benefits
Be clear about the status of Be clear about the status of product developmentproduct development
6
75-100 Million Interviews (Per Yr)
$350 Billion Claims Related (Per Yr)
Process is “Off The GRID”
Paper Claims File
Weeks and Months
The problem: Recorded Claims
7
$15M Savings (Per Yr): Farmers Insurance
24 x 7 x 365 Availability
Giant, Untapped Data Asset
Minutes
Claims Rep
Claims Rep Interview
eesInterview
eesBridgeBridge .WMA.WMA
The solution: Digital Service
Copyright 2007, Alliance of Angels
Traction SlideTraction Slide
• Founded in 2003Founded in 2003
• 3 full-time employees, 3 part-time3 full-time employees, 3 part-time
• Released v.1 fall of 2004Released v.1 fall of 2004
• 15 Beta Users, 10 Paying customers15 Beta Users, 10 Paying customers
• Signed up 3 channel partnersSigned up 3 channel partners
• Received ABC certificationReceived ABC certification
• 1 provisional Patent filed1 provisional Patent filed
• Press coverage, awardsPress coverage, awards
Traction
Copyright 2007, Alliance of Angels
Questions about Questions about Act 1: the Act 1: the
Introduction?Introduction?
Copyright 2007, Alliance of Angels
Act 2:Act 2:
The BusinessThe Business
Copyright 2007, Alliance of Angels
Market SizeMarket Size
• Build the number from the ground upBuild the number from the ground up• Total Total AddressableAddressable Market Market • Use drivers relevant to your productUse drivers relevant to your product
• Show the different segments Show the different segments – Pie Graph works wellPie Graph works well– Explain how you prioritize the segmentsExplain how you prioritize the segments
• ““This is our initial market” (speak to why)This is our initial market” (speak to why)
• If you must use 3If you must use 3rdrd party figures, cite the party figures, cite the sourcesource
Market Size
Copyright 2007, Alliance of Angels
Total Addressable Market: US home broadband usersTotal Addressable Market: US home broadband users
ages 12 to 34 who actively consume internet videoages 12 to 34 who actively consume internet video
7
2.7
4.4
22.4
8.5
14.1
14M2006
45M2011
29-34yrs18-28yrs 12-17yrs
Market Size ExampleMarket Size Example
Copyright 2007, Alliance of Angels
CustomersCustomers• Current CustomersCurrent Customers
– 83 startup companies like the following:83 startup companies like the following:
Customers
• Potential CustomersPotential Customers• Early stage technology companies raising between $250K to $2MEarly stage technology companies raising between $250K to $2M
– Your Company, Inc. Your Company, Inc. – His Company, Inc.His Company, Inc.– Her Company, Inc.Her Company, Inc.
Copyright 2007, Alliance of Angels
Sales StrategySales StrategyHow do you sell your product? Direct and/or Channel SalesHow do you sell your product? Direct and/or Channel Sales
If DirectIf Direct, , • How many sales people?How many sales people?• How long does it take to close a deal?How long does it take to close a deal?• Who is the key decision maker? (Especially if that differs from Who is the key decision maker? (Especially if that differs from
the key user)the key user)
If Channel,If Channel,• Who are the partners?Who are the partners?• How many are required?How many are required?• How are the territories divided? (If relevant) How are the territories divided? (If relevant)
Sales Strategy
Copyright 2007, Alliance of Angels
PartnersPartners
• Revenue shareRevenue share
• Content Content providerprovider
• Distribution Distribution partner/brokerpartner/broker
Partners
Targeted PartnersTargeted Partners
Copyright 2007, Alliance of Angels
Revenue ModelRevenue Model• Licensed SoftwareLicensed Software
• Hosted Solution, Monthly Fee + 2% of all transactions Hosted Solution, Monthly Fee + 2% of all transactions booked through our systembooked through our system
• We Sell Widgets; Direct and Through a ChannelWe Sell Widgets; Direct and Through a Channel
• Time and MaterialsTime and Materials
Revenue Model
Cost $650
Distributor $1750
Retailer $2000
Customer $2500
Gross Profit $1100
Avg Customer Buys 24 Widgets per year
20%
10%
Gross Margin >60%
Average Customer is worth$60,000 in annual Revenue
This is an example for demonstration purposes only
Copyright 2007, Alliance of Angels
CompetitionCompetition
• Indirect CompetitionIndirect Competition– Summarize the current alternatives (other Summarize the current alternatives (other
technologies or types of products)technologies or types of products)
• Direct Competitors Direct Competitors (logos are easier to read than text)(logos are easier to read than text)– List competing company 1 and an analysis List competing company 1 and an analysis – List competing company 2 and an analysis List competing company 2 and an analysis – List competing company 3 and an analysis List competing company 3 and an analysis
• Use a matrix if possibleUse a matrix if possible
Competition
Copyright 2007, Alliance of Angels
CompetitionCompetition
SynchronizationSynchronization
File Format AgnosticFile Format Agnostic
Distribution AgnosticDistribution Agnostic
OS/Player AgnosticOS/Player Agnostic
File Format AgnosticFile Format Agnostic
Distribution AgnosticDistribution Agnostic
OS/Player AgnosticOS/Player Agnostic
ABC B Co XYZ
Copyright 2007, Alliance of Angels
Management TeamManagement Team• Name, PositionName, Position
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, PositionName, Position – Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Position Name, Position – Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Open positionsOpen positions– VP SalesVP Sales– Head of QAHead of QA
Management
Copyright 2007, Alliance of Angels
Advisory BoardAdvisory Board
• Name, Area of ExpertiseName, Area of Expertise– Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Area of ExpertiseName, Area of Expertise – Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Area of ExpertiseName, Area of Expertise– Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Area of ExpertiseName, Area of Expertise– Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
Advisory Board
Copyright 2007, Alliance of Angels
Questions about Questions about Act 2: the Act 2: the Business?Business?
Copyright 2007, Alliance of Angels
Act 3:Act 3:
The FutureThe Future
Copyright 2007, Alliance of Angels
Five Year Projections (Millions, US)Five Year Projections (Millions, US)
$3M $10M
$40M
$80M
$120M
-$10
$10
$30
$50
$70
$90
$110
$130
$150
2007 2008 2009 2010 2011
Revenue
Income
Assumptions:
– In 2010, $__ per sale
– In 2010, __customers
– 2010 market share: __ %
– In 2010, __% from new sales; __% from recurring
– U.S. market only
– Does not include future product extensions
This is an example for demonstration purposes only
Financial ProjectionsFinancial Projections Financials
Copyright 2007, Alliance of Angels
Funding RequirementsFunding RequirementsPrior Funding: Prior Funding:
- $ from founders, $ from outside investors, $ grants- $ from founders, $ from outside investors, $ grants
Current Round:Current Round:- Seeking $1 million ($500,000 raised)Seeking $1 million ($500,000 raised)- Pre-money valuation: $2 million Pre-money valuation: $2 million
Use of Funds:Use of Funds:- Finish v 2.0 PrototypeFinish v 2.0 Prototype- Launch in xxx marketLaunch in xxx market- File patentsFile patents
Future rounds:Future rounds: - Series B of $ million expected in early 2007- Series B of $ million expected in early 2007
Exit Strategy:Exit Strategy:- Acquisition (perhaps Microsoft, IBM, Nike, or Gatorade)Acquisition (perhaps Microsoft, IBM, Nike, or Gatorade)
The Offer
Copyright 2007, Alliance of Angels
Why InvestWhy Invest
• Experienced Management TeamExperienced Management Team
• Generated $x in revenue in 2002Generated $x in revenue in 2002
• Strong IP positionStrong IP position
• Large and growing marketLarge and growing market
• Signed partnerships with key playersSigned partnerships with key players
Copyright 2007, Alliance of Angels
Questions about Questions about Act 3: the Future?Act 3: the Future?