How to Pitch to a Venture Capitalist26 May 2011

• What is a Pitch?• Funding sources• Venture Capital• How to Pitch?• What to Pitch?• Conclusion

Contents

What is a Pitch?

• Clear, concise story of an exciting business; and

• All but selling your business idea.

Funding Sources

LeveragingOr

Other forms of financing

EquitySize, tenure and nature of project

Venture Capital

• Risk capital;• Investment amount from

$500,000 to $5 mil;• Second to third stage of

funding (3 -7 years);• Higher than normal return;

and• Management hand holding.

• Fundability vs Viability•Business Plan• Find the right VC •The 10/20/30 pitching

rule

How to Pitch?

What to Pitch?

• Value proposition and position in the value network

• Business model• Technology roadmap• Market and growth

strategy• Financial and valuation• Funding and utilisation• Exit strategy• Management

Value proposition

What to Pitch?

Position in the value network

Business modelWhat to Pitch?

Technology roadmap

What to Pitch?

Market and growth strategyWhat to Pitch?

Financial and valuation

• Historical - revenue, profitability and cash? • forecast & projections (trend alignment or

setter?)

• Valuation ???

What to Pitch?

Funding and utilisation

• How much is enough?

• How is it being used?

What to Pitch?

Exit strategy

• IPO?• Trade sale?• Buyback?

What to Pitch?

Management

• Honesty & Integrity• Expertise / Focus• Experience• Motivation• Commitment• High level of energy

What to Pitch?

Pitch Success = $$$• Attract• Interest• Desire• Action

Conclusion

THANK YOU

www.mavcap.comTel:03 2050 3000

email: fmpak@mavcap.com