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Making A Good Investor Pitch Christos Mastoras
Transcript of Making A Good Investor Pitch Christos Mastoras
Making A Good Investor PitchNovember 22, 2015
Dubai, UAE
Executive, entrepreneur and investor based in Dubai with over 17 years of experience in the technology, media and telecom
industires in the US, Europe and MENA; 8+ years in the UAE; operating, consulting, startup and venture capital experience – with
expertise in digital media, e-commerce, tech investments, business development, partnerships, M&A and new ventures in MENA
Founder and Managing Partner of Iliad Partners, a new early stage tech venture capital firm based in Dubai.
Director of Business Development of Yahoo Maktoob (2011-2014): Led strategic partnerships across MENA for the largest digital media
portal in the region at the time; closed over 20 strategic deals with media groups, internet companies, telecom operators, e-commerce
players and government agencies. This included leading players such as MBG Group, Al Jazeera, Amazon, STC/Intigral and the State of
Qatar, as well as a network of partnerships with promising startups – including UTURN, PropertyFinder, Souqalmal and Istikana.
Management consultant with Booz & Company (2007-2011): Leading teams as an Engagement Manager in Communications, Media &
Technology practice in Dubai. Advised C-level and Board-level clients corporate strategy, M&A, investment strategy and business
development projects with telecom operators, media companies, ICT authorities and investment groups in Middle East, Africa and Asia.
Actively involved in multiple startups as a co-founder, investor, Board member and management executive:
◦ In 2012, co-founded and seed invested GlamBox.ME, a MENA e-commerce startup with $4M in funding from MBC Ventures, STC
Ventures and GCC private investors. Christos is currently on the Board of Directors of GlamBox and served as Chairman 2013-2014.
◦ Earlier, in 2002-2005, he was the Commercial Director and a shareholder of Upstream, a Greek mobile advertising start-up (exit via
MBO). In 2000-2001, he was early team member at GovWorks.com, a New York-based internet startup with $60M in funding from KKR
and Mayfield (acquired by First Data Corporation). He is an advisor and angel investor in several startups in MENA.
Mentor/judge with MIT Enterprise Forum (MITEF), Endeavor, ArabNet, Flat6Labs, Wamda, Young Arab Leaders, Startup Weekend.
Ambassador of the MIT G-Lab Program in Dubai. He participated in Startup.com, a film about the rise and fall of an internet start-up in
2000, and more recently in Stars of Science, Qatar Foundation’s TV program for young innovators.
MBA from MIT Sloan School of Management and a B.S. in International Relations from Georgetown University.
Quick Intro: About me
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Iliad Partners is a new early stage tech venture capital firm based in Dubai – filling the big funding gap between the large VC funds, and the incubators / accelerators / angel investors in the MENA region.
We target investments in early stage startups (Series A as well as Late Seed and Series B) in the tech and digital sectors in the MENA region with tickets typically ranging broadly between $500K and$2M.
Investment scope – digital ventures in sectors we know well and in which we see white spaces, including: internet services, digital media, mobile applications, e-commerce enablement, fintech, software-as-a-service and analytics, and enabling technologies, in both consumer (B2C) and enterprise (B2B) segments.
We seek to be actively involved with our investments to add value via our expertise and global / regional network: access to KSA market and big media/digital players, to enable growth/scale across MENA region.
We can enable startups to expand globally, beyond MENA via our access to Silicon Valley, MIT and global markets. Our network is global with advisors, partners, co-investors in 13 countries and 19 cities.
Quick Intro: Iliad Partners
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“Entrepreneurs Investing In Entrepreneurs”: We believe entrepreneurs are best served by those who have been in their shoes. We are a team of experienced entrepreneurs and operating executives. Unlike other MENA VCs, we have built startups as founders before –(e.g. GlamBox) therefore, we know the challenges of growing startup companies and are best positioned to help startups succeed.
Digital Media Experts: As former senior executives at leading companies (Yahoo, MBC, Booz, McKinsey, Microsoft, Skype, Facebook, LinkedIn), we have deep domain knowledge of the tech sector and strong understanding of the digital space. We understand the trends, the white spaces, what it takes to scale and make a product/service a success – in the internet, digital media, mobile spaces, and beyond.
Veterans of the MENA region: We have worked across MENA markets at a senior level – with CEOs and Boards, with investors and entrepreneurs. We have launched companies, deals, products and services in UAE, KSA, Qatar, Lebanon, Jordan and Egypt. We are well connected with leading players in MENA and know how to navigate local realities on the ground – we understand the MENA region well.
Globally Connected: We have extensive experience in global markets and international innovation hubs in the US, Europe and MENA. We are well-connected to leading academic institutions such as MIT, large tech corporates such as Yahoo and Google, innovation hubs (Silicon Valley, Boston), new up-and-coming startups in MENA and beyond, and past startup success stories (e.g. Maktoob, Upstream) whose alumni are now creating the next generation winners in high-tech – we are a bridge to Silicon Valley, MIT and global markets.
Collaborative in our Approach: Having been entrepreneurs ourselves, we take pride in rolling up our sleeves and doing real work. We’ve experienced the same challenges that founders are facing, and are able to help them succeed. We operate at a rigorous, high-quality standard, yet are humble and collaborative. Building on our reputation in the market, we want to be approachable to entrepreneursand aim to partner with seasoned entrepreneurs, working side-by-side with peers. We want to bring a new ethos to the VC industry.
Iliad Partners –Who we are
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www.iliad-partners.com
1. Introduction
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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1. Introduction
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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The MENA tech startup landscape is developing rapidly
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Yahoo’s acquisition of Maktoob
(Jordan) for $164M in 2009 was the
beginning. Since then, we’ve seen
more exits to international players:
– Talabat (Kuwait) sold to Rocket Internet for
record-breaking $170M in March 2015
– GoNabit (UAE), acquired by LivingSocial in
2011
– Zawya (UAE), sold to Thomson Reuters for
$40M in 2012
– Yamli (Lebanon), technology acquired by
Yahoo
– Cobone (UAE), sold to Tiger Global for $40M
in 2013
– Diwanee (Lebanon), acquired by France’s
Webedia in 2014
– Shahiya (Lebanon), sold to Japan's Cookpad
for $13.5M in 2014
– SySDSoft (Egypt) acquired by Intel in 2011
Awareness and support for
startups, nascent until recently,
is now developing rapidly
Organizations such as the MIT
Enterprise Forum, ArabNet,
Wamda and Endeavor are actively
supporting startup competitions
and acceleration initiatives
Governments are investing in new
tech cities, university curricula, free
zones and innovation programs
Incubators – such as Flat6Labs,
Bader, Oasis500 and Berytech –
are actively helping startups at the
ideation and seed stages
Shared co-working spaces, such as
Impact Hub and AltCity now
provide a fertile ground for startups
Investment activity for MENA’s
startups is increasing
Over 200 investments were made
between 2009 and 2012
2.5x increase in funding sources
since 2008
While very few funding sources
existed 5 years ago, now there are
over 50 incubators, accelerators,
angel investment networks,
venture capital funds and crowd
funding platforms in MENA
Growing Entrepreneurial Ecosystem Expanding Universe of Startups More Funding Activity Increasing Exit Opportunities
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There are a growing array of tech
startups in MENA led by a new
generation of well-educated founders
and experienced, talented teams
Startups in spaces such as digital
media, mobile, analytics, and e-
commerce, among others, are
emerging to build new companies to
fill the gaps, address local needs and
scale them across MENA
Indicatively, the MIT Enterprise
Forum which promotes MIT-style
entrepreneurship via its annual
Startup Competition has been
attracting more than 4,000
applications a year
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Source: Wamda Research, Wamda, Arabnet, TechCrunch, MITEF Pan-Arab
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However, gaps in the VC industry persist
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Source: Wamda Research, Abu Dhabi Media Summit, Wamda, Atlantic Innovation Forum, Arabnet, Iliad Partners
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Overall Lack of VC Funding
Gaps in Larger Investment Ticket Sizes
Gap in Early Stage Capital –“The Missing Middle”
Lack of Follow-on Funding –Series B, C and beyond…
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Access to Global Expertise & Capabilities
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Ability to Facilitate Exits 8
Access to Local Talent
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Limited Value-Add by Investors
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It is your chance to get on investors’ radar – get them interested in your startup…
However, investors’ time and attention span is limited – need to be focused / to the point
It’s competitive out there – many startups pitching for limited funding
So you need to well-prepared and differentiate yourself from others
A good investor pitch can eventually lead to funding for your startup
So, why is an investor pitch important?
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1. Introduction
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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The Purpose of the Pitch Deck
Purpose of your investor presentation is to provide a brief yet compelling overview of your idea / startup
It is not meant to answer all possible questions nor meant to secure an investment
Objective is get investors interested, open their minds to your vision and get them excited to know more
Give enough information to grab their interest, but not too much as to overwhelm them or lose clarity and focus in your story. The story in your deck should engage them to start filling in the blanks for themselves
Focus on showcasing the strength of your team, your product and the vision to execute your plan
Preparing the pitch deck
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The Components of a Pitch Deck
1. Elevator Pitch: short + memorable summary of your vision / value proposition2. Market Opportunity: market size, market growth, target customers3. Problem & Current Solution: the problem you are solving / current solution4. Product: your solution and value proposition5. Business Model: how do you generate revenues6. Strategy & GTM approach: how will you reach and sell to the customer7. Momentum, traction and expertise: key milestones, traction, success stories8. Team & Key Stakeholders: founders, team, advisors, investors, Board9. Financials: 3-5 year financials including key assumptions10. Competition: competitors and your differentiation - competitive advantage11. Investment: the ask for funds & intended use of funds12. Optional: exit strategy, partnerships, product demo, existing clients, etc.
Preparing the pitch deck
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Style / Other Tips for the Pitch Deck
Compelling decks are:
◦ Brief and concise◦ Tell a story◦ Are visual◦ Have numbers◦ Accuracy◦ Not more than 10-15 slides
Preparing the pitch deck
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1. Introduction
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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How Do You Deliver a Successful Pitch?
Be prepared – practice, practice, practice (and know your facts)
Be clear, focused and brief – focus on key messages you want to deliver and avoid excessive detail
Tell a story – your story
Start with a “hook” – to get people’s attention
Pace yourself – don’t rush and don’t clutter the audience with information
Reference things people know and understand / use analogies (and validate what you are saying)
Try to create an emotional connection with your audience – know your audience
Eye contact, posture, body language
Use your deck as a reference point, but don’t refer to it constantly
Be confident but not arrogant
Use humor (selectively)
Stay within target timeframe
Strong closing
Tips for good delivery
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1. Introduction
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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How to handle investor questions
Be prepared – know your business and the market
Know your audience – try to anticipate their perspective and their questions
Have data and be specific
Again, be concise, clear and brief
Answer the question that is being ask (not another one)
If you don’t know the answer to a questions, be honest – investors hate when people fudge answers
If a weakness is identified in your idea/company – admit it, say what you’ll do to address it and move on
Be respectful – don’t be dismissive of questions
Try to close on a positive note
Tips for handling investor questions
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1. Introduction
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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What to Avoid
Too many slides, too much information
“Wordy slides”: Follow Guy Kawasaki’s 10/20/30 Rule of Power Point for slide design. 10 slides / 20 minutes to present the slides / 30 point font or greater
Too many product details, or too many financial details
Wrong data – lack of accuracy – false or misleading information
Belittling competitors
False/silly assumptions you can’t back up or don’t have data on
False confidence or arrogance
Common mistakes to avoid
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1. Introduciton
2. Preparing the Pitch Deck
3. Delivering a good pitch
4. Managing investor questions
5. Common mistakes to avoid
6. Discussion and Q&A
Agenda
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