“Perfecting the Pitch”A Compelling Case for Investment

presented by

NJEntrepreneur.com & North Jersey Partners

MULTI-STAGE TUTORIALEnds January 31, 2010

WebinarRepeated Three Times, Archived For

Use

One on One Coaching4 Hours of Coaching

Videotaping2-3 Dates for Taping at 2-3 Locations

½ Day Time Slot to be Assigned

Copy of Videotape for Own Use

Free Posting on Capital Connections

MULTI-STAGE TUTORIALEnds January 31, 2010

WebinarRepeated Three Times, Archived For

Use

One on One Coaching4 Hours of Coaching

Videotaping2-3 Dates for Taping at 2-3 Locations

½ Day Time Slot to be Assigned

Copy of Videotape for Own Use

Free Posting on Capital Connections

CONFIDENTIALITY

Angels & VC's will rarely sign NDA in advance of Presentation

Do not Disclose Secret Sauce

Assume that Information will be seen Publicly

Review any Concerns with Intellectual Property Attorney

The Investment PitchAppeal to the Investor's Needs

Angel InvestorIndividual's Own MoneyPassion

Venture Capital FirmPool of Investor MoneyProfile of Prior Investments

Return on InvestmentReturn of Principal

Passion/Profile

Angel Investor: Personal Connection

Venture Capital Firm: Portfolio Focus

RESEARCH

Return on Investment

10x Multiple of Investment in 5 to 7 yearsPercentage of Company Given Up in Exchange for

FundingEarlier in the Venture, More Risk=Greater Reward

Return of Principal

Define Risk Appropriate to Investment Requested

Exit Strategy: Acquisition, IPOWhat Have Other Comparable Ventures Done?

What is compelling Today for an investor to say yes?Entry point of Investment that will make a difference

—as opposed to later--change in results related to investment--understand your key milestones

Proof of ConceptSeeking to Show Market Validation

Venture Stage:Prototype: Expert Opinion, Data, ResearchPre-Revenue: Testimonial, Purchase Orders, Advisory BoardEarly Stage: Trend, Scalability, Repeat Customers, Market

Validation

IMMEDIATE GOAL OF PRESENTATION:

Whet Investor's Appetite

Get A Second Meeting to Review Details

Get to Due Diligence

KEY PAGES OF SLIDE PRESENTATION

8-10 Minutes, Select Key Slides

Clear, Concise, Compelling

Cover PageProblem Being Solved

Solution Being ProvidedTechnology Being Used

Progress To DateMarket Being Addressed

Customer ProfileSales Strategy

Management TeamOutside Support

CompetitionFinancial Projections

Funding SummaryExit Strategy

SummaryContact Information

COVER PAGE

Company Name & LogoPresenter

Audience (if appropriate)Date

Define The Problem

What is the Pain You are Solving?

Who is involved?The Evidence to Support Your

Observation

The Solution

Define the SolutionExplain How the Solution will be ProvidedThe Features & BenefitsCommercialization Opportunity

THE TECHNOLOGY SLIDE

One PageExplained to a Lay Person

AudienceIts Role in the Solution

Intellectual Property (Patent, Trademark, Copyright)

Supporting Diagrams or Charts

Don't Confuse With Venture

PROGRESS/MILESTONE SLIDE

Key Factors that Impact Venture Growth

What Have You Accomplished, Where Are You Going

Revenue Year to Year Projections (5 years)Expansion of Management TeamKey Hires such as Sales Team

Addition of Number of Customers

Grid,Time line or Chart Works Well

Keep It Real!!Ability to Communicate Your Understanding of the

Factors that Impact Your Business

MARKET SIZE

Quantify the SizeWhat is Addressable Market?Identify the Initial Target Niche

Explain Expansion Opportunities

Offer Visuals

Cite Research & Evidence

CUSTOMERS

Explain Your Understanding of Your Customer

Description of End User PainCurrent Profile

Market SegmentsFactors that Influence the Customer

Strategies Associated with Penetrating Market Segments

Changing Profile of Your Customer with Expansion

Sales Strategy

Direct v. Channel

Direct:Expansion of Sales StaffSales CycleTarget Purchaser

Channel:PartnersScale & SizeDivision of Territories

Strategic Partners (if any)

Management Team

Communicating that IT is not ALL ABOUT YOU

Understanding Scalability & Infrastructure Building

CurrentTitles & Bios

Relevancy to Current Venture

Entrepreneurial Experience

FutureExpansion Needs

Timing

Outside Supporting Resources

Advisory BoardArea of ExpertiseName & TitleRelevance to Venture

Law FirmReputable Background in

Venture Funding

Accounting FirmRarely Sole PractitionerBackground in Industry

Competition

DirectSame Targeted Customers

Solving Same Painsimilar Product Features & Benefits

IndirectPain Solved by Product/Service that is

Tangential

FutureWhere will Competitors Emerge from

Financial Projections

1 to 5 years1st Year: Monthly2nd & 3d Years: Quarterly4th & 5th Years: Annual

Key Assumptions: Ratios, Margins, Factors Impacting Growth

Key Milestones: Break even Sales AccelerationChange in Cost Structure

Funding Summary

Personal FundsFamily & FriendsCurrent Round

Future RoundsConditions Foreseen

Use of FundsPrior Funds Used Most OptimallyKey Future Use with Greatest

ImpactMilestones that will be Passed

Exit Strategy

Acquisition

IPO

Time Frame

SUMMARY

For Investor, Why is Now the Right Time, Right Venture?

Dramatic Impact on Venture of New Funding

Evidence to Support Level of Confidence based on Prior ResultsFulfilling Investor's Needs: Passion,

Profile, ROI, Return on Principle

CONTACT INFORMATION

LogoNameEmail AddressPhone NumberAddressWeb Site

For More information about this tutorial, contact:Jeanne Graywww.NJEntrepreneur.comjgray@NJEntrepreneur.com

This Program has been funded in whole by funds from the US Department of LaborEmployment and Training Administration.