Pitch clinic NW
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Pitch Clinic
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How to craft an investor pitch to present to angel investors. This presentation was specifically crafted to present to the Spokane Angel Alliance and Alliance of Angels in Seattle, WA but is applicable to any angel group.
Transcript of Pitch clinic NW
Pitch Clinic
Sponsors
Noyes Limited
• GU MBA
• Startup Weekend
•Early stage consulting & advisory
Agenda
• About Angel Investing
• Anatomy of 10 minute pitch
•Coaching & Exercise
Anatomy of 10-Minute Pitch• Introduction• Problem• Solution• Traction
• Market Size• Customers• Go-To-Market• Partners• Business Model• Competition• Management• Advisory Board
• Financials• Offer
ASK
TEAS
ERBU
SIN
ESS
MO
DEL
30 Seconds
8 Minutes
3 Minutes
10 Minutes
Who Are Angel InvestorsIndividualsSuccessfulRisk-TolerantKnowledgeableBusyDiverse
Best Practices
• Highlights & key risks only• Balance depth and detail• Know & tailor to your audience• Authenticity and transparency
Introduction Exercise
• Introduce your venture in 30 words or less.
Description Analogy
XXXX is an online marketplace that connects buyers and manufacturers of specialty foods.
XXXX is the “Google Maps” of the indoor world.
When Do Angels Invest?Company
StageIdeation Seed
Stage Early Stage Late Stage
Sources of Capital
Bootstrapping Friends &
Family
Angel Investor
Venture Capital
Growth Equity
Angel-Submission Criteria
Headquartered in SpokaneEarly Growth: Seed/Series A$50-$250KHigh-growth sectorPrototype required
Angel – Screening Process
1 Introductory Meeting2 Screening Meeting3 Member Meeting4 Due Diligence
Pitch PresentationKnow Your Audience• Investor segmentation and sophistication• Needs and milestonesKnow Your Market• Competitors and comparablesKnow Your Business• Key industry drivers, metrics, and planning
Pitch Principals
1 Timing & information flow2 Authenticity & transparency3 Know investor math4 Present visual information
Importance of Visuals• Our skin enhancement
product offers the latest technology, but with an aesthetic design
• Potential customers include Nike and Google
• We protect a 40% revenue growth rate for the next two years, and 30% for three years thereafter
VS
VS
VS
10 – Minute Pitch Fundamentals
ACT 1:The Teaser
Example Slide: Introduction
Pitch ClinicBrett Noyes, Managing Director
www.noyeslimited.com
October 30, 2012
Fundamentals: Problem1 Define the problem2 Identify who feels the pain3 Illustrate the size & severity4 Make the problem tangible• Scenarios or use cases• Graphs, pictures, screen shots• Historical Context• 3rd party statistics & opinions
Fundamentals: Solution
Overview of your primary product or service
1 Make the value proposition clear• Photos & screenshots• Features & benefits• Technical detail VS user experience
2 Clearly explain status of development
Example Slide: Problem
Problem: Compounds Can’t Reach CNS
• Blood-brain barrier (physiologically limits reaching CNS
Example Slide: Solution
The Olfactory Region: Direct Pathway to the Brain
• Enables delivery of new therapeutics-including biologics• Lower toxicities-minimal exposure to blood, liver, kidneys• Rapid drug onset-direct brain delivery 2-5 minutes
Example Slide: Problem
Solution
Example Slide: Traction
• Founded in 2007• 3 full-time employees, 3 part-time• Released v.1 fall of 2008• 15 Beta Users, 10 paying customers• Signed up 3 channel partners• Received ABC certification• 1 provisional Patent filed• Press coverage, awards
10-Minute Pitch Fundamentals
Questions?
10-Minute Pitch Fundamentals
Act 2:The Business Model
Fundamentals: Market Size1 Break down the market• Total addressable market• Realistic penetration estimates• Use drivers relevant to product
2 Show different segments• Explain prioritization
3 Cite 3rd party facts & figure
Example Slide: Market Size
The Opportunity$46 billion of outdoor gear &
accessories are sold each year.
An estimated $2.3 Billion is sold off-price
Example Slide: Market Size$7.5B Total US Commission
$2B Online Buyer Commission
$500M New Home Buyer Commissions
$50M TAM
Example Slide: Market Size
Print @Home Users 40MM
Smartphone user wanting
mobile coupons 15MM
Smartphone Users 45
MM
TAM = 50MM
Example Slide: Market Size
>$600 million
X $3,000 avg fee
>200,000 providers
Fundamentals: Customers
1 Logos2 Existing Customers3 Potential Pipeline4 Nature of agreements5 Testimonials & validation
Example Slide: Customers
Post Demo• IBM• Visa• Target
Pilot• AT&T• Microso
ft
Demos• ADP• Vangua
rd• Fidelity• Wachov
ia
Qualified• Nordstro
m• Weyerha
user• Eddie
Bauer• Blue
Cross• Metlife
Total in Pipeline$886,798
Example Slide: Customers
CustomersCurrent Pipeline
Example Slide: Customers
Paying Pilots & Pipeline
•Launched in Production•1000’s of users•Paying Customers
•Reliable and Scalable•Customer Support•Patent-Pending
Example Slide: Customers
Target Consumer
• 45, single, metro• High existing beauty spend• Loves trying new products• Prefer Natural/Organic• 31% of XX target market
Fundamentals: Go-To-Market
B to B B to CDirect•How many sales people?•How long is sales cycle?•Who is key decision MakerChannel•Who are the partners?•How many required?•What is the partner’s reach?
•Traffic generation•Rate of growth•Conversion rates•Churn rate•Data on referrals
Example Slide: Go-To-Market
2. Subscription/MembershipsFilm Club MembershipEnhanced tools & apps
2 Featured films in competition each monthGlobal delivery
Leader board & rewards
$6.95Monthly
$49Annual
Example Slide: Go-To-Market
1. Distribution & Third Party/Video on Demand
Current Partners Future PartnersGoing Global
Example Slide: Go-To-Market
Going Global
Watch 4 award winning short films. Choose•Best Picture•Play trivia
Example Slide: Go-To-Market
XXXX’s Sales Strategy Relies On 3 Avenues to Reach Target Customers
Objectives Status to Date
1. Direct Sales •6 sales reps focusing mostly on urban hospitals & flagships across the U.S.
•Looking to hire first sales person•Co-founders selling to date
2. Partnerships Medical equipment mfg/clinical IT•Siemens Medical•GE Healthcare•Phillips Medical
•Currently working on interface/integration with Siemens.
3. Distributors •Develop alliances with providers of services, software and hardware to the same customer base.
•2 freshly inked distribution agreements•22 people from main to Florida
Fundamentals: Partners
1 Who are they?2 What do they provide3 What is the relationship status?4 Who are their other partners?5 What incentives do they have?
Example Slide: Partners
Licensed Partners in 35 States
Insurance Carriers:
Financial Transactions:
Example Slide: Partners
Museum Partners
Live & Selling Signed In Pipeline 27 +13 50+
Fundamentals: Business Model
1 How do you make money?• Subscriptions/Sales/Services• Unit Economics• Multiple products = multiple models• Customer acquisition vs lifetime value
2 What happens to the revenue?•COGS/SG&A•Licensing agreements?
Example Slide: Business Model
Partner Activation
Free Addition
Sales & Marketing
Premium Addition
REVENUE FLOW
Gross Revenue $1.00Partner Residuals ($0.25)
Net Revenues $0.75
Example Slide: Business Model
$.50Per Transaction
$29Per Month
$99Sign-Up Free
Customer Acquisition Cost = $480
Google CPC Lead: $80Touch Time: +400• Sales video, no demo• Self-provisioning wizard• Training video
Customer Lifetime Value = $2000
Example Slide: Business ModelWho Pays Structure Features
Malls Setup Fee
Maintenance Fee
Map CreationMap Maintenance
Malls Retailers
Flat Fee Enhanced Navigation
Malls Retailers
Flat Fee Enhanced ListingsKey Word Search
Malls Retailers Advertisers
Flat Fee
Transaction Fee
Mobile CouponsVenue Event Calendar
Example Slide: Business Model
Unit Economics
<75HP Unit
75-200 HP Unit
>200 HP Unit
ASP $5,000 $15,000 $50,000Gross Margin % 46% 55% 70%Availability Now 2011 2012
Fundamentals: Competition
1 Indirect competition & substitutes2 Direct competitors•Logo preferable to lists•Include analysis not just names
3 Matrix, grid, or posting diagram
Example Slide: Competition
Access to Resumes
Search TechnologyBoolean Labor & CostReduction
100M
10M
Company XXXX
Burning GlassPure Discovery
Dice
Job Fox
Sovern
Talent Drive
Monster
Career Builder
Talent Hook
Example Slide: Competition
Company X
ConventionalFibers
Natural Dyes
Synthetic Dyes
Organic Fibers
Example Slide: CompetitionCustomer Needs Company X Capital IQ Thomson Dow Jones
Private DataAnalyticsIntuitive UICustomizationAdv. SearchWorkflow ToolsData Depth 100% 50% 35% 30%
Example Slide: CompetitionAd-Based Discount Broker Traditional
BrokersCompany X
Main Players Company X
MLS Listings
High Rev/VisitorsHigh Margin
Focus on Search
Fundamentals: Management
• Name, Position– XX Yrs Experience or Expertise– Prior Company, Position (VP or above), Years
• Name, Position– XX Yrs Experience or Expertise– Prior Company, Position (VP or above), Years
• Open positions• Board of Directors/Advisors
Example Slide: ManagementPhil Gordon – CEO• 25+ year internet and mobile vet• Founder of Jawfish Games• Merit Scholar & Georgia Tech Graduate
Bill Kalivas – Sales & Business Development• 25+ year technology sales• Co-Founder Launchpad INW• Army Veteran
• Stephanie Schreiber – Marketing Director• 10+ year graphic design experience• 7+ year director experience• 5+ product manager experience
10-Minute Pitch Fundamentals
Questions?
<Break Time>
10-Minute Pitch Fundamentals
Act 3:The Ask
Fundamentals: The Ask
1 Present Financial Projections• 3- 5 years• Conservative
2 Use Investor Terminology• Pre-money valuation• Post-money valuation• For X percent of the company
Example Slide: Financials
Key Assumptions
Reg. Companies 576 1,776 2,988 4,080 5,208
Monthly Research 18 45 57 51 52
Monthly Sub 75 305 576 1,054 1,311
Monthly Projects 11 26 43 55 52
HCM Customers 125 325 574 814
Example Slide: Financials
2007 2008 2009 2010 2011
KPI #1 1 2 3 4 5
KPI #2 1 1 2 3 5
KPI #3 2 4 8 16 32
Example Slide: Offer
• Prior Funding– $ from founders, $ from outside investors, $ grant
• Current Round– Seeking $1 million preferred ($500,000 raised)– Pre-money valuation: $2 million
• Use of Funds– Finish v. 2.0 Prototypes– Launch in XXXX market– File Patents– Burn Rate: $XXX market
• Future Rounds– Series A of $ million expected in early 20XX
• Exit Strategy
10-Minute Pitch Fundamentals
Questions?
Coaching
• Live demo• Individual coaching/questions
Rates
10-12 Investor Slide Deck$250
1 Hour Coaching Session$75
Offer
1 Free Review (30 Days)
10-12 Investor Slide Deck$150
1 Hour Coaching Session$35
