Selling your story

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description

Getting funded sometimes seems like a career itself (and indeed it is a big part of the CEO’s responsibilities). In order to succeed, need to understand both the rules of the game and the equipment – without these you may squander some of your most valuable resources - time and relationships. Two keys communication tools are the Executive Summary and the PowerPoint Presentation (Pitch Deck). This forum will help you understand how these tools are used to generate a face-to-face meeting, make a persuasive and memorable presentation, and then follow through with the details needed for investors to begin their due diligence process.

Transcript of Selling your story

  • 1. Hall & CompanyTHANKYou to our SponsorsSPONSO Thank YOU TO OUR
  • 2. SELLING YOUR STORYTom Miller, Persuasive Business Plans J.J. Richa, Trenchant Ventures, LLC
  • 3. STORY is KEY
  • 4. In preparing forbattle I have alwaysfound that plans are useless, but planning is indispensable
  • 5. Think it Through!
  • 6. CAN YOU MAKE, MARKET, AND SELL? WILLPEOPLEBUY IT? CAN YOU DEVELOP IT?
  • 7. YOUR SALES TOOLKIT And Financial Model
  • 8. BEGIN WITH THE PROBLEM 05Can you ever have enough storage on yourdigital media or can they ever be fast enough?
  • 9. BETTER, CHEAPER, FASTER 10Our patented blue laser diodes can dramaticallyincrease capacity and decrease transfer speeds.
  • 10. MARKET SIZE & REVENUE MODEL 19The market for these components in optical storage and communication exceeds $4.0 billion per year. Well tap into this market through licensing, distributors, and direct sales.
  • 11. THE TEAM IS CRITICAL 24Our team has profitably produced red diodes for the past 5 years.
  • 12. WHAT DO YOU NEED? 34To date, weve raised $6 million at a $24 millionvaluation. Blue Light is seeking $5 million to finishour R & D and ramp up sales and marketing efforts.
  • 13. PowerPoint is the Illustrations
  • 14. 12 slides is all you need1. Cover Page 7. Customers/Revenue Introduction Model2. Overview 8. Go to Market3. Problem 9. Competition4. Market 10. Financials5. Team 11. Milestones6. Technology 12. Summary Solution
  • 15. Company NameBrief Business Description / Tag Line Presenter Name and Contact Info Good Example: Autonomy Dominates Enterprise Search
  • 16. Overview Who are you? What is your role at the company? Why are you here? (i.e. how much you are raising?) How long have you been in business? How much have you raised and from whom? What are some major milestone reached so far? An investor wants to know why he/she should belistening to you. This is a good place to summarize the status of your company
  • 17. The Problem What is the problem you are solving? Describe the pain points you are addressing Quantify the pain and how deep it is Why does the problem exist? Why has no one solved this before? What barriers exist? Why are you addressing them? What advantages do you have in solving this problem?You want an investor to understand that your company issolving a problem that really exists and that you have the qualifications to solve it
  • 18. Market Size How big is the problem you are solving? Can you quantify it? Use a Bottoms up approach Are there any references?Investors want to know that this is a good opportunitythat they can build a big business around. You need to show that the market is significant enough.
  • 19. Team List key team members and brief history Highlight former work together and the length of the professional relationships Highlight former startups or corporate experience Emphasize successes and/or relationships obtained that can be leveraged as potential customers, advisors, or future acquirers. Especially highlight experience in venture backed companies with successful sale/IPO Are there any gaps in your team that this funding will help to fill? Indicate total amount of FTEs In this slide, you want to show why you are relevant.Link the teams skills/experience to the problem you aresolving. No need to go too deep except to answer above points plus any name-brand affiliations that addcredibility. Add Board Members and existing investors to add credibility and references.
  • 20. Technology/Solution What stage are you at? Pictures of your product / technology in action Screen shots of your software (if applicable) Infrastructure before/after your technology is implemented Visual/chart on how your technology works Say what your primary product does (e.g. XYZ will enable virtual environments to be used for project sharing across different countries.) Say how this is an improvement (e.g. This will allow for an average time savings of 30 minutes/day for every FTE.) You willtechnology defensible? what your solution does Is your want to focus more on vs. how it does it. Talk about the benefits - not justfeatures, and dont go too deep on technical details unless the investor shows a real interest or asks.
  • 21. Customers/Revenue Model Who are your customers? Define verticals Identify existing clients What is your pricing model? What is the LTV of your customers? How profitable are these customers?Investors want to know who is buying your product andwhy. They also want to understand the economics of the customer and how much they are worth. Investors are interested in companies who have momentum.
  • 22. Go to Market How will you reach your customers in an economical way? What is your distribution strategy? What channels will you use? Are there key partnerships you have locked up? How are you planning to build momentum?No investor likes to spend money going to market the old- fashioned way (paying for awareness and a large direct sales force) What resources/partnerships can you use to get there faster/cheaper??
  • 23. Competition Who are your main competitors? How are they currently addressing the problem you are solving? In which key ways is your product superior? Where are your competitors in the development stage? (behind you in development or major established market players?) What direction are they moving with their technology? What IP protection do you have?An investor wants to know that you know the space very well,they are depending on you to be the expert. You need to be up and to the far right (referring to X/Y graph)!
  • 24. Financials Provide financial information for current year and previous year Provide 5 year forward looking projections Provide top line revenues, costs, and margin figures Summarize again how you plan to execute on this planAn investor wants to know that you understand howmuch cash is required to break-even and that this is agood business that they will be able to make money through their investment.
  • 25. Milestones What stage are you at? How much have you raised to date? Who have you raised from? What have you accomplished with the funding raised so far? How much are you looking for now? What milestones will you achieve with the funding you are looking for? How long will those funds last (24 months, to profitability, etc.)An investor wants to know you are scrappy and that youhave skin in the game. They also wants to know whether or not there will be additional rounds of financing.
  • 26. Summary This is the highlight of the story you are telling... What you are doing What problem you are solving Why it is such a big problem Why your solution is the best solution Why your team will be the one to succeed Why this investor is the right one for youRecap the key elements of your presentation that wouldlead the investor to believe this is a great opportunity to invest in and to bring you back for a second meeting. Dont be afraid to ask for the next meeting.
  • 27. Appendix Detailed Financials Detailed competitive landscape Detailed value/customer, cost/customer Technology/IPIn case investors have more in depth questions, you should have extra information available in the appendix section
  • 28. Presentation Delivery Know your deck own your deck Be flexible know where your slides are Dont read the bullet points have a conversation Use visuals / logos /graphics Preparation: Do your homework and know your audience Ask questions (e.g. any competing deals they are looking at?) Take notes No more than two of you should present Practice, practice, practice and let your enthusiasm and passion show!
  • 29. Sample Presentations by VCs Baris Karadogan- http://baris.typepad.com/venture_capitalist/200 6/11/pitching_to_vcs.html Marc Friend http://docs.google.com/Present?docid=dxhqvmk _18dh32shgz&skipauth=true Dave McClure - http://500hats.typepad.com/500blogs/2009/03/ how-to-pitch-a-vc-aka-startup-viagra-how-to- give-a-vc-a-hardon.html
  • 30. In preparing forbattle I have alwaysfound that plans are useless, but planning is indispensable
  • 31. And Financial Model
  • 32. External FactorsProduct / Service Implementation ResourcesOffer
  • 33. And Financial Model Income Statement Balance SheetStatement of Cash Flows