The Anatomy of the 10 Minute Pitch - · PDF fileThe Anatomy of the 10 Minute Pitch The Problem...

Copyright 2007, Alliance of Angels

Introduction

The Anatomy of the 10 Minute Pitch

The Problem

The Solution

Sales Strategy

Partners

Competition

Traction

Advisory Board

Management

Revenue Model

{00:30 seconds}

{03:00 minutes}

{08:00 minutes }

{10:00 min.}

Financials

The Offer

Market Size

Customers


Act1: The Introduction


Alliance of Angels:

10 Minute Pitch Clinic ~ April 10, 2007

Rebecca Lovell, Program Manager Alliance of Angels

2006-07 Preston Gates & Ellis Fellow

Providing the Venue for Angel Investors and Startup Companies to Meet

Introduction


The Problem •  Define the problem and WHO has

this pain – Graphs – Pictures – Describe a problem scenario /usage case

The Problem


The Solution Overview of primary product or

service that will solve the problem

The Solution

•  Use multiple slides if necessary

•  Do not exceed time limits •  Product Photos, Screen shots •  Logical Flow and Architecture diagrams •  Short list of Feature/Benefits

Be clear about the status of

product development

6

  75-100 Million Interviews (Per Yr)

  $350 Billion Claims Related (Per Yr)

  Process is “Off The GRID”

Paper Claims File

Weeks and Months

The problem: Recorded Claims

7

  $15M Savings (Per Yr): Farmers Insurance

  24 x 7 x 365 Availability

  Giant, Untapped Data Asset

Minutes

Claims Rep Interviewees Bridge .WMA

The solution: Digital Service


Traction Slide •  Founded in 2003

•  3 full-time employees, 3 part-time

•  Released v.1 fall of 2004

•  15 Beta Users, 10 Paying customers

•  Signed up 3 channel partners

•  Received ABC certification

•  1 provisional Patent filed

•  Press coverage, awards

Traction


Questions about Act 1: the

Introduction?


Act 2: The Business


Market Size •  Build the number from the ground up

•  Total Addressable Market •  Use drivers relevant to your product

•  Show the different segments – Pie Graph works well – Explain how you prioritize the segments

•  “This is our initial market” (speak to why)

•  If you must use 3rd party figures, cite the source

Market Size


Total Addressable Market: US home broadband users

ages 12 to 34 who actively consume internet video

7

2.7

4.4

22.4

8.5

14.1

14M 2006

45M 2011

29-34yrs 18-28yrs 12-17yrs

Market Size Example


Customers •  Current Customers

–  83 startup companies like the following:

Customers

•  Potential Customers •  Early stage technology companies raising between $250K to $2M

–  Your Company, Inc. –  His Company, Inc. –  Her Company, Inc.


Sales Strategy How do you sell your product? Direct and/or Channel Sales

If Direct, •  How many sales people? •  How long does it take to close a deal? •  Who is the key decision maker? (Especially if that differs from

the key user)

If Channel, •  Who are the partners? •  How many are required? •  How are the territories divided? (If relevant)

Sales Strategy


Partners

•  Revenue share •  Content

provider •  Distribution

partner/broker

Partners

Targeted Partners


Revenue Model •  Licensed Software •  Hosted Solution, Monthly Fee + 2% of all transactions

booked through our system •  We Sell Widgets; Direct and Through a Channel •  Time and Materials

Revenue Model

Cost $650

Distributor $1750

Retailer $2000

Customer $2500

Gross Profit $1100

Avg Customer Buys 24 Widgets per year

20%

10%

Gross Margin >60%

Average Customer is worth $60,000 in annual Revenue

This is an example for demonstration purposes only


Competition •  Indirect Competition

–  Summarize the current alternatives (other technologies or types of products)

•  Direct Competitors (logos are easier to read than text) –  List competing company 1 and an analysis –  List competing company 2 and an analysis –  List competing company 3 and an analysis

•  Use a matrix if possible

Competition


Competition

Synchronization

File Format Agnostic

Distribution Agnostic

OS/Player Agnostic

File Format Agnostic

Distribution Agnostic

OS/Player Agnostic

ABC B Co XYZ


Management Team •  Name, Position

–  Prior Company, Position (VP or above), Years –  Prior Company, Position (VP or above), Years

•  Name, Position –  Prior Company, Position (VP or above), Years –  Prior Company, Position (VP or above), Years

•  Name, Position –  Prior Company, Position (VP or above), Years –  Prior Company, Position (VP or above), Years

•  Open positions –  VP Sales –  Head of QA

Management


Advisory Board •  Name, Area of Expertise

–  Company, Position (VP or above), Years –  Prior Company, Position (VP or above), Years

•  Name, Area of Expertise –  Company, Position (VP or above), Years –  Prior Company, Position (VP or above), Years



Advisory Board


Questions about Act 2: the Business?


Act 3: The Future


Five Year Projections (Millions, US)

$3M $10M

$40M

$80M

$120M

-$10$10$30$50$70$90$110$130$150

2007 2008 2009 2010 2011

RevenueIncome

Assumptions:

–  In 2010, $__ per sale

–  In 2010, __customers –  2010 market share: __ % –  In 2010, __% from new

sales; __% from recurring

–  U.S. market only –  Does not include future

product extensions

This is an example for demonstration purposes only

Financial Projections Financials


Funding Requirements Prior Funding:

- $ from founders, $ from outside investors, $ grants Current Round:

-  Seeking $1 million ($500,000 raised) -  Pre-money valuation: $2 million

Use of Funds: -  Finish v 2.0 Prototype -  Launch in xxx market -  File patents

Future rounds: - Series B of $ million expected in early 2007

Exit Strategy: -  Acquisition (perhaps Microsoft, IBM, Nike, or Gatorade)

The Offer


Why Invest •  Experienced Management Team •  Generated $x in revenue in 2002 •  Strong IP position •  Large and growing market •  Signed partnerships with key players


Questions about Act 3: the Future?

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