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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?