incubes presentation preparing a pitch for investors 2012 12 19

Preparing a Pitch for Investors

This is your stage and you have to direct the performance.....

If the audience doesn’t get it You are Done!

“Traction is the new king. It is all about a simple business model,

tested market fit and cross functional teams”

Summary of Paul Singh’s presentation in India

Agenda

• Meet & Greet• Introductions• Preparing a Pitch for Investors• Q & A• Future Topics

Who is your Audience?

Who is Looking For a Design Award?

Who has the most Logo’s in a Presentation Contest?

7 Steps To A Winning Pitch

1. Preparation is key2. First Impressions matter3. Embrace brevity4. Know your numbers5. Conduct market research6. Be enthusiastic but professional7. Practise makes perfect

Kevin O’Leary’s View of what makes a Great Pitch

• The founder is able to articulate their vision and the opportunity in 90 seconds or less

• Here is my idea and here is how it is going to make you rich if you invest in it

• They are able to articulate why they should be the team to execute the business plan

• The team starts to sizzle and they emerge as leaders you can invest in

TOOOOO Short .... No wayJust too short on content

• I have been a member of MLA’s Selection Committee for three years and > 80% of presenters run out of time

• A Perfect round number is ten slides• With the right content you can present in 15 ‘• If you can’t explain your business to a nine

year old, you won’t be able to explain it to an investor

11 Insider Secrets to Pitch an Investor

1. Get the talking to listening ratio right2. Be Curious3. Don’t Name Drop4. Keep so simple a 9 yr old would understand5. Have a specific objective6. Don’t take yourself so seriously

11 Insider Secrets to Pitch an Investor

7. Defend your assumptions8. Avoid grandiose, absolute statements9. Tell us the “ Hard Part”10. Don’t start on Chapter 311. Let your Passion Shine

“In Silicon Valley one in three hundred pitches get funded”

RecommendedTen Slides

For a Pitch

Market Need and Solution

• Define the problem or the market need, and outline your solution. Give “the elevator pitch” for your start-up

Company and Business Model

• Name of the Company and Organization• Products or services• How you will make money• Who pays you• Gross Margin

Product & Technology

• Define the technology behind your product or services (past, present and future development phases).

• Make sure you communicate the relevance of your product/services to market needs.

• Describe your technology patents and “secret sauce”.

Industry & Market Sizing

• Define the characteristics of the overall industry, market forces, market dynamics and customer landscape.

• The investor needs to understand the industry of your company.

• Use third party data.

Marketing, Sales and Partners

• Describe marketing strategy, sales plan, pricing and partnership plans.

• Here is also a good place for a rollout timeline with key milestones.

Competition and Competitive Advantage

• List and describe your competition. • Describe some of your company’s competitive

advantages.

Management Team

• Qualifications and roles of the top three executives and top three on your Board of Advisors

Funding Requirements and Use of Funds

• How much money (if any) has management put into the venture? (not sweat equity)

• What is the level of capital funding sought during this stage?

• What is the company willing to give in return for the investment?

Financial Forecasts and Metrics

• Project both revenues and expense totals for next three years, and past three years.

• What is the current valuation of the company?• Show breakdown and growth assumptions• No Hockey Stick graphs please!

Exit Strategy

• What is the timeframe of Return on Investment?

• What is the planned exit strategy? • What is the timeframe for the exit? • What is the rate of return expected for the

investor?

PRACTISE

PRACTISE

PRACTISE

You have until Feb 28 to PRACTISE

Remember, you are asking someone to give you

$1,000,000.00 So you need to convince them you respect their

time and interests as well

Future Topics

1. Bootstrapping a Company & Exec Summary2. Preparing a Pitch for Investors3. Accessing Capital from a Angel Network4. Terms to expect from an Investors Term

Sheet5. Forming an Advisory Board6. Pros of Cons of accessing Venture Capital too

early & some of the pitfalls to avoid

Gerard Buckley, BBA, FICB, ICD.DPresident and CEO Jaguar Capital Inc.(C) 416-884-9522(W) 416-646-6789g.buckley@jaguarcapital.ca

www.jaguarcapital.ca

@jaguarcapital @gerardbuckley