building a pitch deck to raise venture capital
Post on 22-Feb-2017
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Money is like gasoline during a road trip. You dont want to run out of gas on your trip, but youre not doing a tour of gas stations.
Topics of Discussion
! How to Pitch! What to Include! Personal Experience! Resources
How to Pitch
To Enlighten and Empower HomeownersWHY Haven enlightens and empowers homeowners, so they can spend less time worrying about their home and more time doing what they love.
WHAT This allows us to provide timely DIY recommendations as well as transparent pricing and easy scheduling for homeowners who prefer outside help.
HOW We do this by sourcing data about each individual home and using anticipatory technology to surface all the relevant things needed to take care of it.
Know Your Stuff
! 30 minutes or 30 seconds! Key points - framing/bridging
Leave an Impression
! Theyre buying YOU! Sell your vision of a
future state! Its NOT begging
What to Include
1. Elevator Pitch2. Team3. Problem4. Solution5. Market Opportunity
6. Business Model7. Competition8. Go-to-Market9. Numbers10.Ask!
#StartupStudyHall @jim_brown Life is unpredictable. Owning a home shouldnt be.
! Industry: Peter Korda President Scotts Lawn Services, GM Sears Home Services
! Industry: David Kerr VP of Ecommerce Angies List, VP of Home Services Groupon
! Marketing: Shawn Schwegman VP of Marketing Overstock.com, CMO at ChaCha
! Finance: Steve Fouty Exits: Software Artistry, ExactTarget, Compendium, Emerging Threats
! Legal: Greg Grove Much Shelist, P.C.
AdvisorsJim Brown, President Led sales and business development at Compendium, acquired by Oracle. Top account executive at Slingshot SEO, earned #58 ranking on Inc. 500 fastest growing private companies.
Joe Wanninger, Marketing Co-founded Orbis Education, maintained P&L ownership while securing $35MM in equity financing. VP of marketing at Chancellors Learning Systems.
Craig Sturgis, Product Built behavioral predictive analytics platform at Smarter Remarketer. Started career at Aprimo, acquired by TeraData.
Whats the Problem?
How We Manage Homes TodayRemember
When was the last time I changed the furnace filter? How many yards of mulch do I need? What color paint is in the kids room?
DiagnoseToilet wont stop running... cant get rid of dandelions in the yard... warm air is coming out of the vents... You remember what your dad taught you, right? Good luck!
FindSearching Google, asking friends and family on facebook or neighbors on Nextdoor, or reading review sites, theres no shortage of places to find opinions on service providers.
CallAlright, youve narrowed down your list to three and now you want estimates. Be ready for voicemails, missed calls, and answering the same question multiple times... That is, if you know the answers.
HopeWill the service provider call ever call back? Will they give me a reasonable estimate? Will they complete the job when I can be home? Will they do it right? Why are they asking for cash upfront?
Whats the Solution?
Centralized projects, tasks, and/or reminders with ability to assign to spouse or service provider. A virtual manila folder containing
preferred providers, preferences, warranties, model numbers and
paint colors. Personalized, relevant and timely recommendations.
Home services dynamically priced based on known data about the home
and pre-negotiated with providers.
The more you use Haven, the more it learns and the better it can anticipate your future needs.
Two way communication with your personal home manager via phone,
email, or SMS.
Your Entire Home... In Your Pocket
Total Addressable Market (TAM)
How do you Make $$$?
! 8-14% transaction fee ! Subscription $149+/mo (Paid by Service Providers)
! Subscription $10-$100/mo ! Home Checkup $129+ (Paid by Homeowners)
Competitive Segments Lead Aggregators Vertical Marketplaces Horizontal Marketplaces
Revenue model: subscription, advertising or cost per action (most commonly cost-per-lead)
Revenue model: commission or transaction fee (for contracted services) or pure e-commerce (for work that is done on behalf of the provider). Focused on a specific market (cleaning, lawn care, painting, etc.)
Revenue model: commission or transaction fee based on work that is contracted inside the system. Focused on wide range of different markets.
Initial Market Opportunity
! 66% are college educated ! 73% are between 25-54 ! 76% are married ! 60% are male ! 69% of homes are valued
over $150,000 ! 34% have household incomes
over $100,000 ! 67% have been in their home
more than 5 years
User AcquisitionLaunch Growth Maturity
Referral incentives to existing users (in app badges, social sharing, neighborhood advocates, Haven Bucks)
Geo-targeted content marketing with social distribution (both paid and unpaid)
Customer lists from service providers
Public Relations media outreach Events and local sponsorships
Door-to-door and yard signs Outbound Advertising (direct mail, television, out of home, display advertising)
CraigsList and other low- or no-cost online advertising platforms PPC and affiliate
Partnerships: realtors, home builders, utility companies, national partners, homeowner associations
Traction or Projections
Summary Projected Financials
2014 2015 2016 2017Revenue $14,703 $1,059,443 $8,319,332 $21,168,090
Total Operating Expenses $482,805 $2,955,950 $7,913,704 $12,568,999
Sales and Marketing $102,692 $1,459,658 $5,333,405 $8,794,334
General & Administrative $380,113 $1,496,291 $2,580,299 $3,774,664
Operating Income (loss) ($468,102) ($1,896,507) $405,628 $8,599,091
Net Income (loss) ($466,332) ($1,879,983) $397,534 $6,545,986
Model What If?
Customer Acquisition Cost $14.00 $10.00
Monthly Churn Rate 8% 4%
Average Annual User Spend $1,250 $2,500
Average Commission Rate 10% 11%
Average Monthly Revenue per User $10.42 $22.91
Home Manager Subscription $0.00 $10.00
Average Months as a Haven User 12.3 21.5
LTV of Average User $128.17 $707.56
What If? ! We can cut the monthly churn
! We get involved in more complex transactions like decks, basements and kitchen remodels?
! We can add meaningful monthly recurring revenue for Home Manager product?
! We layer in the rewards of our knowledge and not just our data?
What Have we Accomplished?
In just six weeks after our mid-April Indianapolis launch, 733 homeowners created accounts.
Of those, 76% have returned and spent nearly four minutes in the app per session. Weve processed more than 100 service orders
with an AOV over $145.
Close and ASK!
The Best is Yet to ComeCurrent Financial Information! Stage: Seed with working product
and active customers ! Capitalization: $1,025,000 convertible debt ! Monthly Burn: $90,000
Investors! Elevate Ventures ! Innovate Indiana Fund ! 14 Individual Angels ! 2 Co-founders ! You?
Term Sheet Summary! Raising $2MM ! 10% available option pool ! 1X liquidation preference ! Series Seed given same rights as
next series of Preferred Stock ! Pro rata participation right ! Indiana VCI Tax Credit
YOU Can Too
! Make a personal connection! Stay even / stay committed
! Best pitch / worst pitch ! EVERYONE has an opinion
! StartUp Podcast gimletmedia.com/episod