building a pitch deck to raise venture capital

Download Building a Pitch Deck to Raise Venture Capital

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  • #StartupStudyHall @jim_brown

    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.

    -Tim OReilly

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    Topics of Discussion

    ! How to Pitch! What to Include! Personal Experience! Resources

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    How to Pitch

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    Know Why

    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.

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    Know Your Stuff

    ! 30 minutes or 30 seconds! Key points - framing/bridging

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    Leave an Impression

    ! Theyre buying YOU! Sell your vision of a

    future state! Its NOT begging

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    What to Include

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    10 Points

    1. Elevator Pitch2. Team3. Problem4. Solution5. Market Opportunity

    6. Business Model7. Competition8. Go-to-Market9. Numbers10.Ask!

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    Elevator Pitch

  • #StartupStudyHall @jim_brown Life is unpredictable. Owning a home shouldnt be.

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    The Team

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    Founding Team

    ! 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.

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    Whats the Problem?

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    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?

    15 mins

    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!

    30 mins

    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.

    45 mins

    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.

    30 mins

    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?

    ??? hours

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    Whats the Solution?

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    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

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    Total Addressable Market (TAM)

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    Market Opportunity

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    How do you Make $$$?

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    Marketplace

    Revenue Opportunities

    ! 8-14% transaction fee ! Subscription $149+/mo (Paid by Service Providers)

    Home Manager

    ! Subscription $10-$100/mo ! Home Checkup $129+ (Paid by Homeowners)

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    Competitive Landscape

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    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.

    Home Management

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    Go-to-Market

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    Initial Market Opportunity

    Uber Generation

    Boomer Generation

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    User Demographics

    ! 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

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    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

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    Traction or Projections

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    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

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    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

    Unit Economics

    What If? ! We can cut the monthly churn

    rate?

    ! 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?

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    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.

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    Close and ASK!

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    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

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    Personal Experience

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    YOU Can Too

    ! Make a personal connection! Stay even / stay committed

    ! Best pitch / worst pitch ! EVERYONE has an opinion

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    Resources

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    Check This

    ! StartUp Podcast gimletmedia.com/episod