pivotal tribe (meetup) pitching for investment
DESCRIPTION
PPT for the MeetUp session on the 10th September 2013. Key thoughts on fundraising to angel investors, as well as an outline of the new D RISK IT app that will feed into that space.TRANSCRIPT
• Fundraising Top Tips •
“Getting entrepreneurs ready to talk to investors”
> Background <
1 EIS Investment & 2 ‘sweat’ equity Investments (but I’m not an angel)
‘Program’ accelerators (Founder Institute, Seedcamp, Oxygen)
WeKlik (broker/intermediary, investment ready, fundraising, NED)
Angel Groups (Networks & Clubs)
Keiretsu Forum (Angels, HNWs, Family Offices)
Beer & Young (growth / expansion corporate finance for £1m – 20m T/O)
“For every VC pitch meeting that results in an investment,
there are 399 others that conclude with the dreaded words,
“Thanks for coming in, we’ll get back to you if we’re
interested.” Given those odds, delivering a successful pitch
means that virtually everything needs to come together in
perfect harmony and any one misstep, no matter how small,
can derail the process.”
(David Rose, CEO of Gust)
• A Very BIG Problem •
• And also …. •
…. You have to do all this stuff at the same time.
• The Approach •
It’s a different landscape with its own language (IRR, deal flow, exit multiple, pre-money valuation, etc.).
95% + of businesses approaching investors ….FAIL. No guarantees. Many don’t get to the deal negotiation stage.
… And we are in a recession! It’s bloody hard.
…. But
• Ways To Get Funded •
Accelerators are good – provide validation and better chances of funding.
Stand and pitch events – very hard. You have to be one of the best deals around.
Access via email – Direct or via an intermediary.
Tell an ‘investment story,’ not a business outline
Helpful intros. A short tag lines & elevator pitch. For
example, DRI’s is …- “A deal MOT tool for startups” … or …
“Getting entrepreneurs ready to talk to investors”
- A smartphone app to help startup entrepreneurs around the
world prepare and test their investment deal before
approaching business angel investors.
Executive summary & PPT … It’s ultra important to
get your ‘short docs’ focused (they are your foot-in-the-door)
• Some Very BIG Tips •
• Key Concepts in Fundraising •
VALIDATION
TRACTION BENCHMARKING
- Talk- Interact- Results
Investment Ready
Deal Ready Fund Raising
DocsStory Access
Early Sales Bite
CredibleComparisons
• Validation •
What do we mean by validation? Proof of external interest
Why validate? Because it helps answer the question, “who else believes in your product/service?”
Do some audience / customer testing – preferably before you spend lots of money and build
How? Research, surveys/questionnaires, registrations, downloads, closed beta, a trial … or any other approaches
Validation done? … Now get some ‘traction’
• Benchmarking •
What do we mean by benchmarking? … “Comparing yourself with existing data”
Benchmark what? Search marketing, marketing & promotions ROI, financial projections, costs, etc…
Why benchmark? Because in the absence of your own data you can compare /contrast and have a relatively credible conversation with investors
Where from? Your past experience or someone else’s (perhaps from an advisor / mentor, or an agency?)
• Some Turn Offs •
The information overload: “Here’s all our data (50 pages & 4 attachments), tell us what you think.”
The information drip feed: “Here’s the biz plan, finances will be ready next week.”
No start-up experience but plenty of blue chip CV.
Everything outsourced (common MBAs approach). “We have selected an agency to manage our sales.”
Opportunity greatness overrides all other considerations.
Flowery, vague, over spun, hyped up, dressed-up and totally entangled with ‘marketing speak.’No acknowledgment of possible uncertainties or weaknesses.
No early chunky salaries (be exit motivated).
• Some Turn Ons •
Skin in the game (not sweat equity but actual receipts)
Scalability
Traction
Benchmarking
Burning lean
Past similar success
Humility
A ‘sales’king or queen.
• D Risk It - Overview •
Why ‘D RISK IT’?
A lack of good quality simple advice on how to prepare & configure a deal before taking it to angel investors
Nobody teaches you this stuff. You’re on your own for your first fundraise
Setting a valuation can be fearful territory for some. But DRI suggests a typical value from which you can haggle
• D Risk It •
FEATURES: 3 modules … Configurator (Investor ROI / Exit) Rate My Deal (7-Stage deal review – the MOT)
1) Market Validation 2) Progress & Traction 3) Other People 4) Your Experience & Commitment 5) ROI Predicted 6) Exit Development & Prep 7) Articulation of the Business Plan & Case Valuator (Valuation Tool)
BENEFITS:
Put your best foot forward by not talking too early
Maximise your chances of getting into a deal conversation
VIDEO …
> D Risk It < …Coming soon
A smartphone app for entrepreneurs
and company founders, to get their
investment fundraising on track
www.drisk.it
Crowdfunding (rewards) …
www.crowdbnk.com
• Contact •
Aristos Peters
Web: www.drisk.it
Twitter: @DRisk_App
Blog: http://weklik.wordpress.com
Email: [email protected]
Mobile: 07798 867756
‘D RISK IT’ is crowd funding
www.crowdbnk.com