1. Your “Financial Pitch”
Getting your financing organized
Making your “Killer Pitch-deck” PPT for Investors
Some tips, advice and secrets to think about…

2. What we will talk about today
What to think about before you think about raising money
High Concept Pitch – which comes from your Killer Pitch-deck!
What types of Investors are there?
What the Investors are thinking about you
Making your ‘Killer Pitch-deck’ ( slides to sell your story effectively!)

3. What to think about first
There is no magic formula for getting financing
Know where your “hub” or ‘cluster’ is
Pick a great co-founder
Important values - Intelligence, Energy, Integrity
Pick a big market AND KNOW IT IN NUMBERS!
Have a “Minimum Viable Product” (MVP) - be passionate about it
Iterate to Product / Market fit
Raise money from people you trust; keep control
Scale

4. Start building your ‘traction’
Test your market!
Markets are relatively efficient - so you are likely wrong at first pass
Buy ads against non-existent product to sell “Coming soon”
Talk to the customers directly
Ship immediately and often
Go for the low-end of the market as you get started! Find it, use it, own it!!

5. Learn about Investors! Trust people they have backed
Know within minutes (usually)
Market is hit-driven
Resist outside CEOs
Valuation is irrational

6. Are you sure about getting involved with Investors?
Investors demand certain types of legal structures
Exits are much harder
Usually don’t look at cash-based businesses
Committee-based strategy
Hiring pressure
Valuation is temporary : Control is forever

7. Traction talk gets the conversation started!
Traction – WHAT IS IT?
You need to tell a story with numbers
You
Social Proof
(who is involved with your business, where your product is selling etc.)
Product
Market
(What you are already doing!)
High Concept Pitch (Financial Pitch)
Elevator Pitch
Presentation (“Killer Pitch-deck”)

8. Types of Investors
Bootstrapping! (F, F, F’s) Banks Crowd-funding Angel Investors Super Angels Venture Capitalists (VC’s)

9. Bootstrapping
You should already know this!
Friends
Family
Fools

10. Banks
See Ibu Suryani in Incubator for more details!
There are banks that support Entrepreneurs and specialize in startups!

11. Crowd-funding Definition – Wikipedia Google ‘crowdfunding’
YouTube videos (there are a lot!) -
Example of business that used crowdfunding successfully -
Websites that do crowdsourcing for funding (there a many):
Crowd funding is now emerging from Hong Kong…

12. Angels Individuals who invest their own money into Startups
Generally invest a limited amount every time
Usually invest alongside other investors
High risk tolerance; often invest before proven market traction
Make quick decisions (usually within 1-3 meetings)
Often are former entrepreneurs or startup executives
Usually make between investments per year
Unlikely to care about controlling rights
Find the list of Angel investors for your market

13. Super Angels (or Micro Venture Capitalists)
Individuals or Small fund who invests other people's money into Startups
Fund size is usually in many MillionsUSA$$$
Similar investment amount as Angels (but it comes from a Fund, not personal money)
Usually invest alongside other investors
High risk tolerance; often invest before proven market traction
Make quick decisions (usually within 1-3 meetings)
Can make between 5-20 investments per year (some will do even more)
May not care for controlling rights in companies they invest in
Find the Super Angels in your market

14. Venture Capitalists (VC’s)
Members of a fund (can be between 1 and 20+ partners at one fund) who invest other people's money into Startups
Fund size varies between $300M to $4B
Generally invest more than $1M at a time
Often want to have a major portion of the round
Lower risk tolerance; rarely invest before proven market traction or in unproven entrepreneurs
Have pre-determined process for decision-making (between 3-6 weeks)
Will take board seat or retain some controlling rights in companies they invest in
1-2 investments per partner per year

15. What type of Investor should you target?
Kitchen Table – BOOTSTRAP – Family, Friends and Fools…
Research what local BANKS can do for you - new policies (women, green, social) but know what the ‘terms and conditions’ are
See if Crowd-funding will work for you
First time startup getting traction – ANGELS
First round of non-family financing – ANGELS
Once you need more than $1MillionUSA - VC’s - but make sure you have your mentor/investor relationships in place first! This takes time to build…. VC’s usually don’t meet with Entrepreneurs - and they won’t consider Entrepreneurs unless you already have used Angel investing - but they will talk with your BoD! The VC’s advise you on how to do your fundraising!
In Indonesia -
Tech Investor - Raja Capital -
More Tech Investors -
Plenty of information with Google…… :-)

16. CHALLENGE 1
Post a Google URL of an Investor for class Facebook page by the end of this day 23:59
No duplicates in information
Identify what sector the Investor works in
Identify two startups they have already invested in –
EXTRA POINTS FOR SPECIAL ASSESSMENT

17. How much money$$$ should you ask for?
Raise as much money as you need to get to your next milestone!
Make it so you can stay ‘alive’ for the next months
During this time, when you are running out of cash, it is called ‘the runway’ - like a plane, getting ready to take off!

18. This is what your Investor will want to know about you
If you are efficient with $$$Capital
If you can fulfill orders to market (Capacity)
If you already have products in market
If you have clear insight on what works
If your team is “battle-tested”
If you have concrete ideas on how much $$$ you need

19. The Investor is still thinking…
Is this a big market opportunity?
What is the problem you aim to solve?
Does your solution evince credibility?
Could I imagine wanting to use this?
How will you get distribution?
What’s the deal with the team?
How is this different from competition?
How will this make money / get mass adoption?
Are you serious on execution?

20. In your tool-kit you must have…
Great Tag Line
Elevator Pitch
High-Concept Pitch…(15-20 minutes) max
“Killer Pitch-deck” (10-12 slide Presentation) 
1-Page Executive Summary (captures all of your important information on your business – summary of your Killer Pitch-deck)
Intro (you send this to an Investor to start the relationship…)

21. Great Tag Line
Make it memorable!

22. CHALLENGE 2 RIGHT NOW + next 10 minutes! Twitter - @ZenParry
Write a summary of your business idea in less than 20 words and post to Facebook
PER TEAM – I entry!
(Hint: this is your business tag line!)
Twitter
EXTRA POINTS FOR SPECIAL ASSESSMENT

23. The Elevator Pitch “WHAT HOW WHY” Focus on the problem
Forms first impression of your venture
Like a good TV or radio commercial!
“WHAT HOW WHY”
A lot of great examples on YouTube:
Focus on the problem
Tell a story! - Use simple language
Have a great closing - PRACTICE A LOT!

24. CHALLENGE 3
DURING NEXT TWO WEEKS UNTIL Wednesday 17 Oct - Pitch Faculty, Facilitators and/or Ibu Zen in UC!
Make it a team effort (so that everyone is involved – not just an individual!)
Document the ambush then upload to your class FB page! Video, pic, evidence!!
EXTRA POINTS FOR SPECIAL ASSESSMENT

25. High Concept Pitch (Financial Pitch)
RAISING $$$ – say how much you have already raised and how much more you are asking for PRODUCT/SERVICE – describe what this is, very clearly, short sentences, and mention your website, Facebook page etc. TRACTION - Tells what you are currently focused on, what growth you have had (Sales, Customers, etc.) USE NUMBERS! SOCIAL PROOF - Tell who is already committed to the project for financing, and if they are important people, tell where they have invested in the past. Also tell about your Advisory Board TEAM - Talk about your management team MARKET - Describe your market – major players, minor players What are your differentiators (features, unique selling point etc.) Competitors Market feedback Who you are targeting and why this is different to your competitors

26. Make your “Killer Pitch-deck”
An example of a 12 slide deck
#1 - Introduction
#2 - Problem
#3 - Solution (with a Demo!!)
#4 - Market size and value
#5 - Business Model – how you will make money!
#6 - Distribution (& Marketing)
#7 - How special are you?
#8 - Competition
#9 - Team
#10 - Funding status (Money and Milestones)
#11 - Last slide (final memory)
#12 - Appendix of possible questions

27. You know how to do this slide!
#1 – Introduction slide
You know how to do this slide!

28. Example Slide – Introduction slide
“academy of you”

29. #2 – State your problem
This slide should be simple and easy to understand!
Every time you do this slide, investors should nod their head that this is a problem.
Secret tip – Identify what is the problem?
Who has this problem?
How many have the problem?
How do you know?

30. Udemy lets anyone create an online course. For free.
Example Slide – Stating the problem Problem: Online Education is Hard and Expensive
Custom
Integration
Udemy lets anyone create an online course. For free.

31. #3 – State your solution
Solution
Demo or prototype
Your Product solves big pain for specific customers…. Describe.
Simple bullet list
More detailed than Problem, but still simple
Simple diagram also works
Secret tip – describe why your solution: Makes customers very happy, does it better and different from anyone else

32. Example Slide - Giving the Solution
content

33. #3b – Demo or Prototype Your passion for your demo should be obvious
Have a good one, accept no substitutes
Rehearse it until you do the presentation in your sleep
Have at least 2 backup routes available
Backup PC, iPhone or whatever
Video YouTube demo
If no demo, then at a minimum get a mockup or have a decent sample available!
Your passion for your demo should be obvious

34. Example Slide – Showing demo of product
udemy live

35. #4 – Market Opportunity Top Down – someone else reported it
Analyst reports
Comparables in the market
Thought leaders
Bottom up – calculate users/usage/revenue$
Average spend amount + $X
Y customers in our market
Average customer buys Z times per year
Market size = $X * Y * Z annually = BIG MONEY
Market growing at XX% per year
Compare your ambitions with those of your future peers…

36. Example Slide – Showing the Market Opportunity
Corporate Education
$134B
Education and Training
$40B
Online Education
$52B
20% CAGR
Platform for Many Markets
Informal Education
$9B
Initial Focus
Informal Online Education
Total Education Market: $2 Trillion
Source: Market Size from IBISWorld and MarketResearch.com

37. #5 – Business Model (How do you plan to make money?)
# Describe Top 1 – 3 Revenue sources for your business
- Prioritize by Size, Growth and/or Potential
- Current market activity/customer behavior as proof
# Show how you get to Break-even (or Profitable)
# Describe your Revenue model:
Direct:- Sales, Subscriptions, Digital goods, eCommerce
Indirect:- Advertising, lead generations, affiliates
Secret tip - “Three ways we make money”:
Transactional (we charge for WXYZ services or from orders)
Advertising (charge for click thru, or premium sponsored listings)
Supplies (licensing, or charging other fees)

38. Example Slide – Business Model (how they make money) Business Model
20% of Sales
Students Pay for Courses or Live Instruction
Educators decide what to charge for and how much

39. #6 – Distribution (+Marketing)
Code for “Marketing Plan”
Show lots of channels, lots of decisions then choose a few key channels
Make sure you can explain how your product will get to market and be ‘distributed’
Secret tip – 3 things that matter and must be measured:
Volume Cost Conversion

40. Suggested Content: Distribution Information
Online:
Partner with fashion bloggers (for your fashion company)
Google AdWords campaign (to specific regions)
Generate SEO traffic via fashion listing pages
Offline:
Distribution partnership with ….. Where are they located?
Contest?
PR event (like a fashion shoe)?

41. Example Slide – Showing how their business is distributed Udemy’s Sustainable Growth Model
Educators Create Courses
Example: Ross Jeffries
Educators Earn $ on Udemy
Educators Promote their Course Online $ $
2,000 Page Views to Ross’s First Course
Most requested Feature.
Students Learn on Udemy, and Share Udemy with Friends
Udemy
Rocks!
Constant Twitter/Facebook Chatter since Launch

42. #7 – What is your UNIQUE advantage?
Describe what is your advantage….
Do you have a great market share that nobody else has?
Is your team exceptionally experienced?
Are you making an amazing breakthrough product?
You have IP or Patents or Proprietary Technology?
An exclusive partnership?
Great sales and marketing team?
What is your ‘secret sauce’ that nobody else has?
E.g. – you deliver on time or faster than anyone else because…
WHAT IS IT THAT MAKES YOUR BUSINESS SO UNIQUE WITH A KILLER ADVANTAGE OVER EVERYONE ELSE IN THE FIELD?

43. Example Slide – TRACTION – what makes you unique! Traction
Instructors
900 instructors have 1,600 courses
Extremely active and passionate teacher community
Half of our teachers ask for payment options
Over 10,000 assets have been uploaded to Udemy
Users
12,000 unique visitors per month
9,000 signups
600 daily unique visitors

44. Example Slide – TRACTION with numbers
Example Slide – TRACTION with numbers! Traffic/Usage Assumptions (monthly)
Traffic (in thousands)
Monetization Assumptions
Q4 2011
Unique Vistors
3,000,000
1/50 Create a Course
60,000
50% of courses paid
30,000
Average Cost per Course
$20
Average Buyers per Course 30
Total Monthly Sales
$18,000,000
TOTAL Monthly Revenues
$3,600,000
Growth Assumptions
Current
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Unique Vistors
20,000
60,000
100,000
300,000
750,000
1,500,000
3,000,000
Ratio of For-Profit Courses 0% 5%
10%
20%
40%
45%
50%
Number of Buyers per Course 10 15 20 30

45. Example Slide – more TRACTION – Publicity!y
“one of the most compelling features is Udemy Live”
“online learners are certain to benefit… from Udemy”
“A new kind of online classroom experience”
“Udemy offers an experience that rivals the real classroom”
“Enables anyone to teach online”

46. #8 - Competition Secret tip – Useful comparisons/differentiation
List all top competitors (it makes you look like you know your business sector!)
Say how you are better or at least different
If not better, then what is your ‘niche to win’
What is your positioning – it matters!
Make a graph – 2 axis – and show where the players are
Secret tip – Useful comparisons/differentiation
Simple v.s. complex
Value v.s. cheap
Cheap v.s. expensive
Consumer v.s. enterprise
Open v.s. Proprietary

47. #9 - Team
Who are you & what have you done? Briefly, i.e. 90 seconds / founder or less
If you have a technology based product, have the GEEKS onboard!
Do you have Special skills on your team?
What is your Entrepreneurial experience? Have you already created other companies? Sold them??
Sales/Marketing – who is doing this and what are they results/track record?
Also identify –
Key hires you will be making in the next year….
What roles you have candidates for (you will hire them when the funding comes through…..)
Do you have job descriptions written for these positions? Estimated salaries?

48. Example Slide – Team photo and titles JUST JOKING!!
Gangnum Style Team
Top Management

49. #10 – Funding Status (Money and Milestones)
Show 3 budgets – Small, Medium and Large
Small – this is you now! You already have this……
What will you do with the capital?
Key hires (how many extra people and what for)
Marketing and Sales (how much money do you need to run campaigns to get extra customers and build revenues)
Infrastructure (Scale-up)
Achievable Milestones (Roadmap!)
How will you get to next financial milestone
Show break-even or profit with this funding
Show relationship customers/revenues

50. Suggested Content: What you will do with the funding
Asking for $250K in October 2012
Valuation of business $500K
Angel Investors – Pak Denny, Pak Yo, Pak Ivan
Build initial product line; functional use with 120 customers
Use of money
$100K: hire 3 x social media marketing experts, 1x customer support specialist, 1 x office manager, 1 x admin assistant
$150K: market research, marketing campaigns and customer acquisition (buy lists)
Goals and Milestones
Get 10,000 customers, $250K revenue by April 2013
Estimated break-even in August 2013, with sales at $80K per month

51. Example Slide – showing what you will do with the money Fundraising
Raising $1M for 1.5 years of runway
Operational Capital
3 full-time team members
Hire part-time System Administrator and full-time Front-end Developer (UI, UX)
Goals
Reach 1,000,000 unique visitors
Reach $100,000 in monthly teacher sales
Prove business model and sustainable user growth model

52. Suggested Content - Roadmap
MAKE A GRAPH IN EXCEL or CHART
What is happening over the next 6 quarters?
How much headcount will that take?
Will that really move the needle in terms of traction?
What is happening over the next 6 quarters

53. Example Slide – Type of road map showing Break-Even Profit projections
Six Quarter Outlook
Dollars in Thousands
Year
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Revenue $0
$8,000
$72,000
$480,00
$1,620,000
$3,600,000
Cost
-$88,671
-$95,619
-$137,857
-$216,019
-$447,537
-$738,074
EBITDA
-$87,619
-$65,857
$263,981
$1,172,463
$2,861,926

54. #11 – Last slide Leave them with something to remember you by!
And as Steve Jobs always said:
“Oh, and one more thing…”
{Steve Jobs never had to ask for financing…..}
Make sure you put your contact information for the investor!

55. #12 - Appendix
Have answers to potential questions already figured out

56. Killer Deck-Final reminders!
MAKE SURE YOU HAVE ANSWERED ALL OF THESE QUESTIONS:
How much are you raising?
How long does this financing last?
What markets do you think are most promising?
What holes exist in your team (what talent do you need to hire)?
Why won’t your competitors Business YYY or Company ZZZ be better than you?
What makes you the right team to do this?
slides or less – 20 minutes at most – less is better!
Keep it simple and sweet!

57. List of slides for “Killer Pitch-deck” – again!
Your slides should be (in this order) -
1.  Intro – Quick short liner of what you do (elevator pitch).
2.  Problem you are trying to solve – how a problem exists, and how people find it painful
3.  The solution with Demo -  how cool is your product/solution is!
4.  Market size and value – how big is the market in users and in spending value
5.  Business / Revenue Model – how will you make money
6.  Marketing and Distribution plan – how will you grow your user base
7.  How are you special? – Technology or something else that makes you special
8.  Competition – how you stack up against them
9.  Your Team – how awesome you all are
10. Funding status – how much money you need and how will you spend it
11. Last Slide – leave them with something to remember you by positively
12. Appendix – Have answers to any potential questions and more details here

58. Example: Video of “Facebook” Pitch to Investors
Video 33 minutes – An adaptation of the “Financial Pitch” before their Initial Public Offering (IPO)
The video covers all of the key points: Market Opportunity
Problem – Solution - Distribution (& Marketing) – Team – Competition – Execution – Demo - Business Model
Some memorable lines……….Facebook helps you share what is important to you
Timeline and Newsfeed
You live through the communication of those things to the people you care about
Each person has a story!

59. Examples of other High Concept Pitches (from TechStars USA)
Go to YouTube and search on “TechStars Demo days” – you will see videos where teams have crashed and burned in front of the investors!
From TechStars sessions Demo Day (< 10 minutes):
TechStars on Bloomberg.com television (This is a series and episodes are 45 minutes long):
One TechStars pitch (<10 minutes):

60. Indonesian Incubators and Accelerators
Kevin Mintaraga who founded Project Eden
Project Eden
On YouTube
Startuplokal -
On YouTube
On Facebook
Merah Putih
Idea Source (Auditions in Surabaya!)
Singapore Government has program for Indonesia
Global Entrepreneurship Program Indonesia (GEPI)

61. Other Incubators and Accelerators in the USA
Y Combinator
500 Startups -
More are listed here:
The focus for these Incubators is usually high-tech or “fast growth startups”
There are many Incubators and Accelerators in the USA – search on Google

62. WORK ON YOUR PROFESSIONAL PRESENTATION SKILLS!
Extra Resources
Google for examples online of ‘Killer Pitch-deck”
Two creative PPT’s for a High Concept Pitch and
Interesting YouTube example:
These guys are big time famous:
Guy Kawasaki’s Books & Blog on pitching
Online article with good information:
WORK ON YOUR PROFESSIONAL PRESENTATION SKILLS!

63. Challenge 4 Make your Killer Pitch-deck and submit to your Faculty
Deadline – Friday 19 October 23:59pm
EXTRA POINTS FOR SPECIAL ASSESSMENT

64. Terima Kasih….
You can ask me questions while I am at Universitas Ciputra until October 20. Send an to set up a short meeting…..
Facebook –
Linkedin.com – zen parry
Thanks to sources of content on Facebook, YouTube, Udemy.com (for their great slides) and other links on the internet
Good luck developing your Financial Pitch and Killer Pitch-deck