Presentation on theme: "Introductory VC Pitch Month, Year Company Name. Page 2 Overall Guidance Demonstrate your domain expertise with your understanding of the market Use the."— Presentation transcript:
Introductory VC Pitch Month, Year Company Name
Page 2 Overall Guidance Demonstrate your domain expertise with your understanding of the market Use the slides to lead, not read Ask questions; be a good listener Less is More 12-20 slides Keep it Simple Emphasize momentum/milestones that confirm progress A Pictures worth a thousand words
Page 3 Cover Sheet A brief one-line mission statement –E.g.: Updata Partners is a venture capital firm that invests in early and growth stage companies that provide innovative IT software and services. Contact information
Page 4 The Elevator Pitch What is value proposition for customers to buy your offering? Example: XYZ develops software solutions which help school districts better manage their special education programs by ensuring compliance, increasing revenues and reducing administrative time and expense Why is it compelling now?
Page 5 Company Background The management team –Is this a high performance team? –Articulate team members relevant experience –Areas where the team needs additional help? Summary of the organization –Headcount by Dept (include FTEs) –Office location's –Date Company was founded Board Members and/or Advisors –What credibility do they add? –Why did they choose to be involved?
Page 6 Market Opportunity Market need – define customer pain and drivers Market Size-Keep it Real! –Total size TAM (Total Addressable Market) – what subset is relevant to Company % of market you will own –Growth rate –Segmentation –Company Positioning
Page 7 Competition Know Your Market Cold The competitive landscape –Who are your competitors? Collaborators? –Too little competition is not necessarily good Competitive differentiator –What is your secret sauce or unique advantages? –How sustainable are these advantages?
Page 8 Sales Model Vertical or Horizontal play? To whom do you sell –What Titles are decision makers and influencers? –How do you get to them (Direct, Inside Sales, Telemarketers) –Length of sales cycle –How do you generate leads and awareness? Channels/Indirect Sales –Mix –Cost –Partnerships
Page 9 Customers Number of current customers or Pilot/Beta –Lighthouse clients –Customer Concentration –Customer Retention/Attrition Sales pipeline –Whats the momentum in new opportunities and bookings? –Whats Visibility for Forward 12 Months? –Win/Loss Ratio Brief case study can help –Company Name: –Pain Point: –Solution/Features: –Result/ROI:
Page 10 Technology/Solution/Service Offering How does it work and whats different? One page architectural diagram or logical description Is there defensible barrier and have you protected it?
Page 11 Product Development Status of product (Alpha, Beta, 1.0,…) Product/Service mix Product Roadmap –Key milestones and expected completion/release dates Dependency on external technologies/partners; key vendor licenses
Page 12 Economic Model What is your economic model? –Recurring or Transactional? –Direct or Indirect? Highlight economic model assumptions - Revenue Growth -Margins -Wheres leverage in the Model? -Key Performance Assumptions Bottom line: How do you make money?
Page 13 Sample Economic Model Specify the cash flow breakeven point Monthly burn rate: gross & net
Page 14 Risks What keeps you up at night? Whats the biggest risk of NOT raising money? If the business doesnt take off, what will be the reasons? Who are the latent competitors, including customer make decisions (vs. buying your product) Who loses if you win? Be Honest!
Page 15 Financing History Capitalization table –Amounts previously raised w/ dates –Security type: Common Equity, Series A, Series B, Convertible Debt –Any special provisions, terms held by prior shareholders Post-money valuation on last round Are your valuation expectations realistic?
Page 16 Proposed Financing Total amount to be raised –Amount already committed from prior investors or new lead –How far does it get you? Expected future financings What do you need in an investor?
Page 17 Use of Proceeds & Exit Breakdown of proceeds usage on –R&D –Sales & marketing –Acquisitions –Other Exit scenarios and timeline –IPO vs. M&A Who are the buyers Why will they buy you
Page 18 Summary Bullet point summary of deal highlights –Why is now the time to invest? –Key momentum indicators –Market Size and Opportunity –Team Qualifications/Previous Success –Barriers To Entry