Building a Pitch Deck to Raise Venture Capital

#StartupStudyHall @jim_brown

“Money is like gasoline during a road trip. You don’t want to run out of gas on your trip, but you’re not doing a tour of gas stations.”

-Tim O’Reilly


Topics of Discussion

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


How to Pitch


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.


Know Your Stuff

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


Leave an Impression

!  They’re buying YOU!  Sell your vision of a

future state!  It’s NOT begging


What to Include


10 Points

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

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


Elevator Pitch

#StartupStudyHall @jim_brown Life is unpredictable. Owning a home shouldn’t be.


The Team


Founding Team

!  Industry: Peter Korda President Scotts Lawn Services, GM Sears Home Services

!  Industry: David Kerr VP of Ecommerce Angie’s 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 Chancellor’s Learning Systems.

Craig Sturgis, Product Built behavioral predictive analytics platform at Smarter Remarketer. Started career at Aprimo, acquired by TeraData.


What’s 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 kid’s room?

15 mins

DiagnoseToilet won’t stop running... can’t 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, there’s no shortage of places to find opinions on service providers.

45 mins

CallAlright, you’ve 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


What’s 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)


Market Opportunity


How do you Make $$$?


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)


Competitive Landscape


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


Go-to-Market


Initial Market Opportunity

Uber Generation

Boomer Generation


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


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

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?


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. We’ve 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


Personal Experience


YOU Can Too

!  Make a personal connection!  Stay even / stay committed

!  Best pitch / worst pitch

!  EVERYONE has an opinion


Resources


Check This

!  StartUp Podcast gimletmedia.com/episode/1-how-not-to-pitch-a-billionaire/

!  PitchEnvy www.pitchenvy.com

!  Perfect StartUp Pitch Deck www.barcinno.com/10-slides-for-a-perfect-startup-pitch-deck/

!  Simon Sinek www.startwithwhy.com


”In times of change, learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.” -Eric Hoffer

Building a Pitch Deck to Raise Venture Capital

Small Business & Entrepreneurship