John's Presentation on How to Pitch

8/9/2019 John's Presentation on How to Pitch

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DRAFT

MassChallenge

Innovation

Collaboration

Impact

June 2010

John Harthorne [email protected]

Akhil Nigam [email protected]

David Constantine [email protected]


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MassChallenge, Harthorne, Nigam & Constantine

MassChallenge judging process, round 2

1

In-person pitches~300 teams invited to pitch (~70%)Panels consist of 3-5 general experts (not industry specific)

InvestorsPrincipals or Partners at VC firmsAngel investorsLawyersPartners at Law firms

Entrepreneurs / executivesExperienced business experts

Each team gets 20 min10 min to present10 min for Q&A(10 min for judging and transition)

Rating system same as for round 17 sections, all equally weighted except impact 2x weightJudges have no prior knowledge about your team blank slate


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Many of you have asked for advice

here you go

2

MAIN DISCLAIMER

I am not a judge.

I do not influence judging.

My advice could be COMPLETELY incorrect.

You control your own destiny.

Make decisions wisely.

SECONDARY DISCLAIMER

My wife had a baby last Thursday so Ive been a

little busy lately ...


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Johns thoughts on pitching NOT authoritative

3

Some thoughts There is no one correct way to pitch, e.g.

Try to cover all sections Focus only on areas of strength Focus only on areas of weakness

We are seeking high-impact startups Sell your vision ! describe outcomes Sell your viability ! describe inertia

Prepare for Q&A Demonstrate in-depth knowledge of your technology,

market, competitors and customers prep for Q&A

Why should an objective outsider believe you arelaunching a viable, high-impact startup?


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[email protected]

MassChallenge Judging Criteria

Solution and Technology (10%): Rating of 1-10 Is the technology / solution feasible? Is this still a science project? Does the technology / solution provides a clear benefit over the solutions

that exist in the market today?

Does the team have a clear product roadmap strategy?

Industry and Competitors (10%): Rating of 1-10 Is the entrant targeting a large market? Does the team understand the industry structure, value chain and its place in

the value chain?

Has the entrant outlined a feasible partnership strategy (if needed) withdifferent players in the value chain?

Does the team have a realistic view of existing and future competitors and itscompetitive advantage or how one can be built over time?

Customer Needs and Acquisition/Sales and Marketing (10%):

Rating of 1-10

Does the team understand customer pain points? Is the problem critical forthe customer (high marks) or just nice to have (low marks)?

Does the team have existing customers or customer feedback? Can the team articulate a unique and clear value proposition for the


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[email protected]

Team (10%): Rating of 1-10 Is the ideal team in place for this idea or requirements outlined for the ideal

team including Board of Advisors and Directors?

Has the team progressed and validated its idea with external people in themost important aspects of their business?

Is there compelling reason to believe that this team can pull it off as opposedto others in the space?

In person pitches only Do you believe that the founding team can buildthis startup?

Legal and Regulatory (10%): Rating of 1-10 Does the team have a clear strategy in regards to creating and managing its

IP assets? (if applicable)

Are there major legal hurdles / potential regulatory problems to implementthis idea?

Overall Impact (20%): Rating of 1-10We are looking for transformative businesses

Does this startup have the potential to impact markets and society in ameaningful way?

Does this startup represent a viable investee or grantee for capital providers? Do you think this team can benefit from MassChallenge?


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16.976 The Founders Journey ! 2010 Copyright K. Zolot, MIT

Lifes a Pitch

6.976

The Founders Journey

K. Zolot


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Zolots Law of Three Nines

9 seconds gut feel

90 seconds elevator pitch

9 minutes gist of the

presentation


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After the First 9 Minutes

25 minutes concise

presentation

45 min.full presentation

90 min.the whole story w Q&A


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What Were Going to Talk About

Social dynamics of pitching. The presentation itself. Talking in headlines


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Headlines

RIVAL SAYS HE IS READY FOR RUNOFF WITH KARZAI!MATCHES WELCOME WHERE SMOKERS ARENT!YAHOOS PROFIT TRIPPLE DESPITE SALES DECLINES!A NEW ELECTRONIC READER, THE NOOK, ENTERSTHE MARKET!BALOON SAGA DEVOLVES INTO FISTFIGHTS!MALDEN MAYOR DEFENDS SECRET MAILINGS!SOX KICK AROUND IDEA OF SOCCER AT FENWAY


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More Headlines

SOMETHING WENT WRONG IN PLANE CRASH,

EXPERTS SAY !DOCTOR TESTIFIES IN HORSE SUIT

!DRUNK GETS NINE MONTHS IN VIOLIN CASE

With thanks to Heidi Neck, Babson College!


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Your Audience

Youll use this pitch for:

investorskey hires/co-founders

creditors/suppliers possible partner companies early customer prospects visits to 6.078 next year asa guest speaker


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Goals of Presenting

Show (quickly) that you understand whothe customer is and why he/shes buying.

Introduce the team Answer questions, show that you can

think on your feet.

Be on stage: show teamwork, urgency,charisma, generate excitement


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The time dimension

Discuss milestones youve

already reached, and those

youll need to hit. Show

awareness of an action plan

and schedule, risks,

dependencies (good and bad).


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Knowing/Preparing Your Audience

If coming in via an advocate,use him/her.

If coming in cold, be consciousof interactions that lead to themeeting.

Know what they know about youbefore your arrival: what holesin the story are they looking tosee if you can fill?

Arrive with a positive newdevelopment.


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Do's and Donts continued

Bring hard-copy, but dont hand itout before you begin, dont send itin advance.

Dont try a demo or use special A/V Be prepared for A/V problems,

bungling something youre trying tosay, or a hostile or a deadaudience.

Know the computer thatsprojecting. Look at the room, understand light,

glare, lines-of-sight.


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Dos and Donts continued...

Dont read from slides. Have minimaltext on slides. Do as I say, not as I

do.

Mute the screen between topics. Use PPT as conclusion. Number the pages. Skip the bland table of contents, usethe exec summary for this.


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Use light text on darkbackground for presentation,

negative for hand-outs. Make graphics crisp andreflective of good news, but

not flashy or over-produced.


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Rehearse with friends (possibly youradvocate).

Be aware of whats on the screenduring breaks, Q&A.

Dont overlook pre-meeting andpost-meeting interactions and

socialization.

Dont leave just because youre atthe end of the presentation.


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Pitching Dos and Donts

Use humor or try to cut through theinvisible wall, but be careful, and

dont sound like a used car

salesman. Have a role for all the people youbring.

Dont bring a half-relevant grey-hair.


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Make no unsubstantiated claimswrong: our drug will sail through the FDAright: were well poised for the FDA process, as our

scientists have 40 years combined experience

getting drugs approved

Dont exaggerate or use dramaticlanguagewrong: this markets taking off like wildfire

right: Most analysts agree that the market will grow85% per year for the next five years (and have

the sources)

Brag about each other, but factually wrong: Now I would like to introduce our awesome CTO

whos going to rock your world

right: Were really thrilled to have a CTO who was a

Fulbright Scholar, and just sold his last companyfor $20 billion


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Book...

S. I. Hayakawa,

Language in Thought and

Action


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Dos and Donts continued

Be ready for a barrage of questions,attempts to throw off your flow.

Know how to deal with a drill downguy.

Cite believable sources. Anticipate questions and discuss

before asked: One question you

might have. is how quickly is the

Linux market growing?

Know how to say I dont knowgracefully.

Dont say it depends.


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Show Excitement but Not Hype

Remember the advice to make nounsubstantiated claims.

Confidence without ego. Start with conservative statements(you are building trust andbelievability).

Show realistic expectations, whiledangling the possibility of a grand

slam win. Show ability to plan forcontingencies.


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Know Whos in the Room

Dont underestimate a so-calledjunior member of the team.

Maybe the person youre talking to... is going to do the checking-up on you wants to take you under his/her wing is going to object just to sound opinionated,vs one who has a legit objection might have a similar deal brewing got burned on something similar a few years ago has good relevant experience in your field has thoroughly checked into you before the

meeting and knows all about your business just stumbled out of bed and has no idea who

you are and why he/shes in the meeting


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Reveal Secret Sauce?

NDAs Black Boxing Why is this better? Understand IP law Track record, credibility First mover Cheaper to buy us


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The PowerPoint Pitch

Three sections:

1.First 2 or 3 slides: executivesummary, key points

2.~15 more slides: details andfurther discussion

3.Appendix: supporting research,Q&A

Be prepared to jump around,

change order


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Dont Waste the Time of Your

Audience...

with dumb mission statements,

lectures about how were

evolving into an information-

based society, or a venting of

your aspirations to contribute

to humanity.

Get into it right away: first

few minutes are key.


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Get Into Tactics...

Show predilection for action. Show list of prospects, or earlyadopters. Large, growth market.

Show an understanding of thecustomers problems.

Described technology-baseddifferentiation, secret sauce,

discuss patents/barriers(defensible, sustainable).

Fiscal restraint.


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252009 Copyright K. Zolot, MIT

15.3

90New

Enterprise

s,

Anderson/Zolot

Boring Summary Slide

Agenda

Team Market Technology Capitalization plan


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262009 Copyright K. Zolot, MIT

15.3

90New

Enterprise

s,

Anderson/Zolot

Better Summary Slide

Overview

Proven team lead by former X of Y, scientific advisory board withhead of X from Y!Addressable market of $x, CIO of P&G committed to betatesting.!Defensible technology, exclusive agreement in place, patents

awarded.!Raising $x to get to product launch on x/x/07, then $z to get tocash flow positive in x/x/09.!


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After the First Slides

a few tried-and-true stunts...

(dont use all these, or even

necessarily any of them, but

they will help give you some

ideas)


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Clunky Legacy stuff!

competitor 1!competitor 2!

Simple translators !!

competitor 3!competitor 4!competitor 5!

True next generationenterprise-class ultra-scaling super-coolbreakthrough !!

us!

1. Box em in:(put everybody else in a bland category, youre a newexciting category):!

Food salting

and

preserving

Water-bound

manual ice

solutions

Constant-

Temp

Refrigeration


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2. Inevitability

StorageHostingBroadcastCachingStreaming"

Content !

EGENERA

Transactions!

RoutersModemsBroadbandOptical Networks"

Bandwidth!The Internet Infrastructure Build-Out!


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Brokentechnology!

Good

technology!

Point product! Comprehensivesolution!

competitor 2!competitor 3!

competitor 1! You!!

IBM!

3. The Upper Right Quadrant

competitor 4!


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4. The Features Checklist

Egenera ! ! ! ! ! ! ! !

Sun " " " " " " "IBM ! " " " ! " " "

Windows " " " " " " " "Other Linux" " " " " " ! !


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5. Industry Roadmap

Consumer

IMinfiltration

Early adopter ITacceptance; build-out infrastructure

2001

2002

2003

2004

2005

.NET deployment;

app servers

Consumer IM

client

Fragmented

corporate IMclient offerings

First real

applications

appear; ISVintegration

Client

consolidation;major new

app vendors

emerge

(source: Chuck Digate, Applied Messaging)!


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6. The Pyramid

Ice shipments today $20b !World ice market $80b !

Available untapped market

$7 trillion !All refrigerationand airconditioning

applications


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7. The Wall of Logos

Our Signed Beta Customers!


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Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410! Headcount: 5 7 10 15 22 30 45 70!

Series A, $4mfor Prod. Launch& First Revenue!

Series B, $12mfor Growth andProfitability!

Alpha Product in the Field,Mgmt Team Expands!

Beta Feedback,Product Development!

V1 GA launch,

Revenues!

Alpha0.7!

Beta0.8!

Beta0.9!

GA1.0!$2m Revenue,

Year 2007!

$8m RevYear 2011!

Cash FlowBreakeven,Q410!

Launch of V2Development!

3 $100,000purchase orders!

Capital Investments

Revenue MilestonesProduct Milestones

8. Milestone Timeline


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9. Market Overview

Market EstimatedMarket Size ($M)

Potential Applications Key Players

Military $9601,200 Night vision Missile detection Raytheon Westcam

EFW Lockheed Martin Northrop Grumman L3 DRS BAE FLIR

Security $150300 Security surveillance Terrorism

applications

Sensors unlimited FLIR Redshift Systems Others

Manufacturingand Agriculture

$4050 Inspection Quality control Sensors Unlimited FLIR

Redshift Systems Others

Source: Vladamir Bulovics Slim Format Spectrometer i-Team!


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10. Margin analysis

Us

Retail: $8540% margin

CompetitionRetail: $10015% margin

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