“Perfecting the Pitch” A Compelling Case for Investment presented by NJEntrepreneur.com & North Jersey Partners
Jan 15, 2015
“Perfecting the Pitch”A Compelling Case for Investment
presented by
NJEntrepreneur.com & North Jersey Partners
MULTI-STAGE TUTORIALEnds January 31, 2010
WebinarRepeated Three Times, Archived For
Use
One on One Coaching4 Hours of Coaching
Videotaping2-3 Dates for Taping at 2-3 Locations
½ Day Time Slot to be Assigned
Copy of Videotape for Own Use
Free Posting on Capital Connections
MULTI-STAGE TUTORIALEnds January 31, 2010
WebinarRepeated Three Times, Archived For
Use
One on One Coaching4 Hours of Coaching
Videotaping2-3 Dates for Taping at 2-3 Locations
½ Day Time Slot to be Assigned
Copy of Videotape for Own Use
Free Posting on Capital Connections
CONFIDENTIALITY
Angels & VC's will rarely sign NDA in advance of Presentation
Do not Disclose Secret Sauce
Assume that Information will be seen Publicly
Review any Concerns with Intellectual Property Attorney
The Investment PitchAppeal to the Investor's Needs
Angel InvestorIndividual's Own MoneyPassion
Venture Capital FirmPool of Investor MoneyProfile of Prior Investments
Return on InvestmentReturn of Principal
Passion/Profile
Angel Investor: Personal Connection
Venture Capital Firm: Portfolio Focus
RESEARCH
Return on Investment
10x Multiple of Investment in 5 to 7 yearsPercentage of Company Given Up in Exchange for
FundingEarlier in the Venture, More Risk=Greater Reward
Return of Principal
Define Risk Appropriate to Investment Requested
Exit Strategy: Acquisition, IPOWhat Have Other Comparable Ventures Done?
What is compelling Today for an investor to say yes?Entry point of Investment that will make a difference
—as opposed to later--change in results related to investment--understand your key milestones
Proof of ConceptSeeking to Show Market Validation
Venture Stage:Prototype: Expert Opinion, Data, ResearchPre-Revenue: Testimonial, Purchase Orders, Advisory BoardEarly Stage: Trend, Scalability, Repeat Customers, Market
Validation
IMMEDIATE GOAL OF PRESENTATION:
Whet Investor's Appetite
Get A Second Meeting to Review Details
Get to Due Diligence
KEY PAGES OF SLIDE PRESENTATION
8-10 Minutes, Select Key Slides
Clear, Concise, Compelling
Cover PageProblem Being Solved
Solution Being ProvidedTechnology Being Used
Progress To DateMarket Being Addressed
Customer ProfileSales Strategy
Management TeamOutside Support
CompetitionFinancial Projections
Funding SummaryExit Strategy
SummaryContact Information
COVER PAGE
Company Name & LogoPresenter
Audience (if appropriate)Date
Define The Problem
What is the Pain You are Solving?
Who is involved?The Evidence to Support Your
Observation
The Solution
Define the SolutionExplain How the Solution will be ProvidedThe Features & BenefitsCommercialization Opportunity
THE TECHNOLOGY SLIDE
One PageExplained to a Lay Person
AudienceIts Role in the Solution
Intellectual Property (Patent, Trademark, Copyright)
Supporting Diagrams or Charts
Don't Confuse With Venture
PROGRESS/MILESTONE SLIDE
Key Factors that Impact Venture Growth
What Have You Accomplished, Where Are You Going
Revenue Year to Year Projections (5 years)Expansion of Management TeamKey Hires such as Sales Team
Addition of Number of Customers
Grid,Time line or Chart Works Well
Keep It Real!!Ability to Communicate Your Understanding of the
Factors that Impact Your Business
MARKET SIZE
Quantify the SizeWhat is Addressable Market?Identify the Initial Target Niche
Explain Expansion Opportunities
Offer Visuals
Cite Research & Evidence
CUSTOMERS
Explain Your Understanding of Your Customer
Description of End User PainCurrent Profile
Market SegmentsFactors that Influence the Customer
Strategies Associated with Penetrating Market Segments
Changing Profile of Your Customer with Expansion
Sales Strategy
Direct v. Channel
Direct:Expansion of Sales StaffSales CycleTarget Purchaser
Channel:PartnersScale & SizeDivision of Territories
Strategic Partners (if any)
Management Team
Communicating that IT is not ALL ABOUT YOU
Understanding Scalability & Infrastructure Building
CurrentTitles & Bios
Relevancy to Current Venture
Entrepreneurial Experience
FutureExpansion Needs
Timing
Outside Supporting Resources
Advisory BoardArea of ExpertiseName & TitleRelevance to Venture
Law FirmReputable Background in
Venture Funding
Accounting FirmRarely Sole PractitionerBackground in Industry
Competition
DirectSame Targeted Customers
Solving Same Painsimilar Product Features & Benefits
IndirectPain Solved by Product/Service that is
Tangential
FutureWhere will Competitors Emerge from
Financial Projections
1 to 5 years1st Year: Monthly2nd & 3d Years: Quarterly4th & 5th Years: Annual
Key Assumptions: Ratios, Margins, Factors Impacting Growth
Key Milestones: Break even Sales AccelerationChange in Cost Structure
Funding Summary
Personal FundsFamily & FriendsCurrent Round
Future RoundsConditions Foreseen
Use of FundsPrior Funds Used Most OptimallyKey Future Use with Greatest
ImpactMilestones that will be Passed
Exit Strategy
Acquisition
IPO
Time Frame
SUMMARY
For Investor, Why is Now the Right Time, Right Venture?
Dramatic Impact on Venture of New Funding
Evidence to Support Level of Confidence based on Prior ResultsFulfilling Investor's Needs: Passion,
Profile, ROI, Return on Principle
CONTACT INFORMATION
LogoNameEmail AddressPhone NumberAddressWeb Site
For More information about this tutorial, contact:Jeanne [email protected]
This Program has been funded in whole by funds from the US Department of LaborEmployment and Training Administration.