Copyright 2007, Alliance of Angels Introduction The Anatomy of the 10 Minute Pitch The Problem The Solution Sales Strategy Partners Competition Traction Advisory Board Management Revenue Model {00:30 seconds} {03:00 minutes} {08:00 minutes } {10:00 min.} Financials The Offer Market Size Customers
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Copyright 2007, Alliance of Angels
Introduction
The Anatomy of the 10 Minute Pitch
The Problem
The Solution
Sales Strategy
Partners
Competition
Traction
Advisory Board
Management
Revenue Model
{00:30 seconds}
{03:00 minutes}
{08:00 minutes }
{10:00 min.}
Financials
The Offer
Market Size
Customers
Copyright 2007, Alliance of Angels
Act1: The Introduction
Copyright 2007, Alliance of Angels
Alliance of Angels:
10 Minute Pitch Clinic ~ April 10, 2007
Rebecca Lovell, Program Manager Alliance of Angels
2006-07 Preston Gates & Ellis Fellow
Providing the Venue for Angel Investors and Startup Companies to Meet
Introduction
Copyright 2007, Alliance of Angels
The Problem • Define the problem and WHO has
this pain – Graphs – Pictures – Describe a problem scenario /usage case
The Problem
Copyright 2007, Alliance of Angels
The Solution Overview of primary product or
service that will solve the problem
The Solution
• Use multiple slides if necessary
• Do not exceed time limits • Product Photos, Screen shots • Logical Flow and Architecture diagrams • Short list of Feature/Benefits
Be clear about the status of
product development
6
75-100 Million Interviews (Per Yr)
$350 Billion Claims Related (Per Yr)
Process is “Off The GRID”
Paper Claims File
Weeks and Months
The problem: Recorded Claims
7
$15M Savings (Per Yr): Farmers Insurance
24 x 7 x 365 Availability
Giant, Untapped Data Asset
Minutes
Claims Rep Interviewees Bridge .WMA
The solution: Digital Service
Copyright 2007, Alliance of Angels
Traction Slide • Founded in 2003
• 3 full-time employees, 3 part-time
• Released v.1 fall of 2004
• 15 Beta Users, 10 Paying customers
• Signed up 3 channel partners
• Received ABC certification
• 1 provisional Patent filed
• Press coverage, awards
Traction
Copyright 2007, Alliance of Angels
Questions about Act 1: the
Introduction?
Copyright 2007, Alliance of Angels
Act 2: The Business
Copyright 2007, Alliance of Angels
Market Size • Build the number from the ground up
• Total Addressable Market • Use drivers relevant to your product
• Show the different segments – Pie Graph works well – Explain how you prioritize the segments
• “This is our initial market” (speak to why)
• If you must use 3rd party figures, cite the source
Market Size
Copyright 2007, Alliance of Angels
Total Addressable Market: US home broadband users
ages 12 to 34 who actively consume internet video
7
2.7
4.4
22.4
8.5
14.1
14M 2006
45M 2011
29-34yrs 18-28yrs 12-17yrs
Market Size Example
Copyright 2007, Alliance of Angels
Customers • Current Customers
– 83 startup companies like the following:
Customers
• Potential Customers • Early stage technology companies raising between $250K to $2M
– Your Company, Inc. – His Company, Inc. – Her Company, Inc.
Copyright 2007, Alliance of Angels
Sales Strategy How do you sell your product? Direct and/or Channel Sales
If Direct, • How many sales people? • How long does it take to close a deal? • Who is the key decision maker? (Especially if that differs from
the key user)
If Channel, • Who are the partners? • How many are required? • How are the territories divided? (If relevant)
Sales Strategy
Copyright 2007, Alliance of Angels
Partners
• Revenue share • Content
provider • Distribution
partner/broker
Partners
Targeted Partners
Copyright 2007, Alliance of Angels
Revenue Model • Licensed Software • Hosted Solution, Monthly Fee + 2% of all transactions
booked through our system • We Sell Widgets; Direct and Through a Channel • Time and Materials
Revenue Model
Cost $650
Distributor $1750
Retailer $2000
Customer $2500
Gross Profit $1100
Avg Customer Buys 24 Widgets per year
20%
10%
Gross Margin >60%
Average Customer is worth $60,000 in annual Revenue
This is an example for demonstration purposes only
Copyright 2007, Alliance of Angels
Competition • Indirect Competition
– Summarize the current alternatives (other technologies or types of products)
• Direct Competitors (logos are easier to read than text) – List competing company 1 and an analysis – List competing company 2 and an analysis – List competing company 3 and an analysis
• Use a matrix if possible
Competition
Copyright 2007, Alliance of Angels
Competition
Synchronization
File Format Agnostic
Distribution Agnostic
OS/Player Agnostic
File Format Agnostic
Distribution Agnostic
OS/Player Agnostic
ABC B Co XYZ
Copyright 2007, Alliance of Angels
Management Team • Name, Position
– Prior Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
• Name, Position – Prior Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
• Name, Position – Prior Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
• Open positions – VP Sales – Head of QA
Management
Copyright 2007, Alliance of Angels
Advisory Board • Name, Area of Expertise
– Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
• Name, Area of Expertise – Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
• Name, Area of Expertise – Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
• Name, Area of Expertise – Company, Position (VP or above), Years – Prior Company, Position (VP or above), Years
Advisory Board
Copyright 2007, Alliance of Angels
Questions about Act 2: the Business?
Copyright 2007, Alliance of Angels
Act 3: The Future
Copyright 2007, Alliance of Angels
Five Year Projections (Millions, US)
$3M $10M
$40M
$80M
$120M
-$10$10$30$50$70$90$110$130$150
2007 2008 2009 2010 2011
RevenueIncome
Assumptions:
– In 2010, $__ per sale
– In 2010, __customers – 2010 market share: __ % – In 2010, __% from new
sales; __% from recurring
– U.S. market only – Does not include future
product extensions
This is an example for demonstration purposes only
Financial Projections Financials
Copyright 2007, Alliance of Angels
Funding Requirements Prior Funding:
- $ from founders, $ from outside investors, $ grants Current Round:
- Seeking $1 million ($500,000 raised) - Pre-money valuation: $2 million
Use of Funds: - Finish v 2.0 Prototype - Launch in xxx market - File patents
Future rounds: - Series B of $ million expected in early 2007
Exit Strategy: - Acquisition (perhaps Microsoft, IBM, Nike, or Gatorade)
The Offer
Copyright 2007, Alliance of Angels
Why Invest • Experienced Management Team • Generated $x in revenue in 2002 • Strong IP position • Large and growing market • Signed partnerships with key players