NewCo OverviewJan 26, 2012
Why is this here?????Why is this here?????
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
2012 Example Investor Pitch Deck for start-ups
From www.ReOverThinking.com@kipmcc
@reOverThinking
SLIDE #1
Agenda and Company Snapshot
Agenda
• Background– Market overview
– Team
– NewCo Business and Business Model
• Company & Business Details– Progress & Mile stones
– Company metrics
– Competition
• Customers & Pipeline
• Financial Overview
• Financing & Use of Proceeds
Company Snapshot
2
What do we do?Here’s where you get to put what you do, who you do it for and why that matters in one thin sentence.
Target marketsList your target customers (today & future) by big-name categories like and “health care,” “IT” or similar
Partners & CustomersList actual partners and customers that you’ve had material conversations with
EmployeesList FTE and contractors separately; note founders vs. employees if appropriate
Investors Friends, family, anyone else?
Founded Q? 2010
Headquarters Austin, Texas
2011E Financials Bookings: $xyz millionRevenue: $xyz millionExpense: $xyz thousand
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #2
Team and Roles
• Board members and advisors– Person #1
• Role, interesting facts, areas of influence, etc.– Person #2
• Role, interesting data
3 Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
• Graduated Cum Laude from XYZ University
• IT/Dev Background & Winner Start up contest
• First start-up was…
• Over 10 years of programming and web development experience.
• Built site & Architecture from the ground up
• Leads marketing, SEO, and early sales
• Optimization specialist with background in statistics
John Doe, CEOJohn Doe, CEO Jane Buck, CTOJane Buck, CTO Founder #3, roleFounder #3, role
Picture, etc.SLIDE #3
$$$$
Today’s Problem is Big & Difficult
• Our customer’s problem is big & valuable – today!!– Here’s why via discussion…
• We have solved this problem where others have tried and failed…stay tuned for why we’re different!
• Here’s an anecdote that makes this problem very real to someone unfamiliar with the market
4
SLIDE #4A: The Prototype “problem” slide
Well-known, clearly-defined
target customers…
…have a big, valuable problem that’s core to their success!
And this end-state is a clearly virtuous position that we just might
be able to help with.
cloudbigdata
mob
ile
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
The Security Risk Gap is Growing Exponentially
5
• Increasing rate of new vulnerabilities
• Decreasing time to patch them
• Walk-in worms, e-mail attacks
• Rogue applications “stealing” IT resources
• Traditional tools can’t fully mitigate today’s security challenge– Perimeter firewalls are porous
(e.g. allow port 80) and can’t handle the core
– Comprehensive patching is impossible
– Not all end-points under IT controlTime, Business Growth
Security Demands
New security demands exceed IT capacity
IT Security CapacityIT Security Capacity
SLIDE #4B
$2B lost in $2B lost in 2004 alone!2004 alone!
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SecurityRisk Gap
ServiceActivation
ServiceExecution
ServiceCreation
Network Intelligence
InvokeM
anag
e Enable
Current Service Provider Challenges (2001)
• Need to recoup the billions of CapEx invested in network infrastructure
• Need normalized way to create, activate, and deliver basic & enhanced IP services across multiple devices
• Increasing complexity of subscriber home network environment
• Massive growth of subscriber base and associated support expense
• Expensive acquisition & activation costs
Broadband providers face many obstacles today:SLIDE #4C
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
Our Solution Ties It Together
Our Solution is Valuable & Proprietary
• Our solution is simple yet quite defensible– We’ll talk you through all the details now…
• We closed our first n customers quickly because they needed our solution so badly– They are referenceable, happy & providing feedback
• At $xyz in MRR, we’re underpriced relative to our value
7
SLIDE #5A: The Prototype “solution” slide
For these customers that can’t wait to buy it!
…with an efficient go-to-market that we’ll talk more about in a
minute.
cloudbigdata
mob
ile
GTM
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
Product Demo or Product Line
8
SLIDE #5B
Intrusion Prevention Bridges The Gap
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
Broadband Service Management
• Provider’s operational costs cut by as much as 50%• Plus great intangible benefits
– Faster time to market: win the broadband land-grab!– Happier customers: brand and reputation matter!
Before Our Product
After
+Cos
t ServiceMgmt
SLIDE #5C
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
Budgets Allocated & Re-directed for IPS
• The $10B security industry is growing at a 25% CAGR• Intrusion Prevention is a $200m market that is stealing
budget from older, less-impactful security segments
10
$$ $$
$ $$
DDoS
IT Security: $10B TAM
SLIDE #6A
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
North AmIT Security
Market
104,755
Our Target Market…•Sells Online•Sells Commodity Items•Sells in the US•Does $500K - $30M in annual revenue•Spends 5%-10% of revenue annually to find, support & sell
We Target US Online Retailers
TAM: $2.4 billion & growing at 15% annually- source: blah blah Research, June 2011
SLIDE #6B
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
Next Generation Home Security Market
12
Next Generation Home Security, Monitoring and Automation• Next Generation Home Security• Remote Monitoring• Energy Management• Lighting/Thermostat Control• Elderly and Home Health Care• Entertainment Management/Control
2011 2015
$31B80M HH’s
TraditionalHome Security
$47B90M HH’s
NewCo’s Platform & Product Offering• NewCo can access entire $47B market• Next-Gen Home Security, Monitoring, Automation
$7.5B11M HH’s
$38B88M HH’s
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
Source: Xyz research
SLIDE #6C
Product, Vision – THE SLIDE
13
Phase OnePhase One NameName
Product #3
Product #4
Product #1
Solution Thingy
Product #5
Nifty bundle of stuff
What you do in Phase 2
The BIG problem / solution relative to your vision
The Phase OneProblem, Solution
Pithy but logical business / challenge / solution evolution over time
Real, todayReal, today Real, tomorrowReal, tomorrow Real in the futureReal in the future
The PastThe Past
TheTheFutureFuture
Phase TwoPhase Two NameName
Phase Three NamePhase Three Name (aka your vision)(aka your vision)
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #7A
BroadJump’s Product Vision (2001)
14
DeploymentDeploymentAccelerationAcceleration
Virtual Truck™Qualifier
Virtual Truck™Installer
Manage the Service
Differentiate the Service
Activate the Service
Cost savings delivered throughout the broadband subscriber lifecycle
SubscriberSubscriberManagementManagement
Value-AddedValue-AddedService DeliveryService Delivery
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
CorrectConnectTM
Service AccessManager™
ControlWorks™ Fulfillment
EngineVirtual Truck
Agent™
SLIDE #7B
Progress and Milestones
15 Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #8A
Traffic and Customers by Channel
• Great customer growth despite seasonal traffic
• Decreasing concentration of traffic and customers from Channel #3
– Direct Chan#1 starting to work
• Customer acquisition cost decreasing month over month to $xx.yy
• Churn rate steady at 1.77% over Q4 2011
16
Chan#1
Chan#2
Chan#3
Chan#4
Chan#5
Chan#6
Traffic by Channel
Customers by Channel
SLIDE #8B
Customer Acquisition
17
Organic Email MktgSEM
100%
4.14%
0.61% of visits to website become
Paying Customers
2.02%
95.9%bounce rate
Landingpage
Sign-up for service
Activation
With limited data, acquisition costs With limited data, acquisition costs are trending lower due to better are trending lower due to better conversion rates post activationconversion rates post activation
SLIDE #8C
Other business metrics
18 Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #9
Competition, Secret Sauce, Differentiation
19 Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #10
Current Customers, Partners, Discussions
20
Customers Pipeline Partners
• Sales cycles seem to be 4 to 6 on average; deal size is $50k-$250k• Training channel partners this quarter; 1-2 active sales cycles next• Pipeline filled up through inside sales cold-calling and email response
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #11
Financial Information & Projections
21
Headcount 2 2 3 3 4 4
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #12
Financing Details
•Existing Investors–Founders seed funded the company for 3 months
• Approximately $100k invested by founders & family–Raised $20k from Capital Factory in Austin, TX
• Common stock, $xyz valuation
•Would like to raise $zyx–Lasts company 12 months–Use of proceeds
• Hiring 2 people: developer, sales• Incremental server capacity at AMZN• Critical tool / service we need to run business
–Timing: would like to close in next 90 days
22 Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
SLIDE #13
Thank you.
Presented to InvestCoVentures, Jan 16 2012Presented to InvestCoVentures, Jan 16 2012
2012 Example Investor Pitch Deck for start-ups
From www.ReOverThinking.com@kipmcc and @reOverThinking
SLIDE #14