Transcript Slide 1

Introductory VC Pitch
Month, Year
Company Name
Overall Guidance
• Demonstrate your domain expertise with your
understanding of the market
• Use the slides to lead, not read
• Ask questions; be a good listener
• “Less is More” 12-20 slides
• Keep it Simple
• Emphasize momentum/milestones that confirm
progress
• A Picture’s worth a thousand words
Page 2
Cover Sheet
• A brief one-line mission statement
– E.g.: Updata Partners is a venture capital firm that invests in
early and growth stage companies that provide innovative IT
software and services.
• Contact information
Page 3
The Elevator Pitch
• What is value proposition for customers to buy
your offering?
• Example:
“XYZ develops software solutions which help school
districts better manage their special education programs
by ensuring compliance, increasing revenues and reducing
administrative time and expense”
• Why is it compelling now?
Page 4
Company Background
• The management team
– Is this a high performance team?
– Articulate team members’ relevant experience
– Areas where the team needs additional help?
• Summary of the organization
– Headcount by Dept (include FTEs)
– Office location's
– Date Company was founded
• Board Members and/or Advisors
– What credibility do they add?
– Why did they choose to be involved?
Page 5
Market Opportunity
• Market need – define customer “pain” and drivers
• Market Size-“Keep it Real!”
– Total size
• TAM (Total Addressable Market) – what subset is relevant to
Company
• % of market you will own
– Growth rate
– Segmentation
– Company Positioning
Page 6
Competition
• “Know Your Market Cold”
• The competitive landscape
– Who are your competitors? Collaborators?
– Too little competition is not necessarily good
• Competitive differentiator
– What is your “secret sauce” or unique advantages?
– How sustainable are these advantages?
Page 7
Sales Model
• Vertical or Horizontal play?
• To whom do you sell
– What Titles are decision makers and influencers?
– How do you get to them (Direct, Inside Sales,
Telemarketers)
– Length of sales cycle
– How do you generate leads and awareness?
• Channels/Indirect Sales
– Mix
– Cost
– Partnerships
Page 8
Customers
• Number of current customers or Pilot/Beta
– Lighthouse clients
– Customer Concentration
– Customer Retention/Attrition
• Sales pipeline
– What’s the momentum in new opportunities and
bookings?
– What’s Visibility for Forward 12 Months?
– Win/Loss Ratio
• Brief case study can help
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Page 9
Company Name:
Pain Point:
Solution/Features:
Result/ROI:
Technology/Solution/Service Offering
• How does it work and what’s different?
• One page architectural diagram or logical
description
• Is there defensible “barrier” and have you
protected it?
Page 10
Product Development
• Status of product (Alpha, Beta, 1.0,…)
• Product/Service mix
• Product Roadmap
– Key milestones and expected completion/release
dates
• Dependency on external technologies/partners;
key vendor licenses
Page 11
Economic Model
• What is your economic model?
– Recurring or Transactional?
– Direct or Indirect?
• Highlight economic model assumptions
-Revenue Growth
-Margins
-Where’s leverage in the Model?
-Key Performance Assumptions
• Bottom line: How do you make money?
Page 12
Sample Economic Model
• Specify the cash flow breakeven point
• Monthly burn rate: gross & net
Page 13
Risks
• What keeps you up at night?
• What’s the biggest risk of NOT raising money?
• If the business doesn’t take off, what will be the
reasons?
• Who are the latent competitors, including
customer “make” decisions (vs. buying your
product)
• Who loses if you win?
• Be Honest!
Page 14
Financing History
• Capitalization table
– Amounts previously raised w/ dates
– Security type: Common Equity, Series A, Series B,
Convertible Debt
– Any special provisions, terms held by prior
shareholders
• Post-money valuation on last round
• Are your valuation expectations realistic?
Page 15
Proposed Financing
• Total amount to be raised
– Amount already committed from prior investors or
new lead
– How far does it get you?
• Expected future financings
• What do you need in an investor?
Page 16
Use of Proceeds & Exit
• Breakdown of proceeds usage on
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R&D
Sales & marketing
Acquisitions
Other
• Exit scenarios and timeline
– IPO vs. M&A
• Who are the buyers
• Why will they buy you
Page 17
Summary
• Bullet point summary of deal highlights
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Page 18
Why is now the time to invest?
Key momentum indicators
Market Size and Opportunity
Team Qualifications/Previous Success
Barriers To Entry