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 – – – – 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 – – – – 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 – – – – – Page 18 Why is now the time to invest? Key momentum indicators Market Size and Opportunity Team Qualifications/Previous Success Barriers To Entry