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Preparing a Pitch for Investors

    This is your stage and you have to
        direct the performance.....
      If the audience doesn’t get it
               You are Done!
“Traction is the new king. It is all
about a simple business model,
   tested market fit and cross
       functional teams”
    Summary of Paul Singh’s presentation in India
Agenda
•   Meet & Greet
•   Introductions
•   Preparing a Pitch for Investors
•   Q&A
•   Future Topics
Who is your Audience?
Who is Looking For a Design
         Award?
Who has the most Logo’s in a
  Presentation Contest?
7 Steps To A Winning Pitch
1.   Preparation is key
2.   First Impressions matter
3.   Embrace brevity
4.   Know your numbers
5.   Conduct market research
6.   Be enthusiastic but professional
7.   Practise makes perfect
Kevin O’Leary’s View of what
        makes a Great Pitch
• The founder is able to articulate their vision
  and the opportunity in 90 seconds or less
• Here is my idea and here is how it is going to
  make you rich if you invest in it
• They are able to articulate why they should be
  the team to execute the business plan
• The team starts to sizzle and they emerge as
  leaders you can invest in
TOOOOO Short .... No way
       Just too short on content
• I have been a member of MLA’s Selection
  Committee for three years and > 80% of
  presenters run out of time
• A Perfect round number is ten slides
• With the right content you can present in 15 ‘
• If you can’t explain your business to a nine
  year old, you won’t be able to explain it to an
  investor
11 Insider Secrets to Pitch an
                 Investor
1.   Get the talking to listening ratio right
2.   Be Curious
3.   Don’t Name Drop
4.   Keep so simple a 9 yr old would understand
5.   Have a specific objective
6.   Don’t take yourself so seriously
11 Insider Secrets to Pitch an
               Investor
7. Defend your assumptions
8. Avoid grandiose, absolute statements
9. Tell us the “ Hard Part”
10. Don’t start on Chapter 3
11. Let your Passion Shine
 “In Silicon Valley one in three hundred pitches
                      get funded”
Recommended
  Ten Slides
    For a
    Pitch
Market Need and Solution
• Define the problem or the market need, and
  outline your solution. Give “the elevator
  pitch” for your start-up
Company and Business Model
•   Name of the Company and Organization
•   Products or services
•   How you will make money
•   Who pays you
•   Gross Margin
Product & Technology
• Define the technology behind your product or
  services (past, present and future
  development phases).
• Make sure you communicate the relevance of
  your product/services to market needs.
• Describe your technology patents and “secret
  sauce”.
Industry & Market Sizing
• Define the characteristics of the overall
  industry, market forces, market dynamics and
  customer landscape.
• The investor needs to understand the industry
  of your company.
• Use third party data.
Marketing, Sales and Partners
• Describe marketing strategy, sales plan,
  pricing and partnership plans.
• Here is also a good place for a rollout timeline
  with key milestones.
Competition and Competitive
           Advantage
• List and describe your competition.
• Describe some of your company’s competitive
  advantages.
Management Team
• Qualifications and roles of the top three
  executives and top three on your Board of
  Advisors
Funding Requirements and
           Use of Funds
• How much money (if any) has management
  put into the venture? (not sweat equity)
• What is the level of capital funding sought
  during this stage?
• What is the company willing to give in return
  for the investment?
Financial Forecasts and Metrics
• Project both revenues and expense totals for
  next three years, and past three years.
• What is the current valuation of the company?
• Show breakdown and growth assumptions
• No Hockey Stick graphs please!
Exit Strategy
• What is the timeframe of Return on
  Investment?
• What is the planned exit strategy?
• What is the timeframe for the exit?
• What is the rate of return expected for the
  investor?
PRACTISE

           PRACTISE

           PRACTISE

You have until Feb 28 to PRACTISE
Remember,
      you are asking someone to give you
                $1,000,000.00
So you need to convince them you respect their
            time and interests as well
Future Topics
1. Bootstrapping a Company & Exec Summary
2. Preparing a Pitch for Investors
3. Accessing Capital from a Angel Network
4. Terms to expect from an Investors Term
   Sheet
5. Forming an Advisory Board
6. Pros of Cons of accessing Venture Capital too
   early & some of the pitfalls to avoid
Gerard Buckley, BBA, FICB, ICD.D
President and CEO
Jaguar Capital Inc.
(C) 416-884-9522
(W) 416-646-6789
g.buckley@jaguarcapital.ca

www.jaguarcapital.ca

@jaguarcapital
@gerardbuckley

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Incubes presentation preparing a pitch for investors 2012 12 19

  • 1. Preparing a Pitch for Investors This is your stage and you have to direct the performance..... If the audience doesn’t get it You are Done!
  • 2. “Traction is the new king. It is all about a simple business model, tested market fit and cross functional teams” Summary of Paul Singh’s presentation in India
  • 3. Agenda • Meet & Greet • Introductions • Preparing a Pitch for Investors • Q&A • Future Topics
  • 4. Who is your Audience?
  • 5. Who is Looking For a Design Award?
  • 6. Who has the most Logo’s in a Presentation Contest?
  • 7. 7 Steps To A Winning Pitch 1. Preparation is key 2. First Impressions matter 3. Embrace brevity 4. Know your numbers 5. Conduct market research 6. Be enthusiastic but professional 7. Practise makes perfect
  • 8. Kevin O’Leary’s View of what makes a Great Pitch • The founder is able to articulate their vision and the opportunity in 90 seconds or less • Here is my idea and here is how it is going to make you rich if you invest in it • They are able to articulate why they should be the team to execute the business plan • The team starts to sizzle and they emerge as leaders you can invest in
  • 9. TOOOOO Short .... No way Just too short on content • I have been a member of MLA’s Selection Committee for three years and > 80% of presenters run out of time • A Perfect round number is ten slides • With the right content you can present in 15 ‘ • If you can’t explain your business to a nine year old, you won’t be able to explain it to an investor
  • 10. 11 Insider Secrets to Pitch an Investor 1. Get the talking to listening ratio right 2. Be Curious 3. Don’t Name Drop 4. Keep so simple a 9 yr old would understand 5. Have a specific objective 6. Don’t take yourself so seriously
  • 11. 11 Insider Secrets to Pitch an Investor 7. Defend your assumptions 8. Avoid grandiose, absolute statements 9. Tell us the “ Hard Part” 10. Don’t start on Chapter 3 11. Let your Passion Shine “In Silicon Valley one in three hundred pitches get funded”
  • 12. Recommended Ten Slides For a Pitch
  • 13. Market Need and Solution • Define the problem or the market need, and outline your solution. Give “the elevator pitch” for your start-up
  • 14. Company and Business Model • Name of the Company and Organization • Products or services • How you will make money • Who pays you • Gross Margin
  • 15. Product & Technology • Define the technology behind your product or services (past, present and future development phases). • Make sure you communicate the relevance of your product/services to market needs. • Describe your technology patents and “secret sauce”.
  • 16. Industry & Market Sizing • Define the characteristics of the overall industry, market forces, market dynamics and customer landscape. • The investor needs to understand the industry of your company. • Use third party data.
  • 17. Marketing, Sales and Partners • Describe marketing strategy, sales plan, pricing and partnership plans. • Here is also a good place for a rollout timeline with key milestones.
  • 18. Competition and Competitive Advantage • List and describe your competition. • Describe some of your company’s competitive advantages.
  • 19. Management Team • Qualifications and roles of the top three executives and top three on your Board of Advisors
  • 20. Funding Requirements and Use of Funds • How much money (if any) has management put into the venture? (not sweat equity) • What is the level of capital funding sought during this stage? • What is the company willing to give in return for the investment?
  • 21. Financial Forecasts and Metrics • Project both revenues and expense totals for next three years, and past three years. • What is the current valuation of the company? • Show breakdown and growth assumptions • No Hockey Stick graphs please!
  • 22. Exit Strategy • What is the timeframe of Return on Investment? • What is the planned exit strategy? • What is the timeframe for the exit? • What is the rate of return expected for the investor?
  • 23. PRACTISE PRACTISE PRACTISE You have until Feb 28 to PRACTISE
  • 24. Remember, you are asking someone to give you $1,000,000.00 So you need to convince them you respect their time and interests as well
  • 25. Future Topics 1. Bootstrapping a Company & Exec Summary 2. Preparing a Pitch for Investors 3. Accessing Capital from a Angel Network 4. Terms to expect from an Investors Term Sheet 5. Forming an Advisory Board 6. Pros of Cons of accessing Venture Capital too early & some of the pitfalls to avoid
  • 26. Gerard Buckley, BBA, FICB, ICD.D President and CEO Jaguar Capital Inc. (C) 416-884-9522 (W) 416-646-6789 g.buckley@jaguarcapital.ca www.jaguarcapital.ca @jaguarcapital @gerardbuckley