The 8 Minute Investor Pitch

Transcription

1 The 8 Minute Investor Pitch Cover sheet with company logo and tag line Basic tips: -No type smaller than 28 point-- the bigger, the better -No full sentences, brief points only -As many graphics as possible / as many graphics as it makes sense to include --business-focused presentation (vs. technology-focused) --Can a 10-year old understand what you do from this presentation? Anatomy of the 8 Minute Pitch Introduction The Problem The Solution The Technology Traction/ Milestones Market Size Sales Strategy Revenue Model Competition Management Financials The Offer 1

2 Introduction Company Name & Logo Contact formation One Line Description of what your company does Date Audience Presenters The Problem Define the problem and WHO has this pain Graphs Pictures The Problem Describe a problem scenario /usage case The goal is to get everyone nodding & buying-in 2

3 The Problem: Recorded Claims - Example Paper Claims File Weeks and Months Million Interviews (Per Yr) $350 Billion Claims Related (Per Yr) Process is Off The GRID 5 The Solution The Solution Overview of primary product or service that will solve the problem How do you alleviate the pain Use multiple slides if necessary see The Technology slide Short list of Feature/Benefits 3

4 The Technology The Technology Quick overview of the company s technology Tie to the Solution Do not exceed time limits- avoid in-depth technical explanations Product Photos, Screen shots Logical Flow and Architecture diagrams The Solution: Digital Service - Example Claims Rep Interviewees Bridge.WMA Minutes $15M Savings (Per Yr): Farmers Insurance 24 x 7 x 365 Availability Giant, Untapped Data Asset 8 4

5 Traction/ Milestones Slide Incorporated Mngt. Team in Place Provisional Patent Filed Beta test Paying customers Strategic channel partners Received A round Financing Customer Launch Traction/ Milestones Proof of Concept Tech. Development / Scale-Up Launch Today Be clear about the status of product development Market Size 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 (explain why) If you use 3 rd party figures, cite the source 5

6 Market Size - Example Total Addressable Market: US home broadband users ages 12 to 34 who actively consume internet video M M 18-28yrs 12-17yrs 29-34yrs Customers Customers Current Customers 83 startup companies like the following: Potential Customers Early stage technology companies raising between $250K to $2M Your Company, Inc. His Company, Inc. Her Company, Inc. 6

7 Sales Strategy 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) Revenue Model Revenue Model How do you make money? Who pays you? Licensed Software Hosted Solution, Monthly Fee + 2% of all transactions booked through our system We Sell Oxygen Molecules; Direct and Through a Channel Time and Materials Average Customer is worth $60,000 in annual Revenue 20% Customer $2500 Retailer $2000 Avg Customer Buys 24 Widgets per year 10% Distributor $1750 Gross Profit $1100 Gross Margin >60% This is an example for demonstration purposes only Cost $650 7

8 Revenue Model Revenue Model (alternative) Provide a diagram of your business environment (value chain) Who are the Stakeholders? How are they related? License Holders Components Technology Licenses License Revenue VAR Mfgrs. Company Finished Goods & Services Tech. & Mfg. Fees End User Sales Dollars Competition Competition Indirect Competition Summarize the current alternatives (other technologies or types of products) Direct Competitors (logos are easier to read than text) Use a matrix if possible You Competitor 1 Competitor 2 Energy output Weight Durability Cost 8

9 Management Management Team Name, Position Prior Company, Position (VP or above), Years focus on successes, exits Prior Company, Position (VP or above), Years Entrepreneurial experience (if any) Name, Position See above Name, Position See above Open positions VP Sales Head of QA 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 9

10 Dollars ($MM) Financial Projections Five Year Projections (Millions, US) Financials 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 -20 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Income This is an example for demonstration purposes only Financials Financial Projections (alternative) Revenue COGS Gross Margin OpEx Net Inc. Year 1 Year 2 Year 3 Year 4 Year 5 10

11 The Offer 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) Last slide: Company logo Your name and title Phone number address 11