The Ten Slide Presentation Template*

Transcription

1 Slide #1. Business Positioning Statement The Ten Slide Presentation Template* It is important up- front to understand the business positioning of a new or early stage enterprise. This includes understanding where the enterprise s products and services fit in the overall value chain of the market sector it addresses. It should include the following: Enterprise name (and graphics, if appropriate) One- sentence what we do statement (positioning or elevator pitch)* Presenter s name(s) Fill- in- the- blanks example for an opening positioning statement: (name of enterprise) has developed a product and/or service for (identify users) that increases (e.g., sales, test scores, job creation) and (e.g., reduces, improves recovery of) costs through (the core capability of the venture).

2 Slide #2. The Market The next substantive area that needs to be addressed is the size of the market and the needs of the users. The higher these markers are the better. Most angel and VC investors look to invest in ventures they believe can grow to dominate strong niche markets and are capable of achieving at least a ten- fold increase in annual revenues over 5-10 year time horizon. For those seeking corporate strategic partners to help develop the product and grow the business it will be particularly important to identify who they are early, and also the potential for converting these partners into eventual customers. In addressing the need and the size of the market, think about what creates the demand for your solution (the benefit users will pay for), the characteristics of the entities or users that need your solution, and begin to quantify the opportunity in terms of the number of prospects that have the need. You should be eventually able to explain how the market is growing and why. In this slide describe the particular segments of the market that your solution seeks to address, keeping in mind what distinguishes these segments both from the broad market and from each other, and demonstrate how urgently users need or want your solution. Answer the question, why do users want what we have? *Adapted from the Tech Coast Angels, Orange County

3 Slide #3. The Solution The next area to focus on is the solution, or the product(s) and/or service(s) you have developed which you believe are uniquely suited to solving the users needs. Clearly explain how your product(s) and/or service(s) work, what user need they satisfy, and what users will be buying. This will be the place to describe your technology innovations, and how they will be game changers in providing solutions to customer problems, establishing new markets and a customer base to support the business. This will be particularly important to corporate venture partners who are seeking innovative technologies to expand their business. In later rounds you will need to explain where your product fits within the whole solution to the users need, as the users themselves see it. You will have to be specific about what services, technologies, or platforms ( enablers ), if any, will be required by the user in order to make what you offer work, including any system, behavioral or procedural conversions required to realize the key benefits. In your thinking the key is to clearly focus attention on your product s/service s value- added proposition and position. In later judging rounds you will have to explain specifically what portion of the whole solution you provide and whether users will see your product as being the main component of the solution. Describe the benefits delivered, justifying the cost of the whole solution vs. the expected benefits.

4 Slide #4. Competitive Position Experienced investors and corporate venture individuals recognize that competition exists everywhere and at all times. They need to feel confident that the entrepreneurs and enterprises they invest in share a deep respect for their competitors and have given a great deal of thought about how to deal with them. It is especially important to address the following classic three barriers to the adoption of new products and services: Big Dogs What are the huge, well- known enterprises that have existing products and/or services and well- established relationships with your target users doing? How will they react to your initiatives? Inertia What will it take to get users to change what they are using / doing today? Innovators What competitors might leapfrog your solution with equal or better solutions? You will need to think about and in later rounds explain how you propose to win against the best of these. You will also be expected to describe your strongest competitive barriers, i.e., how you plan to mitigate being overrun and your user base usurped by better- known or better- funded competitors.

5 Slide #5. Marketing / Sales / Support Describe how you propose to reach your target users in the following key areas: Marketing To raise users awareness of your product/service and stimulate their interest in buying Sales To give buyers (buying decision- makers) a convenient way to find out the details and place an order Support To help customers understand your product before buying, during installation and in use

6 Slide #6. Business Strategy List the 3-5 year goals of the business (e.g. secure partnerships, identify and secure customers, achieve profitability, hiring goals, secure x rounds of investment). IN later rounds you will be expected to identify the most important steps you will need to undertake to reach these goals. What is particular important to investors will be what steps you will need to take to achieve positive cash- flow, how you plan to get there, and how long it will take. You will also be expected to Identify specific steps you need to take in order to provide exit opportunities to your early stage angel and VC investors.

7 Slide #7. Financial Projections Provide a five- year P&L statement with clearly defined and easily understood assumptions similar to this: Financials ($000's) Enter actual and projected values (in $000's, integers only) for the past year, the current year, and for each of the next four years ("1st year" is this calendar year"). COGS=Cost of Goods Sold. M&S=Marketing and Sales. PBT=Profit before Tax. Enter the amount of capital raised in the past year and the amounts projected to be raised in each of the next five years. Revenues Past Year 1st Year 2nd Year 3rd Year 4th Year 5th Year COGS R&D M&S G&A PBT Cash Flow Capital Be prepared to explain dramatic numbers, such as: Instant market penetration & dispersion Hockey stick growth Unprecedented margins Long periods of negative cash- flow ( goodness is positive cash- flow in 6 12 months)

8 Slide #8. Funding Sought Clearly specify the amount if money you will be seeking, both grant and investors, and the major uses of funds for each round of financing prior to exit, including this round, prior rounds, and future rounds if needed. Describe the size and composition of your current burn- rate. Do not expect outstanding obligations or repayment of debt to be accommodated by funds raised from seasoned angel and VC investors. Provide a capitalization table similar to this: Financing ($000's) Enter (in $000's, integers only) the amounts of cash invested by the founders and prior investors. Enter the last company valuation (post- financing), the amount of funding sought and committed in this round, and the proposed pre- money valuation. For example, if you are seeking $1 million and expect to sell 20% of your company, the pre- money value would be $4 million (The post money value would be $5 million). Indicate your expected future funding needs (prior to an IPO or acquisition) and your expected exit vehicle (IPO, acquisition, etc.) Founders Prior Investors Last Valuation Sought Committed Pre- Money Future Needs Likely Exit Specifically explain: How much hard- money (cash) have the founders put in? How much cash have Directors and Advisory Board members invested? What equity is available to recruit key executives? Do you have a pre- money valuation for this round? If so, how did you arrive at it? What comparables are you using for your proposed exit?

9 Slide #9. Management Focus on the management team, in particular, since this usually determines the ultimate success of a new venture. Although your venture may be too early to have established these roles, it is important to think about who can play these roles now and how you would build out your team as the company grows: CEO Prior entrepreneurial experience in similar businesses CTO Proven know- how in core technologies CMO Proven knowledge of the target markets; strong relationships with channel partners and/or key industries CFO Prior merger/acquisition and/or LBO experience Identify who is full- time and who is part- time or on the sidelines waiting funding. Identify Board of Director and Board of Advisor members, highlighting any strategic members value- added.

10 Slide #10. Exit Strategy Describe what you believe will be your most likely exit scenario for the current round of investors: Cite recent examples of successful comparable offerings Explain why you believe the opportunity will remain when your enterprise is ready If you anticipate merging or being acquired, identify the two or three most likely merger or acquisition candidates, explain why they would be interested, and, if possible, describe recent acquisitions of comparable ventures and their deal value Describe any relationships you already have with current directors, potential acquirers, investment banks, or VCs that might facilitate your liquidity plan.