How to Write Business Plan and

Pitch InvestorsSteve Bell - Trilogy Ventures China

http://blog.trilogyvc.comhttp://stevebell.renren.com

RenRen: 史蒂夫 steve bell

Portfolio Trilogy VC

ZoZou.cc

Raising early stage capital in 2000

EASY

Raising early stage capital 2011is hard

•“Call me when you get bigger”

•“Let’s talk again when you have proven your business model”

•“We can met after you prove how it scales”

Develop the plan•Problem? What is it?

•Solution? Show it

•Market? How is it big?

•Vision? What are you building?

•Business Model - How does it make money

•Milestones - Get to profit or more investment

what is better.....

Raise < 1,000,000 ?

Or

Raise > 1,000,000 ?

Low capitalForces Focus

2000’s capital INTENSE models are

DEAD

✤ Only external proof matters

✤ need 10,000,000 something (RMB, users)

✤ show the business can be HUGE

✤ before running out of money

✤ “many tries” do do do do....

•10 -> 1000 ->1000000

EXTERNAL PROOF

Don't invest hereDate: FEBRUARY 16, 2011 1:39:34 PM GMT+08:00To: Stephen Bell <steve@trilogyvc.com>Subject: Re: Throw Out Your Business Cards, xxxxx iPhone App Is Now Live

sure, but for 10x less we dont need investment, we can invest ourself

And we can forget about a nice office, hiring 2nd group Eng people, all the symbian version, all the marketing, all the IP, legal and so on..

Invest Here:Example Companies - getting to

10,000,000

• http://www.DroidHen.com

• http://www.Lezi.com

• http://www.Jiathis.com

• http://www.Fenzhi.com

Lezi.com

• ZJU student team - 3rd startup

• About 1,000,000 rmb investment

• Profitable under 6 months

• 2 years later.... 5,000,000 per month rev. , global, 250 people, Growing....

Jiathis

• Social sharing

• 9 months old

• 1/2 china Internet population reached

• 80,000 websites use

• 500,000 unique IP per day share

Only External Results Matter

Sure I have results - but I want to GET

FUNDED!

How to Pitch

•Be Simple

•10 Slide Deck

•No more than 20 words per slide

10 Slide Deck

10 Slides1. Title: Investor Presentation - Company Name, contact info

2. Vision

3. Problem - Clear statement

4. Solution - “Wow Cool”

5. Market Size - How Big

6. Team

7. Progress to date

8. Grow Plan

9. Raising XXXX RMB to do ________

10 Slide Deck

• About EXTERNAL RESULTS

• SIMPLE SIMPLE SIMPLE

• FEW WORDS – Simple.

• 80% of Slides EXTERNAL RESULT

Slide 1 - Name

• Company Name

• Founders contact info

• Title – Investor Presentation

Slide 2 - VISION

• I see a world where _______

• BIG Vision

• Investor -> WOW

• Change the World

Slide 3 - Problem

What is Problem you solve? Who do you

solve it for?

Slide 4 - Solution

• Show it – (one slide)

• One thing

• Simple

• Graph showing EXTERNAL METRIC growing exponentially

• SHOW CYCLES – fast iterations

• Real Customers using product

Slide 5 – Progress to Date

• Who SPECIFICALLY are your customers – describe them intimately and tightly

• How big now?

• How does it get bigger

Slide 6 – Market Opp

• Can this team make a huge company?

• Full Team

• Relevant Experience

• Results to prove it

Slide 7 – Team

• How do you get customers

• NO Marketing Spend!!!!

Slide 8 – Grow Plan

• How Much for XX Months

• Show what RMB does

• How many new customers? Etc.

• External METRICS

Slide 9 – Raising RMB

If you wanna do MORE, you gotta do

LESS

Who to Pitch• Size - Less than two million RMB

• Angels

• Seed Stage Fund

• More than five million RMB

• early stage VC

• Sector - Lot’s of public info on who is investing in what sectors etc..