Introductory VC Pitch

Month, Year

Company Name

Page 2

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 3

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 4

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 5

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 6

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 7

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 8

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 9

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– Company Name: – Pain Point: – Solution/Features: – Result/ROI:

Page 10

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 11

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 12

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 13

Sample Economic Model

• Specify the cash flow breakeven point• Monthly burn rate: gross & net

Page 14

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 15

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 16

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 17

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 18

Summary

• Bullet point summary of deal highlights– Why is now the time to invest?– Key momentum indicators – Market Size and Opportunity– Team Qualifications/Previous Success– Barriers To Entry