nvc feb 23 pitching your venture
DESCRIPTION
TRANSCRIPT
Pitching Your Venture
Frank Moyes Leeds School of Business
University of Colorado Boulder, Colorado
Frank Moyes 1
Goals for Tonight
Essential elements of your
presentation
Slide format
Frank Moyes 2
Present Your Plan
Make it real - tell a story
Focus on 3 points you want judges to remember Introduce points at beginning
Repeat in the Conclusion
Frank Moyes 3
Presentation Slides
10 Slides max
Back-up slides to help in answering likely
questions
Each slide conveys one point
Everything on the slide must support the point
~3 bullets max, short phrase
Use graphics
Frank Moyes 4
Killer Slide Presentation
Title Slide - Introduction
(3 key points)
Opportunity/Problem
Solution
Target Customer
Sustainable Competitive
Advantage
Competition
Marketing Strategies
Management
Financial summary
Funding
Risks
Conclusion (3 key points)
Frank Moyes 5
Title Slide
Name of your firm
Date
Name of investor firm
Optional: How much money is being
sought for this round?
Appropriate graphics (logo, etc.)
Frank Moyes 6
Introduction
Introduce team
3 key points want investors to
remember
Get their attention
Elevator speech (not on slide)
Value proposition (not on slide)
Frank Moyes 7
Opportunity/Problem
What is the need? Pain?
Validate by customer research &
interviews
Market size, growth & trends
Frank Moyes 8
Solution
Describe what you do
Key features
Value proposition
Benefits to target customer
Frank Moyes 9
Target Customer
Validation - use your customer research
Consumer
Demographics & psychographics
How make buying decisions
Business
Type of companies
How make buying decisions
Frank Moyes 10
Sustainable Competitive Advantage
Differentiation
Resources and capabilities
Identify your competitors
Current & future
Direct & indirect
Frank Moyes 11
Marketing Strategy (choose critical steps)
High level description
Distribution - channel
Positioning
Sales strategies
Communications
Pricing strategy
Roll out plan
Partnerships
Frank Moyes 12
Management
Key managers
Backgrounds & accomplishments
Who is missing & how address
Boards
Frank Moyes 13
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues($000) $1,000 $2,500 $5,000 $15,000 $25,000
Gross Profit 25% 35% 36% 36% 37%
Operating Expenses 35% 40% 30% 25% 20%
Net Income -10% -5% 6% 11% 17%
Cash Flow ($000) (500) (1,000) 200 1,000 3,000
Investment ($000) 500 1,000
Debt ($000) 500
Customers 200 600 1,100 4000 6000
Headcount 4 15 40 60 90
Financial Summary
Frank Moyes 14
Cash Flow
-6
-4
-2
0
2
4
6
8
10
PP&E Operating CashFlow
$ Millions
Year 1 Year 2 Year 3 Year 4 Year 5
Risks
2 or 3 that are unique to you venture
What can go wrong & what must go right?
How will you mitigate
Frank Moyes 16
Funding
How much cash do you need?
Sources & Uses
Valuation
Exit if appropriate
Frank Moyes 17
Hecho en Casa Sources & Uses Statement
Financing Amount Ownershi
p
Uses of Funds
Round A (June
2005)
$315,000 41.0% Salaries $221,800
Inventories $ 60,100
Working Capital $ 16,400
Capex $ 15,000
Other $ 1,700
Round B (Oct.
2006)
$310,000 15.5% Salaries $197,100
Inventories $ 79,200
Capex $ 30,000
Other $ 3,700
Round C (Q3 2007) $170,000 4.0% Salaries $122,000
Inventories $ 41,700
Capex $ 6,300
Frank Moyes
18
Conclusion
Summarize 3 key points
Good investment
Questions
Frank Moyes 19
Questions & Answers
Answer in 30 seconds or less
Decide beforehand who will answer what
questions
Only one person answer
Unless team member is in trouble,
If don’t like your answer, they will ask again
If you don’t know the answer, say so
Frank Moyes 20
Backup Slides
Revenue Model
Customer research summary
Key benchmarks
Key financial assumptions
Frank Moyes 21
Suggestions
Use your customer surveys to support
Use charts, graphs, simple tables
Tell a story
Don’t be boring
Frank Moyes 22