pitch-training camp...term sheet due diligence negotiations on documen-tation initial discussions...

34
#seedforum www.seedforum.org PITCH-TRAINING CAMP Introduction to Investor Readyness & The Seed Forum Process

Upload: others

Post on 19-Jul-2020

10 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforumwww.seedforum.org

PITCH-TRAINING CAMP

Introduction to Investor Readyness & The Seed Forum Process

Page 2: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

3 aims

www.seedforum.org

• PRESENTATION SKILLS

• CONTENT – THE INVESTMENT PROPOSAL

• PLAN FOR LONG-TERM PRIVATE EQUITY

FUNDING FOR GROWTH

Page 3: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

3 deliverables

www.seedforum.org

• 7 MIN FULL PITCH

• 30 SEC POWER PITCH

• ANSWER THE QUESTION – WHAT IS

DISRUPTIVE ?

Page 4: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Agenda Pitch Training Camp

• Introductory brief

• Presentations in process groups – practice

• Workshop on main parameters for investor readiness

• Plenary lectures investor readiness

− Documents in the investment process

− The investment process – a detailed description

− Preparation for due diligence

− Negotiation techniques

− How to protect the competitive edge

− The art of networking

www.seedforum.org

Page 5: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Materials from the pitch training

www.seedforum.org

• POWER POINTS – LECTURES

• ALL TEMPLATES FROM THE TRAINING

• ADDITIONAL TEMPLATES

For your internal use only:

www.seedforum.org/seed-forum-pitch-

training-material

Page 6: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Investor mind-set

• What is the business concept? Does it fly NOW and WHY?

• Who is the team and why will you succeed?

• What is the market niche?

• What are the competitive advantages?

• What ‘s unique ?

• What is the business model (how do you earn money)?

• What is the capital need (now and later)?

• Why do you need funding ?

• How and when do I get my money back (what is the exit strategy)?

www.seedforum.org

Page 7: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Value drivers • Industry sector (size, growth,

margin etc.)?

• Commercial competence in the team?

• Team members – previous entrepreneurial and exit experience?

• IP?

• Scalable business model?

• High margins on sales ?

• Positive balance sheet?

• Recurring revenues?

• Multiple revenue streams ?

• Commercial proof of concept ?

• First move advantage ?

• Shorter exit period than 3 years ?

• Market disturbing exit strategy ?

• Comparable exits ?

www.seedforum.org

Page 8: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforumwww.seedforum.org

”THE WORLD IS THE HOME MARKET"

Process

Page 9: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

How to innovate ?

www.seedforum.org

• TO CREATE SOMETHING NEW ?

• TO IMPROVE THE EXISTING ?

Page 10: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

What is a growth company ?

www.seedforum.org

• TECHNOLOGY COMPANIES

• NON-TECH COMPANIES WITH A GROWTH

POTENTIAL

• LIFESTYLE COMPANIES

Page 11: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Born globals

www.seedforum.org

• START-UPS GO INTERNATIONAL MUCH

EARLIER THAN BEFORE

• PRIVATE EQUITY FUNDING IS THE NEW TREND

IN INTERNATIONALIZATION

Page 12: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

The concept

www.seedforum.org

• FUNDRAISING FORUMS FOR START-UPS AND

INVESTORS

• PITCH TRAINING CAMPS TO MAKE START-

UPS INVESTOR-READY

• A PROCESS TO REDUCE THE RISK ON

INVESTMENT

Page 13: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

The Process

www.seedforum.org

• NOMINATION

• PITCH TRAINING CAMP

• EVALUATION

• FUNDRAISING FORUMS

Page 14: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Investors mind-set

www.seedforum.org

• TO REDUCE THE RISK

• START-UPS INVESTOR READY

• HIGH QUALITY DEAL-FLOW

• SYNDICATE INVESTMENTS

• NETWORKING WITH INVESTORS

Page 15: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Types of investors

• Private financial investors

Friends, family and founders (FFF)

Private financial investors

Business Angels (BA)

• Structured capital

Seed Funds

Venture Capital Funds (VC)

Corporate Venture

Family offices

Private Equity (PE) Funds

www.seedforum.org

Page 16: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

The «Seed Gap»

www.seedforum.org

Page 17: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Start-up mind-set

www.seedforum.org

• FUNDING

• INTERNATIONALIZATION AND GROWTH

• COMPETENCE IN INVESTOR READINESS

• MIND-SET – THINK BIG

• B2B

Page 18: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Seed Forum 2002 – 2015

• 35000 investors in Seed Forum database

• 2000 nominators in the network

• 3500 members in the start-up alumni community

• More than 200 partners globally that contributes to Seed

Forum

• Investor matchmaking forums in 30 + countries

• Local forums in 5 countries

• Companies selected to present from 25 + countries

www.seedforum.org

Page 19: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Seed Forum Global 2015

www.seedforum.org

Page 20: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

A global concept

www.seedforum.org

• A NOT-FOR-PROFIT BEST PRACTICE INITIATIVE

• A CONCEPT FOR ACCESS TO NEW MARKETS

• EXPORT PROCESS FROM NORWEGIAN

INNOVATION

• A GLOBAL COMMUNITY FOR INVESTORS,

START-UPS AND KEY-PERSONS IN INNOVATION

Page 21: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

A complete concept

www.seedforum.org

• FUNDRAISING FORUMS

• SEED FORUM ACADEMY

• SEED FORUM ALUMNI

• BUSINESS ANGEL NETWORKS

• I-HUB ACCELERATORS

• ACCESS TO NEW MARKET SERVICES

Page 22: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Investor approach

www.seedforum.org

• YOUR OWN DIRECT TALKS

• WITH A BROKER/CORPORATE FINANCE

PARTNER

• FUNDRAISING FORUMS – SEED FORUM

• COMBINATION OF ALL ABOVE

Page 23: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

The forum format

www.seedforum.org

• LAST MINUTE BRIEF

• MORNING FORUM + NETWORKING

• EVENING RECEPTION

• LATE NIGHT SEED FORUM

• ROUND-UP SESSION

Page 24: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Round-up session

• Leads sorted in 3 priority groups

A: Immediate meetings

B: Immediate e-mails

C: Courtesy

• Creating concrete follow-up strategies

www.seedforum.org

Page 25: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

After the initial contact

Innledende

diskusjoner

Initial contact /

Seed FirumTerm Sheet Due Diligence

Negotiations

on documen-

tation

Initial

discussions

Investor

approval 2

Investor

approval 1

Investor

”go ahead”

General review of:

– The company

– Business plan

– Financial statements

/ budget

– Discussions with

management

Main terms and

conditions of the

investment

– Legal

– Technical

– Environment

– Market

– Transactions

Agreement

– Shareholders

Agreement

– Loan Agreement

– Employment

agreements

Closing

www.seedforum.org

Page 26: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Documents to prepare

• BS - Seed Forum Business Summary

• PP investor presentation

• IM - Investment Memorandum (and one-pager

summary)

• Miniature due diligence booklet

• Non-disclosure agreement

www.seedforum.org

Page 27: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

The concept of DRAMA

www.seedforum.org

Page 28: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

How to present persuasively

• Framing

• Hyping

• Enthusiasm

• The WOW factor

• Presenting as a ”Super profit” opportunity

AND – THE ART OF NETWORKING

www.seedforum.org

Page 29: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Development of pitch

1. Make standard presentation according to investors

mind-set

2. Find the trigger points / value drivers

3. Practice standard presentation

4. Make your presentation special

www.seedforum.org

Page 30: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Investor mind-set

• What is the business concept? Does it fly NOW and WHY?

• Who is the team and why will you succeed?

• What is the market niche?

• What are the competitive advantages?

• What ‘s unique ?

• What is the business model (how do you earn money)?

• What is the capital need (now and later)?

• Why do you need funding ?

• How and when do I get my money back (what is the exit strategy)?

www.seedforum.org

Page 31: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Value drivers

• Industry sector (size, growth, margin etc.)?

• Commercial competence in the team?

• Team members – previous entrepreneurial and exit experience?

• IP?

• Scalable business model?

• High margins on sales ?

• Positive balance sheet?

• Recurring revenues?

• Multiple revenue streams ?

• Commercial proof of concept ?

• First move advantage ?

• Shorter exit period than 3 years ?

• Market disturbing exit strategy ?

• Comparable exits ?

www.seedforum.org

Page 32: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Presentations

www.seedforum.org

• WHO ARE YOU ?

• WHAT`S YOUR BUSINESS?

• WHY ARE YOU HERE?

• WHY ARE YOU AN ENTREPRENEUR?

Page 33: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

Practicle run-through

www.seedforum.org

• INTRODUCTION OF PRESENTER

• DO NOT LOOK AT THE SCREEN !

• WARNING AFTER 6 AND A HALF MINUTE

• QUESTIONS AND COACHING

• WHERE TO START ?

Page 34: PITCH-TRAINING CAMP...Term Sheet Due Diligence Negotiations on documen-tation Initial discussions Investor approval 2 Investor approval 1 Investor ”go ahead” General review of:

#seedforum

IMPORTANT AGREEMENT

www.seedforum.org

• It is better that we comment things now that

you will hear it from investors later !

AGREE ?