the pitch - entrepreneurship 101

No one knows your product be1er than you.

1.   Storytelling

“I want to know more…”

What kind of Pitch are you?

From www.investorpitches.com

THE DISTRUPTER

THE FOUNDER

THE DREAM TEAM

THE DETECTIVE

THE EMANCIPATOR

THE PERFECT WORLD

1.  Storytelling 2.   Story Arc

THE STORY ARC

You can’t afford a bad hire

1.  Storytelling 2.  Story Arc 3.   Timing

May 2015 21

Innova7on & Entrepreneur MBA

The Artful Science of Pitching™

(India)

The Artful Science of Pitching™ May 2015 22 © 2012-‐2015 Frank Erschen, Inc.

What investors need to know from your pitch

What You Know About Your Business Elevat

or pitch

Product features & benefits How my product works Really big market size numbers

Really impressive

hockey sbck curves

Who we are

Our ask

Compebbon (or lack of) and amazing differenbabon

The problems we solve


P?

??


What You Know About Your Business Elevat

or pitch

Product features & benefits How my product works Really big market size numbers

Really impressive

hockey sbck curves

Who we are

Our ask

Compebbon (or lack of) and amazing differenbabon

The problems we solve


is the “story” you tell that will excite an investor so that they want

to learn more?

Baseline Story (with “accordion” properbes)

13 topics 13-‐16 slides

12 minutes (+/-‐)

Investable Story …

P?

??



1 – Introducbon 2 – Elevator Pitch 3 – Problem 4 – Problem / Market Size 5 – Solubon 6 – Why Now

7 – Go To Market (GTM)

8 – Compebbon / Differenbabon 9 – Revenue Model 10 – Projecbons 11 – Team 12 – Financing to Date / Ask /

Use of Proceeds 13 – Summary

Get Interest

Sell

Close or

Lose

Provide background informabon to capture interest

Convince investors that your idea is an invesbble business; you’re selling “the next meebng”

Round out your GTM plans with the rest of the story; here, you will either close the next meebng or lose their interest


Objecbve of Your Pitch

May 2015

A1racbng, negobabng and closing investment is a process

26



1. Title page

Investable Story

First impressions count

Introduce your company, yourself, and why you’re pitching P?

??



1. Title page – first impressions!

2. Elevator pitch Investable Story Keep it concise

(short sentences, watch syllables) Be clear & make it compelling

Pracbce PEGS:

Have them ready & Prac7ced (them: 15, 45, 90 seconds)

Show Energy and passion Goal-‐target* your audience Tell an understandable Story

P?

??


The Artful Science of Pitching™ May 2015 29

Elevator Pitch – Example O We have developed an opbmally-‐sized,

open, and standards compliant operabng system for the class A-‐compabble

and class B micro-‐processor units found in low-‐end intelligent-‐enabled appliances.

 

© 2012-‐2015 Frank Erschen, Inc.


Elevator Pitch – Example O We have developed an opbmally-‐sized,

open, and standards compliant operabng system for the class A-‐compabble

and class B micro-‐processor units found in low-‐end intelligent-‐enabled appliances.

P I’m Andy Preneur, founder of SmartCPU. We’ve developed a

best-‐in-‐class operabng system for smart devices like your toaster. We cost less and leave more room for the apps that make your toaster smart. We’re proven and I need investment

to grow.



2. Elevator pitch

3. The problems we solve Investable Story

P?

??


“Problem” Sets Deeper Context

Size of Problem = Business Opportunity Solubon

Value Proposibon

Go To Market


2. Elevator pitch

3. The problems we solve Investable Story

P?

??


If your aspirabon is bigger than your current focus,

show both

Bigger focus = Business potenbal Current focus = investable story


2. Elevator pitch

3. The problems we solve

4. Really big market size numbers

Investable Story

P?

??



2. Elevator pitch


4. Really big market size numbers

Investable Story

P?

??



2. Elevator pitch


4. Really big Market size numbers that make sense

Investable Story

Defining Market Size

It’s less about large numbers, more about logic and reasonableness

Link it to the problem you solve

Top down analysis:

check census, StatsCan, US Bureau of Labor stats, ...

Bo1om up analysis: market intelligence research, original research, …

P?

??



2. Elevator pitch


4. Market size numbers that make sense

5. Product features & benefits How my product works

Investable Story

P?

??



2. Elevator pitch



5. Product features & benefits How my product works

5. Our product … and why people will buy it

Investable Story

P?

??


Product value proposibon

Context: Your product is one FEATURE of your business!

IP*

How product solves the problem


2. Elevator pitch




6. Why Now?

Investable Story

3rd party research Original research

Why is now the right bme?

P?

??



2. Elevator pitch




6. Why Now?

7. How/when/where we will sell it (“go to market”)

Investable Story

Everything up to now is background

P?

??


Everything ater this is

closing the sale (aka next mtg)

GTM is where you are

selling the “next meebng”


VEGaS

May 2015 40

Validabon

Entry

Grow

Scale

bme

$ # etc

Graphically explains your Go To Market strategy & plan

If appropriate dedicate a page to a stage



Investable Story

P?

??


IP* Present a fair assessment of the

compebbve landscape and your

differenbabon

Never assume you have no compebbon. Focus on what makes your product great.

2. Elevator pitch




6. Why Now?


8. Compebbon (or lack of) & Differenbabon Amazing differenbabon


2. Elevator pitch




6. Why Now?


8. Compebbon & Differenbabon

9. Really impressive hockey sbck curves

Investable Story

P?

??



2. Elevator pitch




6. Why Now?



Really impressive hockey sbck curves 9. Pricing / revenue model

10. Revenue & cost curves that make sense

Investable Story

P?

??



2. Elevator pitch 3. The problems we solve

4. Market size numbers that make sense 5. Our product … and why people will buy it

6. Why Now? 7. How/when/where we will sell it (“go to market”)


Investable Story

9. Revenue model 10. Projecbons u

P?

??



t0 t1

#1

#0

If you want to replicate someone else’s sales pa1ern, check how much they raised to support the pa1ern!

May 2015 45 © 2012-‐2015 Frank Erschen, Inc.

Investable Story 2. Elevator pitch

3. The problems we solve 4. Market size numbers that make sense

5. Our product … and why people will buy it 6. Why Now?

7. How/when/where we will sell it (“go to market”) 8. Compebbon & Differenbabon

P?

??


9. Revenue model 10. Projecbons u





8. Compebbon & Differenbabon 9. Pricing / revenue model

10. Revenue & cost curves that make sense 11. Who we are (credibility, comfort)

Investable Story

Relevant experience Photos

Advisors/Board

P?

??


…and Gaps!







12. Our ask

Investable Story

P?

??








12. Previous funding, our ask, use of proceeds

Investable Story

P?

??








12. Previous funding, our ask, use of proceeds 13. Summary

Investable Story

“The 3-‐4 things I want you to remember from my pitch are …”

P?

??



Title Page Elevator pitch

Problem We Solve Size of Problem Product / Solubon

Why Now? Go To Market

Compebbon & Differenbabon Revenue Model Projecbons

Team Financing / Ask / Use of Proceeds

Summary


Pitch Topics and Flow

12 minutes, 13-‐16 slides

P

P


“Accordion” Pitch

Stretch and Squeeze as needed


Title Page

Elevator pitch

Problem We Solve

Size of Problem

Product / Solubon

Why Now?

Go To Market

Compebbon & Differenbabon

Revenue Model

Projecbons

Team

Financing / Ask / Use of Funds

Summary


Customer Relabonships

Key Partners

Key Acbvibes

Channels

Customer Segments

Revenue Streams

Cost Structure Key Resources

Mapping to Business Model Canvas

Value Proposibons

The Artful Science

of Pitching™

The Artful Science of Pitching™ October 2014 52

Value Proposibon

3 Problem Solved or Opportunity Created 7 Go To Market

Cost Structure 9 Revenue Model 10 ProjecWons

* Key Partners 7 Go To Market

† Problem 3 Problem Solved or Opportunity Created

4 Market Size

* Key Acbvibes

7 Go To Market

† Solubon

3 SoluWon / Product Customer Segments 4 Market Size 7 Go To Market * Key Resources

11 Team 12 Financing to Date, Ask, Use of Proceeds

† Key Metrics 7 Go To Market 10 ProjecWons

Revenue Streams 9 Revenue Model 10 ProjecWons

* Customer Relabonships 7 Go To Market

† Unfair

Advantage 11 CompeWWon / DifferenWaWon

Channels 7 Go To Market

*Green is Business Model Canvas †Orange is Lean Canvas Black is Both Small text is where Canvas element is used in The Ar^ul Science of Pitching framework

Mapping Aryul Science to Business Model & Lean Canvas

Business Model Canvas

Lean Canvas

(Alexander Osterwalder & Yves Pigneur) (Ash Maurya)

The Artful Science of Pitching™ May 2015

Pitch Framework Common Pitch Risks

Title page Intro company, you, purpose of pitch Poor first impression

Elevator pitch 15 second: establish your space Not crisp / isn’t capbvabng

Problem “The problem we solve is …” Too esoteric / not focused

Market size How big is this problem/opportunity? Irrelevant / size over substance

Solu7on “The way we fix this problem is …” Delivered like a product sell

Why Now? Why is now the right bme? Not convincing

Go To Market How you will build the business … Incomplete / not defensible

Compe77on/Differen7a7on “We’re be1er because …” Not convincing / incomplete research

Revenue Model “The way we make money is …” Not clear, not enough margin

Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported

Team Convey credibility … admit gaps Incomplete / don’t recognize gaps

Financing / Ask / UOP Past financing, current ask, use of $ Incomplete / asking for too much/li1le

Summary “The 3 things to remember are …” Oten not done

53






Elevator pitch 15 second: establish your space Not crisp / isn’t capbvabng *

Problem “The problem we solve is …” Too esoteric / not focused *

Market size How big is this problem/opportunity? Irrelevant / size over substance *

Solu7on “The way we fix this problem is …” Delivered like a product sell *





Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported




54








Market size How big is this problem/opportunity? Irrelevant / size over substance



Go To Market How you will build the business … Incomplete / not defensible *



Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported *


Financing / Ask / UOP Past financing, current ask, use of $ Incomplete / asking for too much/li1le *


55








Market size How big is this problem/opportunity? Irrelevant / size over substance *






Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported *




56



MARKETING PITCH •  Less Jargon, •  Grandma can understand, •  Media, •  About the company and product. •  NO ASK

1.  Storytelling 2.  Story Arc 3.  Timing 4.   Audience

Demo Day pitch

1.  Storytelling 2.  Story Arc 3.  Timing 4.  Audience

5.   Wri7ng Process


WRITE OUT A SCRIPT.


Logo/name


5.  Wribng Process 6.   Deck Design


This is a 12 pt font


Create Interesbng Slides


5.  Wribng Process 6.  Deck Design 7.   Presenta7on


Look good… feel good

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Take 10 big deep breaths

the pitch - entrepreneurship 101

Small Business & Entrepreneurship

story arc

kind of pitch

frank erschen

baseline story

elevator pitch example

understandable story

minutes investable story

title page investable