Vc pitch template from 500 startup

Developing a Compelling
Pitch: 12 Slides that will Hook
Investors
Shai Goldman
SVB Capital
Entrepreneur Services Group
08/25/14 1

12 slides is all you need
1. Cover Page/Introduction
2. Overview
3. Problem
4. Market
5. Team
6. Technology/Solution
7. Customers/Revenue Model
8. Go to Market
9. Competition
10. Financials
11. Milestones
12. Summary
08/25/14 2

Company Name
Brief Business Description / Tag Line
Presenter Name and Contact Info
Good Example:
Good Example:
“Autonomy Dominates Enterprise Search”
“Autonomy Dominates Enterprise Search”
08/25/14 3

Overview
 Who are you?
 What is your role at the company?
 Why are you here? (i.e. how much you are raising?)
 How long have you been in business?
 How much have you raised and from whom?
 What are some major milestone reached so far?
An investor wants to know why he/she should be listening to
you. This is a good place to summarize the status of your
company
An investor wants to know why he/she should be listening to
you. This is a good place to summarize the status of your
company
08/25/14 44

The Problem
 What is the problem you are solving?
 Describe the pain points you are addressing
 Quantify the pain and how deep it is
 Why does the problem exist?
 Why has no one solved this before?
 What barriers exist?
 Why are you addressing them?
 What advantages do you have in solving this problem?
You want an investor to understand that your company is
solving a problem that really exists and that you have
the qualifications to solve it
You want an investor to understand that your company is
solving a problem that really exists and that you have
the qualifications to solve it
08/25/14 5

Market Size
 How big is the problem you are solving?
 Can you quantify it?
 Use a ‘Bottoms up’ approach
 Are there any references?
Investors want to know that this is a good opportunity
that they can build a big business around. You need
to show that the market is significant enough.
Investors want to know that this is a good opportunity
that they can build a big business around. You need
to show that the market is significant enough.
08/25/14 6

Team
 List key team members and brief history
 Highlight former work together and the length of the professional
relationships
 Highlight former startups or corporate experience
 Emphasize successes and/or relationships obtained that can be leveraged
as potential customers, advisors, or future acquirers.
 Especially highlight experience in venture backed companies with
successful sale/IPO
 Are there any gaps in your team that this funding will help to fill?
 Indicate total amount of FTEs
In this slide, you want to show why you are relevant. Link the
team’s skills/experience to the problem you are solving. No
need to go too deep except to answer above points plus any
name-brand affiliations that add credibility. Add Board
Members and existing investors to add credibility and
references.
In this slide, you want to show why you are relevant. Link the
team’s skills/experience to the problem you are solving. No
need to go too deep except to answer above points plus any
name-brand affiliations that add credibility. Add Board
Members and existing investors to add credibility and
references.
08/25/14 7

Technology/Solution
 What stage are you at?
 Pictures of your product / technology in action
 Screen shots of your software (if applicable)
 Infrastructure before/after your technology is implemented
 Visual/chart on how your technology works
 Say what your primary product does (e.g. ‘XYZ will enable virtual
environments to be used for project sharing across different countries.’)
 Say how this is an improvement (e.g. ‘This will allow for an average time
savings of 30 minutes/day for every FTE.’)
 Is your technology defensible?
You will want to focus more on what your solution does vs. how it
does it. Talk about the benefits - not just features, and don’t go too
deep on technical details unless the investor shows a real interest
or asks.
You will want to focus more on what your solution does vs. how it
does it. Talk about the benefits - not just features, and don’t go too
deep on technical details unless the investor shows a real interest
or asks.
08/25/14 8

Customers/Revenue Model
 Who are your customers?
 Define verticals
 Identify existing clients
 What is your pricing model?
 What is the LTV of your customers?
 How profitable are these customers?
Investors want to know who is buying your product and
why. They also want to understand the economics of the
customer and how much they are worth. Investors are
interested in companies who have momentum.
Investors want to know who is buying your product and
why. They also want to understand the economics of the
customer and how much they are worth. Investors are
interested in companies who have momentum.
08/25/14 9

Go to Market
 How will you reach your customers in an economical way?
 What is your distribution strategy?
 What channels will you use?
 Are there key partnerships you have locked up?
 How are you planning to build momentum?
No investor likes to spend money going to market the old-fashioned
No investor likes to spend money going to market the old-fashioned
way (paying for awareness and a large direct sales
way (paying for awareness and a large direct sales
force) – What resources/partnerships can you use to get there
faster/cheaper??
force) – What resources/partnerships can you use to get there
faster/cheaper??
08/25/14 10

Competition
 Who are your main competitors?
 How are they currently addressing the problem you are solving?
 In which key ways is your product superior?
 Where are your competitors in the development stage? (behind you in
development or major established market players?)
 What direction are they moving with their technology?
 What IP protection do you have?
An investor wants to know that you know the space very well,
they are depending on you to be the expert. You need to be up
and to the far right (referring to X/Y graph)!
An investor wants to know that you know the space very well,
they are depending on you to be the expert. You need to be up
and to the far right (referring to X/Y graph)!
08/25/14 11

Financials
 Provide financial information for current year and previous year
 Provide 5 year forward looking projections
 Provide top line revenues, costs, and margin figures
 Summarize again how you plan to execute on this plan
An investor wants to know that you understand how
much cash is required to break-even and that this is
a good business that they will be able to make money
through their investment.
An investor wants to know that you understand how
much cash is required to break-even and that this is
a good business that they will be able to make money
through their investment.
08/25/14 12

Milestones
• What stage are you at?
• How much have you raised to date?
• Who have you raised from?
• What have you accomplished with the funding raised so far?
• How much are you looking for now?
• What milestones will you achieve with the funding you are looking for?
• How long will those funds last (24 months, to profitability, etc.)
An An investor investor wants wants to to know know you you are are scrappy scrappy and and that
that
you you have have skin skin in in the the game. game. He/He/She She also also wants wants to
to
know know whether whether or or not not there there will will be be additional additional rounds
rounds
of of financing.
financing.
08/25/14 13

Summary
• This is the highlight of the story you are telling...
• What you are doing
• What problem you are solving
• Why it is such a big problem
• Why your solution is the best solution
• Why your team will be the one to succeed
• Why this investor is the right one for you
Recap the key elements of your presentation that would lead
the investor to believe this is a great opportunity to invest in
and to bring you back for a second meeting. Don’t be afraid to
ask for the next meeting.
Recap the key elements of your presentation that would lead
the investor to believe this is a great opportunity to invest in
and to bring you back for a second meeting. Don’t be afraid to
ask for the next meeting.
08/25/14 14

Appendix
 Detailed Financials
 Detailed competitive landscape
 Detailed value/customer, cost/customer
 Technology/IP
In case investors have more in depth questions, you
should have extra information available in the
appendix section
In case investors have more in depth questions, you
should have extra information available in the
appendix section
08/25/14 15

Presentation Delivery
 Know your deck – own your deck
 Be flexible – know where your slides are
 Don’t read the bullet points – have a conversation
 Use visuals / logos /graphics
 Preparation: Do your homework and know your audience
 Ask questions (e.g. any competing deals they are looking at?)
 Take notes
 No more than two of you should present
Practice, practice, practice and let your enthusiasm
and passion show!
Practice, practice, practice and let your enthusiasm
and passion show!
08/25/14 16

How To Get To Investors
• Develop a strategy for fundraising
• Find a connection through someone the investor trusts
• via exec of the investors portfolio company
• Banker (SVB)
• Lawyer
• Accountant
• Networking events (SDForum, SVB Client Events)
08/25/14 17

Sample Presentations by VCs
 Baris Karadogan-http://
baris.typepad.com/venture_capitalist/2006/11/pitching_to_vcs.html
 Marc Friend – http://docs.google.com/Present?
docid=dxhqvmk_18dh32shgz&skipauth=true
 Dave McClure - http://500hats.typepad.com/500blogs/2009/03/how-to-pitch-a-
vc-aka-startup-viagra-how-to-give-a-vc-a-hardon.html
08/25/14 18

Questions?
Shai Goldman
SVB Capital
Entrepreneur Services Group
sgoldman@svb.com
PH: (650) 812-0683
08/25/14 19

Vc pitch template from 500 startup

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