SlideShare una empresa de Scribd logo
1 de 44
Descargar para leer sin conexión
Investment Readiness and
Raising Funds For Your Venture.




Startup BootCamp - Day 2
Agenda
2:00 - 3:00 - Presentation
3:00 - 4:30 - Work on Pitch Deck
Workshop #4
Entrepreneurs Everywhere
Worrying About Financing!
What We'll Cover in This Workshop
● Defining how much funding you need.
● Investment Readiness Checklist (what you need to do
   before approaching investors).
● Sources of funding
● Techniques on how to develop a pitch deck.
Economic Feasibility
● At what full cost can it be done?

● At what price would there be significant
  demand for it?

● Is there enough of a gap between this
  price and full costs to allow for profit?
Economic Feasibility
● What will the business generate once it is
  up and running as a “going-concern?”

● How much financing will it take to get to
  that stage?

● What return on investment will that be?
Projected Income Statement
● Sales Estimate
● Cost of Sales
● Operating Expenses
  ○ Fixed
  ○ Controllable


● Profit before interest and taxes
Projected Sales
● Top down approach
  ○ What share of the market can we capture?
    ■ From which competitor(s) will this be taken?

● Bottom up approach
  ○ How much business from each entity in our
     target market do we need?
     ■ Reality check against present buying behaviour?

● Pricing will be a factor in both cases
Operating Expenses
● Fixed expenses
  ○ Unavoidable, and essentially uncontrollable
    ■ Utilities, Taxes, Licenses, Facility costs

● Controllable expenses
  ○ Necessary, but timing and amount can be
    managed
  ○ Marketing expenses must support sales
    estimate
  ○ Must include fair provision for owners’ work!
How Much Do You Need
(Much) More than you think!

Inadequate financing is the primary cause of new
venture failures
Investment Readiness

Investors like to see:
● Managers with a stake in the business – Investors
   want to see key managers ‘in the loop’ and working
   towards capital growth, not just on a salary.
● Healthy balance sheets – Debt as part of working
   capital is fine, but investors are looking to invest to grow
   and develop your business, not pay off your debts.
● Realistic projections – Your cash flows and financial
   projections must be open, detailed and realistic, as they
   will be intensely scrutinised by investors.
Investment Readiness
An Excellent Team. A great management team can add to
the good impression created by sound financials or a
revolutionary product.
● Investors look for a well-knitted, adaptable and
   committed team that enjoys what they do.
Checklist
See
http://www.slideshare.
net/startupJamaica/investment-ready-checklist
Fundraising Tips for Startups
● Put your startup on AngelList – (angel.co)

●Check out raising capital for startups and what to
 include in your pitch slides. This online course consists of 8
 lectures and over 6.5 hours of content (including a sample
 pitch deck) . $19.

●PitchEnvy has over 20 recent pitch decks that raised
 money!
Fundraising Tips for Startups
 Create an intro video as a teaser
 ● Helps establish the concept of your startup in a
    clear/clever/fun way for users and investors alike.
 ● PowToon, an Israeli startup, is another free tool to help.

●Equity Crowdfunding
 ● FundersClub (US),Seedrs (UK), and CrowdCube (UK,
   mostly non-tech)
 ● anyone (not just accredited angel investors), put small
   sums as little as $1000 towards an equity investment in
   a startup.
Fundraising Tips for Startups
Donation Crowdfunding
● Platforms like Kickstarter, Rally and IndieGogo are
   essentially early-sales platforms

● Works especially well for physical products.
Fundraising Tips for Startups
Join an Incubator/Accelerator Program
● Startup Chile accepts international applicants.
Pitch Deck vs. Business Plan
Feasibility Study
● Can it be done (realistically)?

Business Plan
● I / we can do it successfully (and here’s how)

Pitch Deck
● I / we will make it happen (if you invest)
Pitch Decks: Keep It Simple!
Keep it Simple
1. Have a great one-liner

2. Know your audience

3. Keep it to 10-15 slides

4. Beware of the demo

5. Expect the deck to be shared
Keep it Simple
1. Find the Sweet Spot
Get Specific! Focus on the problems you solve… “my
clients are typically struggling to…and I help them…”

2. Speak Like a Human Being
Yes, you should prepare and practice your pitch, but it
should always be simple, natural, and in plain English.

3. Exude Confidence
When answering what you do, don’t mumble through the
response. Definitely never sound as if you’re apologizing.
Keep It Simple
4. Ask Questions
The best way to be remembered is to build a connection.
For this reason, never consider the other person “your
audience.” Ask them a few questions as well.

5. Practice, Practice, Practice
While some people may look like natural networkers, in
actuality, very few create a perfect pitch on the fly.

And don’t worry about making mistakes.
Components of a Pitch Deck
1. Elevator Pitch
2. The Problem
3. Your Solution
4. Market Size
5. Business Model
6. Proprietary Tech
7. Competition
8. Marketing Plan
9. Team / Hires
10. Money / Milestones
1. The Elevator Pitch
● Short, Simple, Memorable: “What, How, Why.”
   ○ “We’re X for Y” is ok if 1) it’s true 2) X & Y are well-known
● Max 3 key words / phrases, 2 sentences.
   ○   “SlideShare is the world’s largest community for sharing presentations.
   ○   “TeachStreet is a place to teach or learn anything.”
   ○   “Mint.com is the free, easy way to manage your money online.”

● Logo and/or Image ok but not rqd
● No “Inside Baseball” lingo
   ○ make it easy for non-experts to understand.
● Smile. It’s ok to have fun when you pitch ☺
Zap Meals
“ZapMeals is an online meal order & delivery service
matching hungry consumers with great local food
preparers.”

“We’re eBay for takeout orders.”
2. The Problem
What is The Problem? Make it Obvious.
  ● “Ouch. Yeah, I have that too…”

Who has it? How Many? How do you know?
  ● stats, examples, research, links.

“Painkiller not Vitamin”
    ● Vitamins are great, but you NEED painkillers. BAD.
Zap Meals
Problem: Great Fast Food… Isn’t Either.
Preparers
●   Is there a market for my cooking?
●   Restaurants have high startup costs
●   Delivery is tough to do fast, warm, & well


    Consumers
●   Tough to find good fast food
●   What’s the best / cheapest / fastest place to order
    from?
●   It’s been 30 minutes – where’s my order?
3. Your Solution
Describe why your Solution:
   ● Makes customers very happy
   ● Does it better, different than anyone else
   ● Remember “NICHE to WIN”
(Customer Case Study can also go here)
Demo of Product
● If you’re doing live demo: PRACTICE! PRACTICE!
  PRACTICE!

● Expect demo to FAIL – in multiple, interesting ways --
  how will u handle it?

● Always have a backup (screenshots, local video)

● Expect to be interrupted
Demo of the Product
4. The Market
Bigger is Better

Top Down = someone else reported it
   ● Forrester, Gartner, Your Uncle

Bottom Up = calculate users/usage/rev$
   ● Avg Txn = $X
   ● Y customers in our market
   ● Avg customer buys Z times per year
   ● Market Size = $X * Y * Z annually = a big friggin’ #
   ● Market growing @ 100+% per year
5. The Business Plan
Describe Top 1-3 Revenue Sources
   ● Prioritize by Size, Growth, and/or Potential
   ● Cite current market activity / customer behavior as
      proof

Show How You Get to Break-even (or Profitable)
   ● Ideally, on the current round of funding you’re raising

Common Revenue Models
  ● Direct: ecommerce, subscription, digital goods,
    brands
  ● Indirect: advertising, lead gen, affiliate / CPA
Zap Meals: 3 Ways to Make Money
●   Transactional:
     ●   charge a 15% food prep fee (min $1)
     ●   charge a 15% food delivery fee (min $1)
●   Advertising:
     ●   charge small preparers by click-thru (SEM for food)
     ●   charge larger preparers for premium / sponsored listings
●   Supplies, Equipment, Insurance:
     ●   provide supplies, education for ZapMeals preparers
     ●   free licensing to ZapMeals preparers who buy $250 eqpmt
     ●   insure against food inspection issues via large group
6. Proprietary Tech, Expertise
VCs *really* like unfair advantage
   ● big market lead
   ● experienced team
   ● ex-Google PhDs
   ● core / “breakthrough” tech
   ● “defensible” IP / patents
   ● “exclusive” partnership
   ● great sales/market
Zap Meals Proprietary Technology
ZapMeals has developed a proprietary least-cost routing &
matching algorithm for ordering & delivery

Our Secret Sauce:”Search by Takeout Time”
    ●   estimated food preparation time (historical)
    ●   delivery distance (how far away
    ●   delivery provider (on-time record)
    ●   delivery stats real-time via GoogleMaps (+ GPS)
7. Competition
●   List all top competitors
     ●   (especially top ones; we’ll find them anyway)
●   Say how you’re better, or at least different
     ●   If not better or different -> “NICHE TO WIN”
     ●   position(-ing) matters
●   2-axis graph is trite, but still useful
     ●   see next page for example



●   useful comparisons / differentiation:
     ●   simple vs complex
     ●   value vs cheap (tougher to prove tho)
     ●   cheap vs expensive (but careful you don’t race to bottom)
     ●   consumer vs enterprise
     ●   open vs proprietary (in this case, open usually better… but not always)
8. Marketing Plan
    Ok, so your product / technology rocks, but…
     … how do you get customers / distribution?

    lots of channels, lots of decisions… choose a few:
●   PR
●   Contest
●   Biz Dev
●   Direct Marketing
●   Radio / TV / Print
●   Dedicated Sale
●   Email
●   SEO / SEM
●   Blogs / Bloggers
●   Viral / Referral
●   Affiliate / CPA
●   Apps
Marketing Plan

● Online
  ● Partner with notable foodie bloggers
  ● Adwords Campaigns to regional west coast metros
  ● Generate SEO traffic via food listing pages
● Offline
  ● Distribution Partnership with CA Restaurant Assoc.
     (700 in SF)
  ● Contest for Best Ethnic Restaurants (10 x 10
     winners, prizes)
  ● PR stunt / TV spot for “Fastest Food Delivery in San
     Francisco”
9. The Team
Key People
 ● Geeks with deep technical background
 ● Entrepreneurs who have sold companies
 ● Sales/Marketing who Make it Rain

Also Identify:
 ●  Key Hires you Need but *Don’t* Have, and…
 ●  … you’ve got candidates lined up in those areas
 ●  ... ready to hire as soon as you close funding
 ●  … or at least job descriptions / est. salary
10. Money, Milestones
●   How Much Money Raised / Now Raising?
     ●   Show 3 Budgets: Small, Medium, Large
     ●   Show how you’ve got “Small” already lined up
     ●   Show “Optionality”, Competitive Interest (if poss.)
●   What Will you Do with the Capital?
     ●   Key Hires (Build Product)
     ●   Marketing & Sales (Drive Revenue)
     ●   CapX, Ops Infrastructure (Scale Up)
●   Map Out Achievable Milestones with Non-Linear Increase in Value
     ●   Show what will get you to next milestone (product, customers, hires)
     ●   Show how the capital you have is more than adequate
     ●   Show substantial UPTICK in value when milestone is achieved
          ●   functional product
          ●   initial customers / revenue
          ●   break-even or profitable
Financials
Raised $200K Seed round Jan 08 @ $1M valuation
     ● angel investors: Ron Conway, Larry Page, Bill Gates
     ● built initial prototype; functional use with 1000 customers

Seeking $500K-$1M Series A round @ $2.5M valuation
    ● already closed $300K
    ● meetings with 5 other VCs in next 2 weeks
    ● targeted closing in 4 weeks

Use of Proceeds / Product Roadmap / Goals
    ● $300-500K: hire 2-3 engineers, 1 marketing / sales, .5 PT customer
        support
    ● $200-500K: marketing campaigns & customer acquisition
    ● get to 25K customers, $1M revenue by end of year
    ● estimated break-even in Q4 / 09 @ $100K / month
One Last Thing
Close with a Bang
Leave ‘em Wanting More
Show Interest in next date
Leave them a Memento
   ● educate them on market report
   ● send link to private beta
“oh, and One More Thing...”
More Info
●   Dave McClure:
    ○   Startup Metrics for Pirates (AARRR!)
    ○   ZapMeals Sample Pitch Presentation
    ○   Master of 500 Hats Blog: “Greatest Hats” (top blog posts)

●   Steve Blank: 4 Steps to Epiphany, Customer Development Methodology

●   Eric Ries: StartupLessonsLearned

●   Sean Ellis: Startup-Marketing.com

●   Andrew Chen: AndrewChenBlog.com

●   Brad Feld, Jason Mendelson: AskTheVC.com

●   VentureHacks.com

●   StartupCompanyLawyer.com

Más contenido relacionado

La actualidad más candente

What Makes a Good Business Idea Good?
What Makes a Good Business Idea Good?What Makes a Good Business Idea Good?
What Makes a Good Business Idea Good?LaunchPath Innovation
 
Presentation - Mr. Tomas Martunas
Presentation - Mr. Tomas MartunasPresentation - Mr. Tomas Martunas
Presentation - Mr. Tomas MartunasMobileNepal
 
Innovators Jumpstart 2015-NBIF (The Perfect Pitch)
Innovators Jumpstart 2015-NBIF (The Perfect Pitch)Innovators Jumpstart 2015-NBIF (The Perfect Pitch)
Innovators Jumpstart 2015-NBIF (The Perfect Pitch)PlanetHatch
 
Augusto Coppola Business Plan-innovation-lab
Augusto Coppola Business Plan-innovation-labAugusto Coppola Business Plan-innovation-lab
Augusto Coppola Business Plan-innovation-labAndrea Genovese
 
Writing an effective business plan
Writing an effective business planWriting an effective business plan
Writing an effective business planBenno Groosman
 
How to Attract and Convince Investors (2014)
How to Attract and Convince Investors (2014)How to Attract and Convince Investors (2014)
How to Attract and Convince Investors (2014)Erling Løken Andersen
 
How to build great products - TechSaturdays
How to build great products - TechSaturdaysHow to build great products - TechSaturdays
How to build great products - TechSaturdaysSebastian Kwiecien
 
Defining Focus Areas of Growth
Defining Focus Areas of GrowthDefining Focus Areas of Growth
Defining Focus Areas of GrowthSanjay Singh
 
Converting ideas into businesses
Converting ideas into businessesConverting ideas into businesses
Converting ideas into businessesPrajakt Raut
 
Startup Business Series: Scaling Your B2B Sales
Startup Business Series: Scaling Your B2B SalesStartup Business Series: Scaling Your B2B Sales
Startup Business Series: Scaling Your B2B SalesAmazon Web Services
 
Presentation pivot practicum
Presentation   pivot practicumPresentation   pivot practicum
Presentation pivot practicumMilkaLopezMercado
 
BOOST YOUR BUSINESS: (1) opportunity knocks
BOOST YOUR BUSINESS: (1) opportunity knocksBOOST YOUR BUSINESS: (1) opportunity knocks
BOOST YOUR BUSINESS: (1) opportunity knocksMichael McKenna
 
Buying an existing business - Lecture 14
Buying an existing business - Lecture 14Buying an existing business - Lecture 14
Buying an existing business - Lecture 14MuhammadSarmadHafeez
 
Creative marketing tactics
Creative marketing tacticsCreative marketing tactics
Creative marketing tacticsVivekPanchal38
 
Oak fi-31.03.2016 - fundraising
Oak fi-31.03.2016 - fundraisingOak fi-31.03.2016 - fundraising
Oak fi-31.03.2016 - fundraisingMika Marjalaakso
 

La actualidad más candente (19)

What Makes a Good Business Idea Good?
What Makes a Good Business Idea Good?What Makes a Good Business Idea Good?
What Makes a Good Business Idea Good?
 
Presentation - Mr. Tomas Martunas
Presentation - Mr. Tomas MartunasPresentation - Mr. Tomas Martunas
Presentation - Mr. Tomas Martunas
 
Innovators Jumpstart 2015-NBIF (The Perfect Pitch)
Innovators Jumpstart 2015-NBIF (The Perfect Pitch)Innovators Jumpstart 2015-NBIF (The Perfect Pitch)
Innovators Jumpstart 2015-NBIF (The Perfect Pitch)
 
Augusto Coppola Business Plan-innovation-lab
Augusto Coppola Business Plan-innovation-labAugusto Coppola Business Plan-innovation-lab
Augusto Coppola Business Plan-innovation-lab
 
Writing an effective business plan
Writing an effective business planWriting an effective business plan
Writing an effective business plan
 
How to Attract and Convince Investors (2014)
How to Attract and Convince Investors (2014)How to Attract and Convince Investors (2014)
How to Attract and Convince Investors (2014)
 
How to build great products - TechSaturdays
How to build great products - TechSaturdaysHow to build great products - TechSaturdays
How to build great products - TechSaturdays
 
Defining Focus Areas of Growth
Defining Focus Areas of GrowthDefining Focus Areas of Growth
Defining Focus Areas of Growth
 
Zero to Hero
Zero to HeroZero to Hero
Zero to Hero
 
Converting ideas into businesses
Converting ideas into businessesConverting ideas into businesses
Converting ideas into businesses
 
Eric Ries's talk on "The Lean startup" at Google
Eric Ries's talk on "The Lean startup" at GoogleEric Ries's talk on "The Lean startup" at Google
Eric Ries's talk on "The Lean startup" at Google
 
Startup Business Series: Scaling Your B2B Sales
Startup Business Series: Scaling Your B2B SalesStartup Business Series: Scaling Your B2B Sales
Startup Business Series: Scaling Your B2B Sales
 
Presentation pivot practicum
Presentation   pivot practicumPresentation   pivot practicum
Presentation pivot practicum
 
BOOST YOUR BUSINESS: (1) opportunity knocks
BOOST YOUR BUSINESS: (1) opportunity knocksBOOST YOUR BUSINESS: (1) opportunity knocks
BOOST YOUR BUSINESS: (1) opportunity knocks
 
Danny Maher
Danny MaherDanny Maher
Danny Maher
 
Buying an existing business - Lecture 14
Buying an existing business - Lecture 14Buying an existing business - Lecture 14
Buying an existing business - Lecture 14
 
Creative marketing tactics
Creative marketing tacticsCreative marketing tactics
Creative marketing tactics
 
Oak fi-31.03.2016 - fundraising
Oak fi-31.03.2016 - fundraisingOak fi-31.03.2016 - fundraising
Oak fi-31.03.2016 - fundraising
 
Understand the Customer
Understand the CustomerUnderstand the Customer
Understand the Customer
 

Destacado

Fix - Marketing plan PASTI
Fix - Marketing plan PASTIFix - Marketing plan PASTI
Fix - Marketing plan PASTIRian Hariadi
 
Promosi & Kawalan - Sexual Transmitted Diseases
Promosi & Kawalan - Sexual Transmitted DiseasesPromosi & Kawalan - Sexual Transmitted Diseases
Promosi & Kawalan - Sexual Transmitted DiseasesMuhammad Nasrullah
 
Pemasaran 120814121348-phpapp01
Pemasaran 120814121348-phpapp01Pemasaran 120814121348-phpapp01
Pemasaran 120814121348-phpapp01Putra Meunafa
 
CallShaper Supervisor Manual
CallShaper Supervisor ManualCallShaper Supervisor Manual
CallShaper Supervisor ManualCallShaper, LLC
 
Laporan Digital Marketing - Mailchimp, Google Adwords & Facebook Ads
Laporan Digital Marketing - Mailchimp, Google Adwords & Facebook AdsLaporan Digital Marketing - Mailchimp, Google Adwords & Facebook Ads
Laporan Digital Marketing - Mailchimp, Google Adwords & Facebook AdsZulkifli Abdullah
 
Investment ready checklist
Investment ready checklistInvestment ready checklist
Investment ready checkliststartupJamaica
 
Merancang dan Mengelola Komunikasi Pemasaran Terintegrasi
Merancang dan Mengelola Komunikasi Pemasaran TerintegrasiMerancang dan Mengelola Komunikasi Pemasaran Terintegrasi
Merancang dan Mengelola Komunikasi Pemasaran TerintegrasiMarni Anita Sihite
 
Bab 17 merancang dan mengelola komunikasi pemasaran terintegrasi
Bab 17 merancang dan mengelola komunikasi pemasaran terintegrasiBab 17 merancang dan mengelola komunikasi pemasaran terintegrasi
Bab 17 merancang dan mengelola komunikasi pemasaran terintegrasiJudianto Nugroho
 

Destacado (9)

Fix - Marketing plan PASTI
Fix - Marketing plan PASTIFix - Marketing plan PASTI
Fix - Marketing plan PASTI
 
Promosi & Kawalan - Sexual Transmitted Diseases
Promosi & Kawalan - Sexual Transmitted DiseasesPromosi & Kawalan - Sexual Transmitted Diseases
Promosi & Kawalan - Sexual Transmitted Diseases
 
Cyber branding
Cyber brandingCyber branding
Cyber branding
 
Pemasaran 120814121348-phpapp01
Pemasaran 120814121348-phpapp01Pemasaran 120814121348-phpapp01
Pemasaran 120814121348-phpapp01
 
CallShaper Supervisor Manual
CallShaper Supervisor ManualCallShaper Supervisor Manual
CallShaper Supervisor Manual
 
Laporan Digital Marketing - Mailchimp, Google Adwords & Facebook Ads
Laporan Digital Marketing - Mailchimp, Google Adwords & Facebook AdsLaporan Digital Marketing - Mailchimp, Google Adwords & Facebook Ads
Laporan Digital Marketing - Mailchimp, Google Adwords & Facebook Ads
 
Investment ready checklist
Investment ready checklistInvestment ready checklist
Investment ready checklist
 
Merancang dan Mengelola Komunikasi Pemasaran Terintegrasi
Merancang dan Mengelola Komunikasi Pemasaran TerintegrasiMerancang dan Mengelola Komunikasi Pemasaran Terintegrasi
Merancang dan Mengelola Komunikasi Pemasaran Terintegrasi
 
Bab 17 merancang dan mengelola komunikasi pemasaran terintegrasi
Bab 17 merancang dan mengelola komunikasi pemasaran terintegrasiBab 17 merancang dan mengelola komunikasi pemasaran terintegrasi
Bab 17 merancang dan mengelola komunikasi pemasaran terintegrasi
 

Similar a Workshop #4

FITI CTPS Startup Workshop_Day 1
FITI CTPS Startup Workshop_Day 1FITI CTPS Startup Workshop_Day 1
FITI CTPS Startup Workshop_Day 1Albert Weng
 
Going From Idea to Operations - An Entrepreneur's­ Journey
Going From Idea to Operations - An Entrepreneur's­ JourneyGoing From Idea to Operations - An Entrepreneur's­ Journey
Going From Idea to Operations - An Entrepreneur's­ JourneyChristopher Mohritz
 
Erasmus Mission ToRun
Erasmus Mission ToRunErasmus Mission ToRun
Erasmus Mission ToRunBeata Young
 
Going From Idea to Operations - A Simple Framework for Building a Business
Going From Idea to Operations - A Simple Framework for Building a BusinessGoing From Idea to Operations - A Simple Framework for Building a Business
Going From Idea to Operations - A Simple Framework for Building a BusinessChristopher Mohritz
 
Is Your PPC Agency Wasting Your Budget?
Is Your PPC Agency Wasting Your Budget? Is Your PPC Agency Wasting Your Budget?
Is Your PPC Agency Wasting Your Budget? Search Engine Journal
 
Business summary template_2015
Business summary template_2015Business summary template_2015
Business summary template_2015a9653217 asd
 
Starting a business as engineers: algorithms aren't everything
Starting a business as engineers: algorithms aren't everythingStarting a business as engineers: algorithms aren't everything
Starting a business as engineers: algorithms aren't everythingAlja Isakovic
 
Advertise successfully on $50 week: Day 1
Advertise successfully on $50 week: Day 1Advertise successfully on $50 week: Day 1
Advertise successfully on $50 week: Day 1Accelerate Kitsap
 
Better Business Plans and Strategy
Better Business Plans and StrategyBetter Business Plans and Strategy
Better Business Plans and StrategyNunzio Bruno
 
The most fatal mistake to avoid as a startup
The most fatal mistake to avoid as a startupThe most fatal mistake to avoid as a startup
The most fatal mistake to avoid as a startupDavid Jackson
 
Find Your True ACoS & Optimize Your Sponsored Products Ads
Find Your True ACoS & Optimize Your Sponsored Products AdsFind Your True ACoS & Optimize Your Sponsored Products Ads
Find Your True ACoS & Optimize Your Sponsored Products AdsTinuiti
 
Bootstrapping vs Venture Capital.pptx
Bootstrapping vs Venture Capital.pptxBootstrapping vs Venture Capital.pptx
Bootstrapping vs Venture Capital.pptxZeljko Svedic
 
Entrepreneurship workshop, yerevan - team building
Entrepreneurship workshop, yerevan - team buildingEntrepreneurship workshop, yerevan - team building
Entrepreneurship workshop, yerevan - team buildingGrow VC Group
 
High Ticket Sales - How to Sell Large Client Retainers
High Ticket Sales - How to Sell Large Client RetainersHigh Ticket Sales - How to Sell Large Client Retainers
High Ticket Sales - How to Sell Large Client RetainersRyan Stewart
 
Investment Readiness for Startups
Investment Readiness for StartupsInvestment Readiness for Startups
Investment Readiness for Startups'Tomi Davies
 
The Best Start Up Pitch
The Best Start Up PitchThe Best Start Up Pitch
The Best Start Up PitchAlpesh Patel
 
pitchIT Caribbean - Pitch Deck Template
pitchIT Caribbean - Pitch Deck TemplatepitchIT Caribbean - Pitch Deck Template
pitchIT Caribbean - Pitch Deck TemplatepitchITCaribbean
 

Similar a Workshop #4 (20)

FITI CTPS Startup Workshop_Day 1
FITI CTPS Startup Workshop_Day 1FITI CTPS Startup Workshop_Day 1
FITI CTPS Startup Workshop_Day 1
 
Going From Idea to Operations - An Entrepreneur's­ Journey
Going From Idea to Operations - An Entrepreneur's­ JourneyGoing From Idea to Operations - An Entrepreneur's­ Journey
Going From Idea to Operations - An Entrepreneur's­ Journey
 
Erasmus Mission ToRun
Erasmus Mission ToRunErasmus Mission ToRun
Erasmus Mission ToRun
 
Workshop #3
Workshop #3 Workshop #3
Workshop #3
 
Going From Idea to Operations - A Simple Framework for Building a Business
Going From Idea to Operations - A Simple Framework for Building a BusinessGoing From Idea to Operations - A Simple Framework for Building a Business
Going From Idea to Operations - A Simple Framework for Building a Business
 
Is Your PPC Agency Wasting Your Budget?
Is Your PPC Agency Wasting Your Budget? Is Your PPC Agency Wasting Your Budget?
Is Your PPC Agency Wasting Your Budget?
 
Business summary template_2015
Business summary template_2015Business summary template_2015
Business summary template_2015
 
Starting a business as engineers: algorithms aren't everything
Starting a business as engineers: algorithms aren't everythingStarting a business as engineers: algorithms aren't everything
Starting a business as engineers: algorithms aren't everything
 
Advertise successfully on $50 week: Day 1
Advertise successfully on $50 week: Day 1Advertise successfully on $50 week: Day 1
Advertise successfully on $50 week: Day 1
 
Better Business Plans and Strategy
Better Business Plans and StrategyBetter Business Plans and Strategy
Better Business Plans and Strategy
 
The most fatal mistake to avoid as a startup
The most fatal mistake to avoid as a startupThe most fatal mistake to avoid as a startup
The most fatal mistake to avoid as a startup
 
Find Your True ACoS & Optimize Your Sponsored Products Ads
Find Your True ACoS & Optimize Your Sponsored Products AdsFind Your True ACoS & Optimize Your Sponsored Products Ads
Find Your True ACoS & Optimize Your Sponsored Products Ads
 
Monetize Your Cost Center: DevOps West 2020
Monetize Your Cost Center:  DevOps West 2020Monetize Your Cost Center:  DevOps West 2020
Monetize Your Cost Center: DevOps West 2020
 
Bootstrapping vs Venture Capital.pptx
Bootstrapping vs Venture Capital.pptxBootstrapping vs Venture Capital.pptx
Bootstrapping vs Venture Capital.pptx
 
Entrepreneurship workshop, yerevan - team building
Entrepreneurship workshop, yerevan - team buildingEntrepreneurship workshop, yerevan - team building
Entrepreneurship workshop, yerevan - team building
 
High Ticket Sales - How to Sell Large Client Retainers
High Ticket Sales - How to Sell Large Client RetainersHigh Ticket Sales - How to Sell Large Client Retainers
High Ticket Sales - How to Sell Large Client Retainers
 
Investment Readiness for Startups
Investment Readiness for StartupsInvestment Readiness for Startups
Investment Readiness for Startups
 
Business Plan for Training Centers
Business Plan   for Training CentersBusiness Plan   for Training Centers
Business Plan for Training Centers
 
The Best Start Up Pitch
The Best Start Up PitchThe Best Start Up Pitch
The Best Start Up Pitch
 
pitchIT Caribbean - Pitch Deck Template
pitchIT Caribbean - Pitch Deck TemplatepitchIT Caribbean - Pitch Deck Template
pitchIT Caribbean - Pitch Deck Template
 

Workshop #4

  • 1. Investment Readiness and Raising Funds For Your Venture. Startup BootCamp - Day 2
  • 2. Agenda 2:00 - 3:00 - Presentation 3:00 - 4:30 - Work on Pitch Deck
  • 5. What We'll Cover in This Workshop ● Defining how much funding you need. ● Investment Readiness Checklist (what you need to do before approaching investors). ● Sources of funding ● Techniques on how to develop a pitch deck.
  • 6. Economic Feasibility ● At what full cost can it be done? ● At what price would there be significant demand for it? ● Is there enough of a gap between this price and full costs to allow for profit?
  • 7. Economic Feasibility ● What will the business generate once it is up and running as a “going-concern?” ● How much financing will it take to get to that stage? ● What return on investment will that be?
  • 8. Projected Income Statement ● Sales Estimate ● Cost of Sales ● Operating Expenses ○ Fixed ○ Controllable ● Profit before interest and taxes
  • 9. Projected Sales ● Top down approach ○ What share of the market can we capture? ■ From which competitor(s) will this be taken? ● Bottom up approach ○ How much business from each entity in our target market do we need? ■ Reality check against present buying behaviour? ● Pricing will be a factor in both cases
  • 10. Operating Expenses ● Fixed expenses ○ Unavoidable, and essentially uncontrollable ■ Utilities, Taxes, Licenses, Facility costs ● Controllable expenses ○ Necessary, but timing and amount can be managed ○ Marketing expenses must support sales estimate ○ Must include fair provision for owners’ work!
  • 11. How Much Do You Need (Much) More than you think! Inadequate financing is the primary cause of new venture failures
  • 12. Investment Readiness Investors like to see: ● Managers with a stake in the business – Investors want to see key managers ‘in the loop’ and working towards capital growth, not just on a salary. ● Healthy balance sheets – Debt as part of working capital is fine, but investors are looking to invest to grow and develop your business, not pay off your debts. ● Realistic projections – Your cash flows and financial projections must be open, detailed and realistic, as they will be intensely scrutinised by investors.
  • 13. Investment Readiness An Excellent Team. A great management team can add to the good impression created by sound financials or a revolutionary product. ● Investors look for a well-knitted, adaptable and committed team that enjoys what they do.
  • 15. Fundraising Tips for Startups ● Put your startup on AngelList – (angel.co) ●Check out raising capital for startups and what to include in your pitch slides. This online course consists of 8 lectures and over 6.5 hours of content (including a sample pitch deck) . $19. ●PitchEnvy has over 20 recent pitch decks that raised money!
  • 16. Fundraising Tips for Startups Create an intro video as a teaser ● Helps establish the concept of your startup in a clear/clever/fun way for users and investors alike. ● PowToon, an Israeli startup, is another free tool to help. ●Equity Crowdfunding ● FundersClub (US),Seedrs (UK), and CrowdCube (UK, mostly non-tech) ● anyone (not just accredited angel investors), put small sums as little as $1000 towards an equity investment in a startup.
  • 17. Fundraising Tips for Startups Donation Crowdfunding ● Platforms like Kickstarter, Rally and IndieGogo are essentially early-sales platforms ● Works especially well for physical products.
  • 18. Fundraising Tips for Startups Join an Incubator/Accelerator Program ● Startup Chile accepts international applicants.
  • 19. Pitch Deck vs. Business Plan Feasibility Study ● Can it be done (realistically)? Business Plan ● I / we can do it successfully (and here’s how) Pitch Deck ● I / we will make it happen (if you invest)
  • 20. Pitch Decks: Keep It Simple!
  • 21. Keep it Simple 1. Have a great one-liner 2. Know your audience 3. Keep it to 10-15 slides 4. Beware of the demo 5. Expect the deck to be shared
  • 22. Keep it Simple 1. Find the Sweet Spot Get Specific! Focus on the problems you solve… “my clients are typically struggling to…and I help them…” 2. Speak Like a Human Being Yes, you should prepare and practice your pitch, but it should always be simple, natural, and in plain English. 3. Exude Confidence When answering what you do, don’t mumble through the response. Definitely never sound as if you’re apologizing.
  • 23. Keep It Simple 4. Ask Questions The best way to be remembered is to build a connection. For this reason, never consider the other person “your audience.” Ask them a few questions as well. 5. Practice, Practice, Practice While some people may look like natural networkers, in actuality, very few create a perfect pitch on the fly. And don’t worry about making mistakes.
  • 24. Components of a Pitch Deck 1. Elevator Pitch 2. The Problem 3. Your Solution 4. Market Size 5. Business Model 6. Proprietary Tech 7. Competition 8. Marketing Plan 9. Team / Hires 10. Money / Milestones
  • 25. 1. The Elevator Pitch ● Short, Simple, Memorable: “What, How, Why.” ○ “We’re X for Y” is ok if 1) it’s true 2) X & Y are well-known ● Max 3 key words / phrases, 2 sentences. ○ “SlideShare is the world’s largest community for sharing presentations. ○ “TeachStreet is a place to teach or learn anything.” ○ “Mint.com is the free, easy way to manage your money online.” ● Logo and/or Image ok but not rqd ● No “Inside Baseball” lingo ○ make it easy for non-experts to understand. ● Smile. It’s ok to have fun when you pitch ☺
  • 26. Zap Meals “ZapMeals is an online meal order & delivery service matching hungry consumers with great local food preparers.” “We’re eBay for takeout orders.”
  • 27. 2. The Problem What is The Problem? Make it Obvious. ● “Ouch. Yeah, I have that too…” Who has it? How Many? How do you know? ● stats, examples, research, links. “Painkiller not Vitamin” ● Vitamins are great, but you NEED painkillers. BAD.
  • 28. Zap Meals Problem: Great Fast Food… Isn’t Either. Preparers ● Is there a market for my cooking? ● Restaurants have high startup costs ● Delivery is tough to do fast, warm, & well Consumers ● Tough to find good fast food ● What’s the best / cheapest / fastest place to order from? ● It’s been 30 minutes – where’s my order?
  • 29. 3. Your Solution Describe why your Solution: ● Makes customers very happy ● Does it better, different than anyone else ● Remember “NICHE to WIN” (Customer Case Study can also go here)
  • 30. Demo of Product ● If you’re doing live demo: PRACTICE! PRACTICE! PRACTICE! ● Expect demo to FAIL – in multiple, interesting ways -- how will u handle it? ● Always have a backup (screenshots, local video) ● Expect to be interrupted
  • 31. Demo of the Product
  • 32. 4. The Market Bigger is Better Top Down = someone else reported it ● Forrester, Gartner, Your Uncle Bottom Up = calculate users/usage/rev$ ● Avg Txn = $X ● Y customers in our market ● Avg customer buys Z times per year ● Market Size = $X * Y * Z annually = a big friggin’ # ● Market growing @ 100+% per year
  • 33. 5. The Business Plan Describe Top 1-3 Revenue Sources ● Prioritize by Size, Growth, and/or Potential ● Cite current market activity / customer behavior as proof Show How You Get to Break-even (or Profitable) ● Ideally, on the current round of funding you’re raising Common Revenue Models ● Direct: ecommerce, subscription, digital goods, brands ● Indirect: advertising, lead gen, affiliate / CPA
  • 34. Zap Meals: 3 Ways to Make Money ● Transactional: ● charge a 15% food prep fee (min $1) ● charge a 15% food delivery fee (min $1) ● Advertising: ● charge small preparers by click-thru (SEM for food) ● charge larger preparers for premium / sponsored listings ● Supplies, Equipment, Insurance: ● provide supplies, education for ZapMeals preparers ● free licensing to ZapMeals preparers who buy $250 eqpmt ● insure against food inspection issues via large group
  • 35. 6. Proprietary Tech, Expertise VCs *really* like unfair advantage ● big market lead ● experienced team ● ex-Google PhDs ● core / “breakthrough” tech ● “defensible” IP / patents ● “exclusive” partnership ● great sales/market
  • 36. Zap Meals Proprietary Technology ZapMeals has developed a proprietary least-cost routing & matching algorithm for ordering & delivery Our Secret Sauce:”Search by Takeout Time” ● estimated food preparation time (historical) ● delivery distance (how far away ● delivery provider (on-time record) ● delivery stats real-time via GoogleMaps (+ GPS)
  • 37. 7. Competition ● List all top competitors ● (especially top ones; we’ll find them anyway) ● Say how you’re better, or at least different ● If not better or different -> “NICHE TO WIN” ● position(-ing) matters ● 2-axis graph is trite, but still useful ● see next page for example ● useful comparisons / differentiation: ● simple vs complex ● value vs cheap (tougher to prove tho) ● cheap vs expensive (but careful you don’t race to bottom) ● consumer vs enterprise ● open vs proprietary (in this case, open usually better… but not always)
  • 38. 8. Marketing Plan Ok, so your product / technology rocks, but… … how do you get customers / distribution? lots of channels, lots of decisions… choose a few: ● PR ● Contest ● Biz Dev ● Direct Marketing ● Radio / TV / Print ● Dedicated Sale ● Email ● SEO / SEM ● Blogs / Bloggers ● Viral / Referral ● Affiliate / CPA ● Apps
  • 39. Marketing Plan ● Online ● Partner with notable foodie bloggers ● Adwords Campaigns to regional west coast metros ● Generate SEO traffic via food listing pages ● Offline ● Distribution Partnership with CA Restaurant Assoc. (700 in SF) ● Contest for Best Ethnic Restaurants (10 x 10 winners, prizes) ● PR stunt / TV spot for “Fastest Food Delivery in San Francisco”
  • 40. 9. The Team Key People ● Geeks with deep technical background ● Entrepreneurs who have sold companies ● Sales/Marketing who Make it Rain Also Identify: ● Key Hires you Need but *Don’t* Have, and… ● … you’ve got candidates lined up in those areas ● ... ready to hire as soon as you close funding ● … or at least job descriptions / est. salary
  • 41. 10. Money, Milestones ● How Much Money Raised / Now Raising? ● Show 3 Budgets: Small, Medium, Large ● Show how you’ve got “Small” already lined up ● Show “Optionality”, Competitive Interest (if poss.) ● What Will you Do with the Capital? ● Key Hires (Build Product) ● Marketing & Sales (Drive Revenue) ● CapX, Ops Infrastructure (Scale Up) ● Map Out Achievable Milestones with Non-Linear Increase in Value ● Show what will get you to next milestone (product, customers, hires) ● Show how the capital you have is more than adequate ● Show substantial UPTICK in value when milestone is achieved ● functional product ● initial customers / revenue ● break-even or profitable
  • 42. Financials Raised $200K Seed round Jan 08 @ $1M valuation ● angel investors: Ron Conway, Larry Page, Bill Gates ● built initial prototype; functional use with 1000 customers Seeking $500K-$1M Series A round @ $2.5M valuation ● already closed $300K ● meetings with 5 other VCs in next 2 weeks ● targeted closing in 4 weeks Use of Proceeds / Product Roadmap / Goals ● $300-500K: hire 2-3 engineers, 1 marketing / sales, .5 PT customer support ● $200-500K: marketing campaigns & customer acquisition ● get to 25K customers, $1M revenue by end of year ● estimated break-even in Q4 / 09 @ $100K / month
  • 43. One Last Thing Close with a Bang Leave ‘em Wanting More Show Interest in next date Leave them a Memento ● educate them on market report ● send link to private beta “oh, and One More Thing...”
  • 44. More Info ● Dave McClure: ○ Startup Metrics for Pirates (AARRR!) ○ ZapMeals Sample Pitch Presentation ○ Master of 500 Hats Blog: “Greatest Hats” (top blog posts) ● Steve Blank: 4 Steps to Epiphany, Customer Development Methodology ● Eric Ries: StartupLessonsLearned ● Sean Ellis: Startup-Marketing.com ● Andrew Chen: AndrewChenBlog.com ● Brad Feld, Jason Mendelson: AskTheVC.com ● VentureHacks.com ● StartupCompanyLawyer.com