This document outlines the structure and key points for an effective VC pitch presentation for a fictitious mobile applications startup. The presentation should include slides on the business mission, market opportunity and size, customer problem, unique solution, team experience, defensible technology, current customers, customer lifetime value, go-to-market strategy, development milestones and funding needs, financial projections, competitive landscape, prior financing, and why the target venture firm is the right investor. The VC will be evaluating factors like market size, solution uniqueness, team strength, product viability, monetization strategy, credibility of financials and plans for future funding.

1. VC PITCHES THAT WORK Todd Klein Legend Ventures, LLC 9/15/10

2. STRUCTURE OF THIS PRESENTATION Most important slides, what goes on them Examples of “Right” answers E.g., for this presentation: Fictitious Mobile Applications startup What is the VC thinking? 2

3. MISSION OF THE BUSINESS What’s on the slide: Succinct one-liner that encapsulates the business idea Example: We are the Amazon of Mobile Applications What the VC is thinking: “Why do I care?” 3

4. MARKET PROFILE How big is the market and how fast is it growing? 150 M smart phones in US, 300 M in ROW Average $2.50/month spent on mobile apps “Is there a billion dollar company in here?” 4

5. PROBLEM/OPPORTUNITY How big is the customer’s problem Smart phones are becoming indispensible, need trusted source of applications “Is the pain so bad that solving it will generate high gross margins and fast adoption?” 5

6. YOUR SOLUTION What is unique about your solution Comprehensive source, optimized price, for every smart phone “Who’s tried this before (if anyone) and why hasn’t it been addressed successfully until you showed up?” 6

7. TEAM SLIDE Names & Experience (include gaps you’re trying to fill) Built a service that achieved $15 million in revenues in two years before being sold to Microsoft “Would I stake my entire professional reputation on these people? 7

8. TECHNOLOGY What is the Secret Sauce? Is it defensible? Headstart over others? Patented search and fulfillment engine “Is it ready, will it take 1 year or 5 more years to be ready for prime time?” 8

9. CUSTOMERS Who is paying for or testing the product? We have 100,000 users “If it weren’t free, would people pay for it? And if it is free, what freemium opportunities are there?” 9

10. VALUE PER CUSTOMER Key slide Gross profit per customer Costs to acquire customers Fully loaded costs to service customers Customer churn Minimum customers to breakeven “What is the lifetime value of a customer?” 10

11. GO TO MARKET STRATEGY Getting in front of customers We use SEO to reach customers “What are the key channels that influence customer awareness and buying behavior?” 11

12. KEY MILESTONES (S/U OF FUNDS) Development milestones, when will the product be ready This round will get us to 3 million users “How far will this financing take me? Will there be a chance for an early exit or a step up on the next round?” 12

13. FINANCIALS I/S, B/S, C/F statements Numbers are still attractive if we’re off by 2X or more “Are these credible, has the team thought through its model?” 13

14. COMPETITION 2 X 2 matrix structure: most important competitive variables on the axes (Blue Ocean Strategy) Our unfair advantage is… “Does this team know really know its market?” 14

15. FINANCING TO DATE Capital invested so far, amount of this raise We’ve been capital efficient up until now and will remain that way “Is this a club I want to join? Are these potential partners I respect?” 15

16. WHY XYZ VENTURE FIRM Why do you want to work with this investor? We need expertise in X area and help with Y relationships “They like me, they really like me!” 16