1. Business Models&Pitching Investors Mark Neely mpn@infolution.com.au

2. Agenda Part I- Business Models Business Models 101 Explaining your Business Model Groundtruthing your Business Model Part II – Pitching To Investors It’s a Numbers Game Pitching 101 Proposed Presentation Format Risk v. Reward

3. Business Models 101 Part I:Business Models

4. Business Models 101

5. Business Models 101

6. Business Models 101 Market Segment Identify the specific group of customers (aka ‘market segment’) you will target. Demonstrate an understanding that different market segments have different needs, preferences and purchasing criteria. Explain why you have chosen the specific market segment. Quantify, Quantify, Quantify. Important to be able to point to a present demand from an identifiable and targetable market segment.

7. Business Models 101 Value Chain Where does your business sit in the value chain? Do you need telco support/partnership? Can you go direct-to-customer? Do you require the availability of other technologies (e.g. Bluetooth)? If you are reliant on others, how will you capture your part of the value created? If you require other technologies, how do you overcome consumer inertia?

8. Business Models 101

9. Business Models 101

10. Business Models 101

11. Explaining Your Business Model Business Model = Your Business In a Nutshell If you cannot explain it in 50 words or less, you don’t yet fully understand your business. Summarise, summarise, and summarise again. Throw away verbiage, get to the essence (e.g. “We cure cancer”). Concise, powerful summary needed: Elevator pitch Investor pitch Customer pitch Friends & Family (“What is it that you do?”)

12. Groundtruthing Your Business Model

13. Business Models 101 Part II:Pitching to Investors

14. It’s a Numbers Game Law of Supply v. Demand works against entrepreneurs/innovators: 1000s of ideas (Supply) v. Dozens of investors (Demand) Investors are very choosy: Specific niches / areas of interest (e.g. Health) Specific investment criteria + thresholds Specific stages of investment Specific regions for investment Do your research + target compatible sources of investment.

15. It’s a Numbers Game

16. It’s a Numbers Game

17. Pitching 101

18. Pitching 101

19. Pitching 101

20. Pitching 101

21. Pitching 101

22. Pitching 101

23. Pitching 101 Rule 7 – Remember the ‘end game’ and only tell enough of the full story. You cannot assume they have read your business plan (99% won’t have). But you don’t have time to tell them everything. No one is going to write you a cheque after a single pitch. So you need to tell them enough to get them interested and secure a follow-up meeting. Objective of a pitch is to stimulate interest, not close the deal. It is the start of a l-o-n-g process.

24. Pitching 101

25. Pitching 101

26. Pitching 101

27. Proposed Presentation Format

28. Risk v. Reward

29. Risk v. Reward Remember your audience – THE INVESTOR. Investors always want to see: What they get for their $. A billion dollar market. 10X return within 3-5 years. Investors have a portfolio approach: Of 10 investments, 7 will fail (money lost), 2 will break even (nil return), 1 will be breakaway hit (10X return). They pick every investment for its potential to be breakaway hit.

30. Recommended Reading

31. Business Models & Pitching Q&A