How to Make a VC Pitch

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How to Make a VC Pitch

• Stephen Pearse
• spearse_at_gmail.com
• CommonAngels

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This Presentation

• Me CEO, Entrepreneur, Investor
• Telecom, IT, Health Science
• You
• Launching your idea
• Ask me questions
• Team, Founders, Exit, Valuation
• Public vs. Sell
• MA
• Stock strategy

3
Getting an Audience

• VC Noise
• Get Introduced
• Memorize Elevator Pitch
• For lttarget customersgt who are dissatisfied with
  ltcurrent alternativegt,ltour productgt is a ltnew
  product categorygt that provides ltkey problem
  solving opportunitygt. Unlike a ltcompetitive
  substitutegt, we have assembled ltkey whole product
  featuresgt.
• One Shot
• Induce Greed

Geoffrey Moore, Crossing the Chasm
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The Pitch KISS

• Really Simple!
• Hook
• Target Audience
• Lowest Common Denominator
• Keep It Short (10/20/30)
• Pictures!
• Answer detail/curveballs quickly
• Passion! Engage! Confidence!

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Basic Anatomy

• Hook
• Solution
• Market
• Sales Strategy
• Revenue Model
• Competition
• Management
• Financials
• The Offer

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The Hook

• Pain or Huge Market Opportunity
• 7 Seconds
• Imagine a safe rubber coating that conducts
  eletricity
• Have you ever felt threatened?
• Our box is 10x smaller, faster, cheaper than
• Do you get poor cell phone reception at home?

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NO Geek Speak

• WRONG
• Our technology is the first integrated and
  automatic book scanner that will scan and
  digitize bound documents at a speed of 1,200 PPM
  at a fraction of the cost of existing solutions
  based on a disruptive digital imaging technology
  initially developed at Bell Labs and protected by
  12 patents.
• RIGHT
• We will lead the market of sharing massive
  knowledge by digitizing physical libraries at a
  very low cost.

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Focus of Pitch

• Customer Benefits NOT Tech Benefits
• Tech Benefits- SO WHAT?
• Improved Network Utilization
• Scalable, Adaptable
• Secure integration
• Seamless Integration
• Business Benefits- Pain Reduction!
• Increase Revenues by 60
• 34 cost reduction in 12 months

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Style

• Use best presenter
• Have egghead in room
• Give firm answers
• Look at everyone in room
• Do your homework
• Pull Questions

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Pitch Examples

• Good and Bad

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VC Strategy

• Get money when you dont need it
• Launch gt 4 pitches simultaneously
• Assume gt 6 months
• Be introduced when possible
• Name brand usually trumps

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Potential Questions Posed by Audience

• Company Background
• Who is the talent
• What stage/when
• Funding/backers
• Value Proposition
• What are you building?
• Why change?
• Risks?
• What can you do for me?
• What is target customer profile?
  focus/strategy/fit
• Competitive Advantage
• How much better (quantify)
• Whats different?
• Why you?

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Specific Investor Questions

• IP
• Mission
• Is team assembled?
• Where do you fit- physically, on food chain
• Customer requirements/commitment
• When will you make it
• How much will it cost to build it/company
• How much money will you make us?

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Bottom Line

• Passion
• Confidence
• Engagement
• CALL TO ACTION
• (Rinse and Repeat)

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GOOD LUCK!