Espire

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Espire Final Presentation

• ESPIRE Group ID

2
Characteristics of a good plan

• Authoring Validation
• Written by management team (support of experts)
• Validated run through with knowledgeable
  advisors
• References to quality research (primary
  secondary)
• Structural
• Crisp (16-20 slides)
• Logically sequenced and de-jargonized

3
Characteristics of a good plan (contd..)

• Approach
• Relevance to audience (pointedly address key
  concerns avoid analysis paralysis syndrome)
• Simple business orientation (not too techie)
• Realistic projections promise the moon only if
  you can deliver it
• Financial prudence high sensitivity towards cash
  burn
• Maturity self-awareness (competition, returns,
  risk gaps assessment)
• Fair valuation expectation
• Content
• Deliver a 360 degree perspective dont tell only
  part of relevant story
• Fact-based avoid fluffy adjectives
• Industry insights Vs industry information (domain
  expertise)
• Demonstration of excellent ability to execute per
  operating plan
• Exit opportunities if audience is investor
  understand VC perspective on fund level returns

4
Structure

• Elevator Pitch
• Vision and Mission Statement
• Market and Industry Environment
• Value Proposition, Key Products/Services and
  Differentiation
• Competitive Scenario and Entry Barriers
• Business Model and Sales/Marketing Strategy
• Market Traction
• Management Team
• Organization
• Financials
• Exit
• Capital
• Risks and Gaps

5
Elevator Pitch

• What does the Company do?
• What new benefits do you provide and/or what pain
  points are addressed?
• How are you differentiated from competitors on a
  sustainable basis?

6
Vision and Mission Statement

• Powerful and realistic enough to rally all
  stakeholders
• Should reveal core focus area of the company
• Avoid verbose and very generic statements
• No jargon
• True well thought through guiding principle for
  the company
• Investors back current and potential market
  leaders

7
Market and Industry Environment

• Details about target segment and industry such as
• Market definition
• Key segments (size and growth rates)
• Market trends (challenges opportunities)
• Critical success factors
• Visual illustration of eco-system
• Competition
• Vendors
• Distributors
• Customers

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Value Proposition, Key Products/Services and
Differentiation

• Convince the audience that very large number of
  customers will pay good amount of money for your
  offering on a regular basis
• List of key products and services being offered
  future roadmap one-trick ponies can be a
  challenge
• Target customer profile try to please all and
  you may please none
• Importantly do not kid yourself about
  differentiation competition is global

9
Competitive Scenario and Entry Barriers

• No competition is almost never a reality
  acknowledge potential competition if no
  head-to-head player exists
• Existence of some competition can serve for
  crucial market validation
• Audience is sure to do its own competitive
  analysis you might as well assist the process
  with matrix of
• Competitor name
• Business line
• Geography
• Relative key strengths and weakness of each
• Entry barriers for the new entrants are critical

10
Business Model and Sales/Marketing Strategy

• Revenue drivers
• Cost drivers
• Sales/marketing strategy including
• Overall product/brand positioning
• Sales distribution strategy
• Key business development alliances partnerships
  
• Pricing approach

11
Market Traction

• A key clincher slide
• Provide information on customer wins and
  historical traction with key accounts
• Include applicable metrics such as
• Key accounts
• Repeat business
• Customers won over from competition
• Number of unique users
• Distribution partners
• Average revenue per account/user

12
Management Team

• A very crucial clincher slide- good teams rarer
  than good plans
• Provide information about management team
  including factors such as
• Ex-employer/venture names
• Past role descriptions and timelines
• Key strengths
• Achievements
• Roles high level responsibilities in this
  Company
• Audience will look for indication of
• Integrity
• Domain expertise
• Proven chemistry amongst core team
• Established credibility in industry especially in
  case of large cos
• Perseverance especially in case of start-ups

13
Organization

• Ability to attract good talent across
  organization is also credible validation of
  company prospects
• High level on BoD and BoA if applicable
• Give a sense for the structure and size of the
  company ex.
• Business division break-up and approach used
• Human resource structure
• No of employees in various functions/departments
• Locations

14
Financials

• Audited annual high level Profit and Loss Cash
  Flow statement for the last three years (if
  applicable)
• High level Profit Loss Cash Flow projections
  for the following three years
• List key underlying assumptions for the top
  bottom line projections
• Breakdown the revenue per lines of business
• Important hygiene factor mention maintain
  consistency in currency denomination

15
Exit

• Investors have definite intention of exit
• Understand perspective on fund level return
  expectation
• Think through and share specific exit scenarios
  ex.
• Time frame and revenue scale for IPO or
• Potential acquirers and specific reasons for
  their potential interest
• Research provide information on relevant
  recent exit/valuation events in the market

16
Capital

• If raising money specify how much timelines for
  same
• Provide breakdown of capital allocation
• Calculate by when you will burn money being
  raised (if applicable)
• If further rounds of funding are required then
  specify the plan
• Raising too much is as dangerous as raising too
  little
• Specify current capital shareholding structure
• Share history of earlier funding (if any)
• Dates of such transactions
• Amounts raised
• Pre-money valuations
• Equity stake allotted

17
Risks and Gaps

• Excellent opportunity to demonstrate maturity of
  management team
• Mention specific risks that your venture and
  market/industry face
• What are the likely reasons that would cause your
  Company to under-achieve its targets?
• What steps are being taken to mitigate these
  risks?
• Current gaps can pan for ex.
• Strategy
• Business model
• Customer traction
• Talent
• Technology
• Operations
• What are the priorities consequent plan around
  filling in these gaps?

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• Thank-you