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- 1. Adam Lorant adam@lorant.com The Art of The Pitch
- 2. My Background 1998-2000 2001-2004
- 3. Agenda 1. Know Your Audience 2. Build Substance The 5 Ts 3.
Package Style The Pitch Pyramid 3 Source: Pennstatelive
- 4. CleanTech 3% Digital Media 17% Life Sciences 8% Other 29% So
ware 37% Wireless 6% Know Your Audience 4 PLEASE. Before you
prepare a pitch or a presentation or a web site. 1. Understand who
youre talking to; 2. What questions theywant answered; 3. What
youwant to get out of the meeting.
- 5. Tune your pitch for your audience Co-founders Employees
Professionals Partners Customers Investors Media Your mother 5
Source:KaffeeTrauma
- 6. 6 Remove Risk
- 7. 7 Tell a Great Story
- 8. Remove Risk Team Risk Market Risk Business Risk Technical
Risk Financial Risk 8 Risk Valuation Investors Dont Like Risk !
Your job is to maximize valuation. Demonstrate to investors youre
low(ish) risk.
- 9. People buy in to a Great Story. 9
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- 10. Telling a Great Story: Substance, Style. 10
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- 11. Substance
- 12. Creating Substance: The 5Ts Tr o u b l e Te c h n o l o g y
Te a m Tr a c t i o n Tr e a s u r e 12
- 13. Tr o u b l e Te c h n o l o g y Te a m Tr a c t i o n Tr e
a s u r e What problem are you solving for your customer? How big
of a pain is it for them? Whats the cost to switch from their
current solution? Risk vs. WOW Trouble 13 Trouble Pain Change
Cost/Benefit
- 14. Creating Substance: The 5 Ts Tr o u b l e Te c h n o l o g
y Te a m Tr a c t i o n Tr e a s u r e 14 Whats your secret sauce?
Why do I care? Whats new, original and different about your
product? First/Best/Only How easy is it for a competitor to
replicate? Know-how or Patents Risk vs. WOW Technology Unique
Valuable Protected
- 15. Creating Substance: The 5 Ts Tr o u b l e Te c h n o l o g
y Te a m Tr a c t i o n Tr e a s u r e 15 Risk vs. WOW What domain
expertise does the management team have? Where are the experience
and expertise gaps? Who are the advisors & board of directors?
Team Experience Credibility Coverage
- 16. Creating Substance: The 5 Ts Tr o u b l e Te c h n o l o g
y Te a m Tr a c t i o n Tr e a s u r e 16 Risk vs. WOW How well do
you understand your customer? How many customers do you have and
whats your growth rate? What do customers say about you/your
product? What is your customer acquisition strategy and cost to
acquire customers? Whats the customers cost/benefit? Traction
Stories Proof Metrics
- 17. Creating Substance: The 5 Ts Tr o u b l e Te c h n o l o g
y Te a m Tr a c t i o n Tr e a s u r e 17 Risk vs. WOW How big is
the market? How much money do you need to raise? How fast are you
going to get to revenue & profitability? Whats your pricing
strategy like? Treasure Investment Milestones Timing
- 18. 18
- 19. Style
- 20. Putting it all together: A Great Story 20 3 - 5
wordsConcept 100 secondsStand-up 100 wordsGet a Meeting 10 slide
deckInvestor
- 21. The Concept Pitch Say it in 3-5 words 3 - 5 wordsConcept
100 secondsStand-up 100 wordsGet a Meeting 10 slide
deckInvestor
- 22. The Concept Pitch NOT your Tagline 22
- 23. The Concept Pitch NOT your Vision or Mission Statement
23
- 24. The Concept Pitch 24
- 25. The Stand Up Pitch Your elevator pitch. Cocktail party
conversation. The 100 second story. 3 - 5 wordsConcept 100
secondsStand-up 100 wordsGet a Meeting 10 slide deckInvestor
- 26. What you need to cover: Tr o u b l e 26 a a Te c h n o l o
g y Te a m Tr a c t i o n Tr e a s u r e a a a
- 27. Sample Stand Up Pitch PetPlay is introducing a line of
gourmet canned cat foods with the brand name Petite Cuisine. These
products look good, smell great, and taste great because they are
people food for cats! You may not want to, but you could eat it!
Research shows consumers love the products for their refreshing
look and pleasant smelland cats devour them. Petite Cuisine is 100%
nutritionally complete for cats and is made from products you would
buy at the meat and fish counter. The line currently has eight
items including whole tuna, red snapper filets, baby shrimp, and
rock crab. I launched and ran Fancy Feast, the largest competitor
in this space nationally and ran one of Nestle's international pet
food divisions. I know this market well. Orders are in from Ralph's
grocery chain with additional distribution commitments totalling
500 stores. Capital is being raised in two stages$500,000 in
initial launch capital for 500 stores and then a round of expansion
capital of $3 to $5 million for 3,000+ stores. Tech Coast Angels,
2007 27
- 28. Breaking down the Pitch PetPlay is introducing a line of
gourmet canned cat foods with the brand name Petite Cuisine. These
products look good, smell great, and taste great because they are
people food for cats! You may not want to, but you could eat it!
Research shows consumers love the products for their refreshing
look and pleasant smelland cats devour them. Petite Cuisine is 100%
nutritionally complete for cats and is made from products you would
buy at the meat and fish counter. The line currently has eight
items including whole tuna, red snapper filets, baby shrimp, and
rock crab. 28 Catchy concept pitch Problem youre solving
Understands industry and consumers Differentiated productT T
- 29. I launched and ran Fancy Feast, the largest competitor in
this space nationally and ran one of Nestle's international pet
food divisions. I know this market well. Orders are in from Ralphs
grocery chain with additional distribution commitments totalling
500 stores. Capital is being raised in two stages$500,000 in
initial launch capital for 500 stores and then a round of expansion
capital of $3 to $5 million for 3,000+ stores Breaking down the
Pitch 29 BIG experience Good traction Understands what it will
takeT T T
- 30. The Investor Pitch 3 - 5 wordsConcept 100 secondsStand-up
100 wordsGet a Meeting 10 slide deckInvestor
- 31. 31
- 32. The Investor Pitch NOT a product pitch NOT a business plan
in PowerPoint NOT about explaining It's about SELLING 32 An
illustrated story about the opportunity.
- 33. Guy Kawasaki's 10/20/30 Rule 33 10 20 30Slides Minutes
Point Font Lots of graphics.
- 34. Clean,Simple,Visual,Powerful,Memorable 34
- 35. Contents of an Investor Pitch 1. Problem 2. Your solution
3. Underlying magic/technology 4. Traction and customer acquisition
5. Competition 6. Team 7. Status and timeline 8. Business model 9.
Projections and milestones 10. Summary and call to action 35
- 36. Youve Got To Capture imagination Show passion Show
experience Show credibility Show simplicity Show validation Show
ambition 36
- 37. Paint a Picture 37
- 38. Customer Engagement Metrics, Metrics, Metrics MRR, Churn,
LTV, CAC, Revenues Downloads, Activations, Usage Customers Pilots,
stories, references, names Lead Innovators Program 38
- 39. Boring Finance Slide Year 1 Year 2 Year 3 Revenues 100 200
300 CoGS 10 20 30 Margin 90 180 270 Sales & Marketing 50 100
120 R&D 75 100 100 FG&A 20 30 40 Income (55) (50) 10
39
- 40. Investment Return Graph 40 Revenue Profit $5M investment
Break Even Q11 2,000 Customers $1,000 per customer Rel 1 Revenue Q5
$3.5 M spend Beta Q4 $2.5M spend Alpha Q3 $2M spend Q1 Q2 Q3 Q4 Q5
Q6 Q8 Q10 Q12Q7 Q9 Q11 1,000,000 2,000,000 3,000,000 4,000,000
-1,000,000 -2,000,000
- 41. So Many Great Examples So Little Time In the spirit of
making it real: http://www.pitchenvy.com/
http://www.ted.com/talks/david_s_rose_on_pitching_to_vcs 41
- 42. The Art of the Pitch 42 Concept Stand-up Get a Meeting
Investor STYLE AUDIENCE SUBSTANCE Technology Traction Team Treasure
Who They You $$$ Trouble
- 43. Storytelling is an ongoing process of continuous
improvement Apply TestCritique 43
- 44. 44
- 45. And they lived happily ever after 45
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