ì  POEM®  302  

TechnoVision  

Pitching  POEM  to  Angel  Investors  

TOMI  DAVIES  

Content  

1.  WHY  YOU?  

2.  PROPOSITION  •  The  Business  Idea  •  The  Market  •  The  Problem/Opportunity  •  The  SoluEon  •  The  Customers  •  The  CompeEEon  

3.  ORGANISATION  •  StartUp  Team  •  GeJng  to  Market  

4.  ECONOMICS  •  Customer  Economics  •  Financials  

5.  MILESTONES  •   History  •  Current  Status  •  Key  Milestones  

Why  are  you  pitching?  

ì  Share  your  vision  and  show  your  passion  for  the  business.    

ì  Demonstrate  your  understanding  the  need  for  mentoring,  access  to  business  networks  &  funding  and  be  realisCc  about  how  it  can  help  your  startup  succeed.      

ì  Illustrate  what  the  investors  ability  to  add  value  in  ways  other  than  providing  capital,  such  as  challenging  your  thinking,  enhancing  your  credibility  and  helping  you  make  contacts  in  your  market  will  mean  to  your  startup.    

What’s  your  POEM?  

PROPOSITION  The  Business  Idea  The  Market  The  Problem/Opportunity  The  SoluCon  The  Customers  The  CompeCCon  

ORGANISATION  Your  Team  GeLng  to  Market    

ECONOMICS  Customer  Economics  Financials  

MILESTONES  Your  History  Current  Status  Key  Milestones    

P:  The  Business  Idea  

þ  Express  your  idea  in  one  sentence.    

þ  Be  concise  and  convincing.    

þ  Is  it  a  big  enough  idea  that  has  the  potenCal  to  earn  outsized  returns  and  generate  real  wealth  for  investors?  

Why  should  I  be  excited  about  this  

startup?  

P:  The  Market  

þ  Describe  the  opportunity  you  have  to  create  revenues.    

þ  What  are  the  margins?    

þ  What’s  your  total  available  market/return?  

þ  What  would  your  revenue  be  if  you  got  100  percent  of  your  target  customers  paying  what  you  expect?  

Is  this  market/opportunity  big  enough  to  yield  

sustained  growth  and  market  share  

leadership  for  a  highly  valued  investment?    

P:  The  Problem/Opportunity  

þ  Describe  the  problem  you  are  solving.    

þ  Show  that  you  know  the  problem  and  the  opportunity!    

þ  Who  is  the  target  customer?  þ  does  he/she  have  buying  ability  

and  authority?    þ  what  problem  does  the  

customer  have  today?  þ  why  is  that  a  big  problem,  why  

is  it  his/her  biggest  problem?    

Are  there  a  significant  enough  number  of  “good”  

customers  who  care  enough  about  this  problem  to  pay  for  a  

soluCon?    

P:  The  Solution  

þ  Define  and  arCculate  the  soluCon.      

þ  Show  that  you  have  really  come  up  with  a  soluCon  that  is  truly  innova&ve  and  value  crea&ng.  

þ  Did  you  find  it  due  to  exclusive  domain  experCse  or  intellectual  property  that  is  really  hard  for  others  to  match?  

Will  the  soluCon  give  the  startup  a  compeCCve  

advantage?    

P:  The  Customers  

þ  Share  profiles  of  those  who  have  agreed  to  pay  for  the  product/service.    

þ  If  the  product/service  is  sCll  in  “beta  test,”  present  specific  customers  who  have  provided  credible  evidence  that  they  are  ready  to  buy  the  product/service  and  will  work  with  the  company  to  help  improve  it  over  Cme.  

þ  Who  are  the  customers  that  are  really  waiCng  to  pay  for  this  service?  

Are  there  customers  that  ma\er  with  a  high  willingness  to  pay?  

P:  The  Competition  

þ  Share  specific  strengths  and  advantages  of  your  top  two  or  three  compeCtors,    

þ  Create  a  matrix  of  the  compeCCon  with  the  variables  that  ma\er  and  present  a  one/two-­‐liner  on  each  of  their  stories  (funding,  etc.)    

þ  In  one/two  sentences  why  can  you  beat  each  of  them?  

How  is  the  startup  posiConed  in  the  

landscape  against  all  the  other  valued  companies  playing  in  this  category?    

O:  Your    Team  

þ  Present  profiles  of  the  top  team  members.  (Directors,  Advisors  &  Management)  

þ  Include  quick  bullet  points  about  their  relevant  past.  

þ  Why  are  they  the  team  to  beat  in  the  industry  sector?  

Is  there  a  world-­‐class  team  in  place  with  relevant  skills  and  a  solid  track  record  to  

pull  this  off?    

O:  Getting  to  Market  

þ  Explain  how  will  you  get  in  front  of  the  customer  (direct,  indirect,  etc.)  so  that  your  product  or  service  will  sell  quickly,  easily  and  with  a  short  sales  cycle.  

þ  Address  the  issue  of  accessing  the  customer.  

þ  Which  channels  will  you  use  to  get  to  the  market  and  how?  

What  are  the  ways  and  channels    this  startup  will  get  its  product  to  customers  profitably?  

E:  Customer  Economics  

þ  Show  that  you  know  what  customers  pay,  what  it  costs  to  service  them,  and  what  it  costs  to  acquire  them.    

þ  What  are  customer-­‐retenCon  rates  that  will  result  in  compelling  unit  economics?  

þ  What  is  the  rate  of  return  on  new  customers?    

þ  Can  your  startup  reach  a  broad,  diverse  customer  base  across  industries/geographies  inexpensively,  and  get  big  revenue  out  of  them?  

Do  people  who  are  the  ulCmate  decision  

makers  care  enough  for  the  product  or  

service  (i.e.  they    are  paying)?  

E:  Customer  Economics  

þ  Present  a  chart  outlining  financial  projecCons.    

þ  On  the  horizontal  axis:  last  year,  last  two  and  next  two  quarters,  next  year,  two  years  out,  and  three  to  five  years  out.    

þ  On  the  verCcal  axis:  key  metrics  such  as  number  of  customers,  big  revenue  lines,  COGS,  gross  margin,  big  expense  lines,  net  income,  cash  flow,  and  EBITDA  

þ  How  much  will  you  make  for  each  dollar  invested?  Over  what  period?  

Are  the  unit  economics,  gross  margins  and  

profitability  believable  and  compeCCve?    

M:  Your  History  

þ  Describe  your  history  of  achievements.    

þ  Detail  what  investments  have  already  been  made  including  yours    

þ  How  far  did  each  investment  go  and  what  did  you  do  with  it?  

How  much  has  been  invested  and  what  difference  has  

investment  in  this  team  made?    

M:  Your  Current  Status  

þ  Present  a  factual  current  status.    

þ  Detail  how  all  the  risk  idenCfied  through  research  has  been  managed  and  any  major  unsolved  technical  problems  that  may  remain.  

þ  Where  are  you  today  financially?  People?  Product/Services?  

Are  the  company’s  products/services  

already  marketable  or  Is  there  sCll  a  lot  of  research  and  

development  remaining  to  be  done?  

M:  Key  Milestones  

þ  Share  tangible  major  milestones,  which  can  be  hit  quickly  to  prove  the  value  proposiCon  and  indicate  that  the  team  can  address  its  market,  allowing  a  big  step-­‐up  in  value  for  it  as  a  company.  

þ  Show  you  know  when  to  expect  the  next  round  of  funding.  

þ  How  will  the  growth  of  your  company  be  sustained?  

How  much  progress  will  the  company  be  able  to  make  with  the  

funding  they  are  seeking?  

TOMI  DAVIES  ceo@tvcng.com  

+234  817  001  2938  

THANK  YOU!