View
223
Download
0
Category
Preview:
DESCRIPTION
ELEMENTS OF A PITCH 1.Problem 2.Your solution 3.Business model – where it’s sold 4.Underlying tech – why it’s unique 5.Marketing and sales – how much 6.Competition 7.Team 8.Projections and milestones 9.Status and timeline 10.Summary and call to action
Citation preview
HOW TO PITCH TO A SHARK
WHAT MAKES A SUCCESSFUL PITCH?
ELEMENTS OF A PITCH1. Problem2. Your solution3. Business model – where it’s sold4. Underlying tech – why it’s unique5. Marketing and sales – how much6. Competition7. Team8. Projections and milestones9. Status and timeline10. Summary and call to action
BE READY TO ANSWER QUESTIONS
Product
Why is it unique?
What problem does it solve?
What are the risks?
NOTES ON THE NUMBERS
• Owners pitch many times – even if they’re successful!
• Rounds of funding match growth– Seed– Angel– Venture Series A, B, C, etc.
• “In” means move to due diligence
20%
20%
20%
20%
20%
…determines the value of the owner’s stake.
Shark's Equity StakeOwner's StakeOwner's Stake
20%
80%
The value of the shark’s stake…
Shark's Equity Stake
Owner's Stake
If $250K = 20%, then $250K * 5 = 100%100% - 20% = 80%, or, 4 stakes the size of the equity stake
Therefore, 250K * 4 = $1M, owner’s stake of total 1.25M value
DOLLAR VALUE AND SIZE OF EQUITY STAKE DETERMINE VALUE
25%
25%25%
25%
AND the pie is smaller.
Shark's Equity StakeOwner's StakeOwner's Stake
25%
75%
As the shark gets more, the owner gets less -
Shark's Equity Stake
Owner's Stake
If $250K = 25%, then $250K * 4 = 100%100% - 25% = 75%, or, 3 stakes the size of the equity stake
Therefore, 250K * 3 = $750K, owner’s stake of total $1M value
IF DOLLARS STAY THE SAME AS EQUITY GOES UP, VALUE DECLINES
THE RIGHT FUNDING AMOUNT?
Employee Expenses
Infrastructure
Marketing Sales
Product Development
Miscellaneous
NOTES ON STYLE AND SPEECH
Tell a story
Practice and test
Make eye contact
Stand tall, speak slowly
Limit text, use big fonts
Use a neutral design
10/20/3010 slides.
20 minutes. 30 point font.
20 point font, Times
REFERENCES
– Duarte, Nancy (2012). HBR Guide to Persuasive Presentations. Boston, MA: Harvard Business Review Press.
– How to Change the World Blog. (2005). The 10/20/30 Rule of PowerPoint. Retrieved November 14, 2013. http://blog.guykawasaki.com/2005/12/the_102030_rule.html
– Small Business Blog, Wall Street Journal. (2012). The Venture Capital Secret: 3 out of 4 Startups Fail. Retrieved November 19, 2013. http://online.wsj.com/news/articles/SB10000872396390443720204578004980476429190
Recommended