Upload
patience-lambert
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
Artemis Ventures, LLC 1998 1
How to Create A Killer Business Plan and Financing Pitch
Christine ComafordManaging Director
Artemis Ventures, LLC 1998 2
Bio
Engineer, entrepreneur, venture catalyst 5x entrepreneur, 2 IPOs, 3 M&A, $100
million raised in last 5 years Venture Catalyst specializing in Enterprise
software & Internet enabling technologies 1 other partner Kimball Atwood
Artemis Ventures, LLC 1998 5
Did You Know?
VC investments in Internet firms by 1H99 were over $6 billion -- nearly 2x of 1998
TOTAL!
Source: IDC
Artemis Ventures, LLC 1998 6
Did You Know?
The #1 reason a startup’s valuation is cut is an
incomplete executive team
Artemis Ventures, LLC 1998 9
6 Things You Must Have
Stable, working business models Good business plan Competent management Great vision Big markets Good team
Artemis Ventures, LLC 1998 10
Business Model Components Markets & Customers
Profile and Segmentation Key Pain Points Size of the Problem in Dollars Location of those Dollars Competition
Products & Services Product Definition Value Proposition Total Cost Analysis Add-on Product Strategy
Artemis Ventures, LLC 1998 11
Business Model Components (cont’d)
Marketing & Distribution Marketing Strategy Sales Process Implementation Process Strategic Alliances
Financial Engine Pricing Model Revenue Model Cost Structure
Artemis Ventures, LLC 1998 12
1 - State Credibility
Exec team Pedigree (education, past startups) Publicity (published pieces, notoriety, awards) Connections (technology advisor to White
House, etc)
Well-known board members, advisors (who are betting on this company)
Artemis Ventures, LLC 1998 13
Who You Need On Your Team
Visionaries (assorted positions) Leaders (CEO, Managers) Implementers (Sales, Marketing,
Technology) Infrastructure Builders/Supporters
(Operations)
Artemis Ventures, LLC 1998 14
2 - Be Clear
Have 3 key points to deliver Show and tell your story (use words AND
pictures) Repeat the 3 key points at least 3 times Only tell stories that enhance your points
Artemis Ventures, LLC 1998 15
3 - Be Concise and Complete
Why is this a great idea? How will it be executed? How will risk be minimized, return
maximized? What are the sustainable barriers to entry? 20 page plan (3-5 page exec sum with 1
page financials)
Artemis Ventures, LLC 1998 16
Complete Means… Pain/Solution Opportunity/Market Size/Market Analysis Competitors: today and tomorrow Product/Service Definition & Futures Marketing Plan/Sales Strategy/Strategic
Alliances The Team: staff and extended Financials (create a dynamic model)
Artemis Ventures, LLC 1998 17
4 - Be Compelling
This is a HUGE opportunity, we’re the best to seize it, here are 3-5 specific reasons why
You think this opportunity is HUGE today? Check it out in 2-4 years!
There is major PAIN, we remove it -- no doubt
We have the team, technology, right market, “just add water”
Artemis Ventures, LLC 1998 18
5 - Give Them a Reason to Believe
Create the excitement (greed), then… Convey the long term vision (wow! Look
at all the additional markets we can get into!), then...
Spell out the short term practicalities (hey -- these guys look like they could actually make this happen!)
Artemis Ventures, LLC 1998 19
6 - Give Them the Right Info
What is your elevator pitch? In other words if you had to tell someone about your company on a short elevator ride, what would you say?
What product or service is sold?
Who is it sold to?
How much does it cost (average sales price)?
Artemis Ventures, LLC 1998 20
Right Info Cont’d How big is the target market?
What percentage of that market do you need to
penetrate to reach $30 million in sales?
What is your key competition?
What is your KEY differentiation from the competition?
Artemis Ventures, LLC 1998 21
Right Info Cont’d How long would this differentiation last?
Do you have customers? How many? Revenue? How much?Strategic Alliances? With whom?
Is your technology complete? If not, when?
Artemis Ventures, LLC 1998 22
7 - Present Properly
Practice and know it cold Have backup slides for key areas (such as
market segmentation, financials) Be ready with a reference list (for all key
execs, both personal and customer references)
Artemis Ventures, LLC 1998 23
How Long Should a Pitch Be?
A VC pitch should be 20 minutes long (goal: book next meeting)
A customer pitch should be 30 minutes long (goal: convince them to bring the decision maker in)
A recruiting pitch should be 30 minutes (goal: check them out,sell the vision, decide next step)
Artemis Ventures, LLC 1998 24
Rx for Not Naturally Born Speakers
Best speech coaches: Silicon Valley: Steve Mandel 408 475 8202
Boston: Cheever Communications 781 639 1516
Artemis Ventures, LLC 1998 25
Great Entrepreneurial Resources
Read “Burn Rate” - Michael Wolff Read “High Tech Startup” - John Nesheim Check out www.vfinance.com,
www.startupweb.com www.artemisventures.com resources
section has growing library of goodies
Artemis Ventures, LLC 1998 27
Do You Have These?
Right market Right product/service Right timing Right info Right priority Right connections Right team
Artemis Ventures, LLC 1998 28
Christine ComafordGeneral Partner and Managing Director
Thank You
Q & A/Lab Time
Artemis Ventures, LLC 1998 29
Good Idea? Bad Idea?
Your startup is HOT! You do 3 VC pitches and also get some fabulous
press. 10 more VCs call you, and you book meetings with them.
Artemis Ventures, LLC 1998 30
Good Idea? Bad Idea?
You get 2 term sheets for a $3mil investment both from 2 high value VC
syndicates. One is for a $6mil pre money valuation and 1 board seat. The
other is for an $8mil pre and 3 board seats. There are a total of 5 board seats. You choose the $6mil pre.
Artemis Ventures, LLC 1998 31
Good Idea? Bad Idea?
Your startup’s product/service is nearly ready for beta. You can take $1mil to get through the beta, sign on a few customers, and make a few key hires, OR you can take $3mil to do even more. With the $1mil you’ll need to start fundraising again in 3 months, with
the $3mil you’ll start fundraising in 12 months. You take the $1mil.