The 8 Minute Investor Pitch

1

Cleantech Network, LLC. Resource: MI-SBTDC

The 8 Minute Investor Pitch

Cover sheet with company logo

and tag line

Basic tips:

-No type smaller than 28 point-- the bigger, the better

-No full sentences, brief points only

-As many graphics as possible / as many graphics as it makes sense to include

--business-focused presentation (vs. technology-focused)

--Can a 10-year old understand what you do from this presentation?


Introduction

Anatomy of the 8 Minute Pitch

The Problem

The Solution

Sales Strategy

Competition

Traction/ Milestones

Management

Revenue Model

Financials

The Offer

Market Size

The Technology

2


Company Name & LogoContact formation

Date

Audience

Presenters

One Line Description of what your company does

Introduction


The Problem

• Define the problem and WHO has

this pain

– Graphs

– Pictures

– Describe a problem scenario /usage case

– The goal is to get everyone nodding &

“buying-in”

The Problem

3

5

75-100 Million Interviews (Per Yr)

$350 Billion Claims Related (Per Yr)

Process is “Off The GRID”

Paper

Claims File

Weeks and Months

The Problem: Recorded Claims - Example


The Solution

Overview of primary product or

service that will solve the problem

The Solution

• How do you alleviate the “pain”

• Use multiple slides if necessary – see

“The Technology” slide

• Short list of Feature/Benefits

4


The Technology

• Quick overview of the company’s technology

• Tie to the Solution

• Do not exceed time limits- avoid in-depth

technical explanations

• Product Photos, Screen shots

• Logical Flow and Architecture diagrams

The Technology

8

$15M Savings (Per Yr): Farmers Insurance

24 x 7 x 365 Availability

Giant, Untapped Data Asset

Minutes

Claims Rep

Interviewees Bridge .WMA

The Solution: Digital Service - Example

5


Traction/ Milestones Slide

Traction/ Milestones

Today 200__ 200__200__

Proof of Concept Tech. Development / Scale-Up Launch

Incorporated

Mngt. Team in Place

Provisional Patent Filed

Beta test

Paying customers

Strategic channel partners

Received A round Financing

Customer Launch

Be clear about the status of product development


Market Size

• Build the number from the ground up• Total Addressable Market

• Use drivers relevant to your product

• Show the different segments

– Pie Graph works well

– Explain how you prioritize the segments• “This is our initial market” (explain why)

• If you use 3rd party figures, cite the source

Market Size

6


Total Addressable Market: US home broadband users

ages 12 to 34 who actively consume internet video

7

2.7

4.4

22.4

8.5

14.1

14M2006

45M2011

29-34yrs18-28yrs 12-17yrs

Market Size - Example


Customers• Current Customers

– 83 startup companies like the following:

Customers

• Potential Customers

• Early stage technology companies raising between $250K to $2M

– Your Company, Inc.

– His Company, Inc.

– Her Company, Inc.

http://www.verus-tech.com/home

http://www.ixio.com/

http://www.geospiza.com/appliedbiosystems/index.htm

http://www.junxion.com/index.html

7


Sales Strategy

How do you sell your product? Direct and/or Channel Sales

If Direct,

• How many sales people?

• How long does it take to close a deal?

• Who is the key decision maker? (Especially if that differs from the key user)

If Channel,

• Who are the partners?

• How many are required?

• How are the territories divided? (If relevant)

Sales Strategy


Revenue Model

• How do you make money? Who pays you?

• Licensed Software

• Hosted Solution, Monthly Fee + 2% of all transactions

booked through our system

• We Sell Oxygen Molecules; Direct and Through a Channel

• Time and Materials

Revenue Model

Cost $650

Distributor

$1750

Retailer $2000

Customer $2500

Gross Profit

$1100

Avg Customer Buys

24 Widgets per year

20%

10%

Gross Margin

>60%

Average Customer is worth

$60,000 in annual Revenue

This is an example for demonstration purposes only

8


Revenue Model (alternative)

Revenue Model

• Provide a diagram of your business environment (value chain)

• Who are the Stakeholders?

• How are they related?

Company

License

Holders

Mfgrs.VAR

End User

Technology

Licenses

License

Revenue

Sales

Dollars

Tech. &

Mfg. Fees

Components

Finished Goods

& Services


Competition

• Indirect Competition

– Summarize the current alternatives (other technologies or types of

products)

• Direct Competitors

(logos are easier to read than text)

• Use a matrix if possible

Competition

Energy

output

Weight Durability Cost

You

Competitor

1

Competitor

2

9


Management Team

• Name, Position– Prior Company, Position (VP or above), Years focus on successes, exits

– Prior Company, Position (VP or above), Years

– Entrepreneurial experience (if any)

• Name, Position– See above

• Name, Position – See above

• Open positions– VP Sales

– Head of QA

Management


Advisory Board

• Name, Area of Expertise– Company, Position (VP or above), Years








Advisory Board

10

Financial ProjectionsFive Year Projections (Millions, US) Assumptions:

– In 2010, $__ per sale

– In 2010, __customers

– 2010 market share: __ %

– In 2010, __% from new

sales; __% from

recurring

– U.S. market only

– Does not include future

product extensions

This is an example for demonstration purposes only

Financials

3

-0.5

100.1

40

20

80

50

120

70

-20

0

20

40

60

80

100

120

Do

lla

rs (

$M

M)

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue Income

Financial Projections (alternative)

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue

COGS

Gross

Margin

OpEx

Net Inc.

Financials

11


Funding Requirements

Prior Funding: - $ from founders, $ from outside investors, $ grants

Current Round:- Seeking $1 million ($500,000 raised)

- Pre-money valuation: $2 million

Use of Funds:- Finish v 2.0 Prototype

- Launch in xxx market

- File patents

Future rounds:

- Series B of $ million expected in early 2007

Exit Strategy:- Acquisition (perhaps Microsoft, IBM, Nike, or Gatorade)

The Offer


Last slide:

• Company logo

• Your name and title

• Phone number

• Email address

Documents

The 8 Minute Investor Pitch