The Keys to Raising Money for Your Venture

1. The Keys to Raising Money for Your Venture Presented By Stu Benton Soundview Partners

2. Where Do You Get The Money? • Start Up or Seed Capital ( Less than $1 million) • Friends and family • Angel investors • Industry partners • Venture Capital Funds • Product in market • Paying customers • Boot strap Soundview Partners

3. The Five Key Factors Investors Look For • People • People • People • Market • Product Soundview Partners

4. The Three Risk Areas Investors Consider • Management risk • Market risk • Technology risk Soundview Partners

5. The Best Technology NEVER Wins!!The Best Marketing Will Win!! Soundview Partners

6. You Need Three Key Things to Ask For Money • Tell The Story Of Your Company In Increasing Detail • Telephone Pitch [Elevator Pitch] • Executive Summary • Team Presentation Soundview Partners

7. The Telephone Pitch • One to two minutes max • Get foot in the door • Four Key Items • This is the problem • This is how we solve it • This is how we’re different • This is who we solve it for Soundview Partners

8. The Executive Summary • One Page • Clear, concise, brief, no buzz words • Your mother should understand it • Get VCs to let you in the door Soundview Partners

9. The Executive Summary • Opening sentence: crystal clear statement of what your company does • The compelling need • How your company fills the need • The value proposition • Cost savings • Improved performance • Your competitive advantage Soundview Partners

10. The Executive Summary • Customers/Prospects • Market size and industry forces • Briefly explain how company and technology work • Project into the future Soundview Partners

11. Presentation Guidelines • 15-20 slides • Plain background, logo on all slides • Slides are an outline • Short words and phrases…no jargon • 7 by 7 rule • No clipart,animation & etc…appear only • Slides or speaker Soundview Partners

12. Objective Of The Presentation • To get the investor interested enough to go the next step…..due diligence Soundview Partners

13. What is The Presentation? • Bare bones version of business model • What is the business problem you solve? • What is the value proposition? • Who are your customers? • Who is your competition? • How do you differentiate yourself? • How do you make money? • How much money? Soundview Partners

14. The First Four Slides Make Or Break Your Presentation • Announce the problem and how you solve it • Slide 1: Title Slide ….Introduce yourself and team • Slide 2: What’s the compelling need • Slide 3: How you satisfy this need • Slide 4: What’s the size of the market Soundview Partners

15. Slide 2: Compelling Need/Business Problem • What is the problem • How significant is it Soundview Partners

16. Slide 3: How You Solve This Problem • Overview of how you solve this problem • Your value proposition.. • Cost Savings • More efficient • Actual customers/prospects…what they say Soundview Partners

17. Slide 4: The Market • How Big • How fast is it growing • Who are the customers Soundview Partners

18. Slide 5: Highlights of Your Company • Employees • Revenue size…if any • Products Status • Patents • Where is the company today Soundview Partners

19. Slide 6: Industry Trends • Industry forces [Drivers] • Serious • Sustainable • What this means for the future • How/why you exploit driving forces Soundview Partners

20. Slide 7: Product/Service Overview • Product families..beta..prototype • How do they work • Show & tell • Market focus • What is unique Soundview Partners

21. Slide 8: Your Competitive Advantage • How customers do things now • Drawbacks, problems • How impacts customers bottom line • Strategic problems Soundview Partners

22. Slide 9: How You Solve This Problem • Specifically how you solve the problem • Your value proposition…hard facts $,% • Cost savings • Performance • Customers/prospects • Use as examples…what are they doing • Get quotes Soundview Partners

23. Slide 10: Competition • Demonstrate complete understanding • Rational, objective and measurable argument • Who are they • Direct/Indirect • Potential • How do they compare • How are they doing • How does the market see them Soundview Partners

24. Slide 11: Your Competitive Advantages • Why you will win • Do differently • Why they can’t • Real advantages • Nine to twelve months time advantage Soundview Partners

25. Slide 12: The Future • Opportunities to leverage technology • New products • New Markets Soundview Partners

26. Slide 13: Financials • Quarterly sales and net income • Two Years, eight quarters • Show when breakeven • Assumptions..How derived Soundview Partners

27. Slide 14: Financials • Five year sales and income • By year • Assumptions • Logic behind #’s Soundview Partners

28. Slide 15: Financials • Financial Model • Table • %’s • Gross Margin • Sales Cost • G&A • Research & Development • Logic behind #’s Soundview Partners

29. Slide 16: Management Team • Present team & experience • Unfilled positions and timing • Advisory board & experience Soundview Partners

30. Slide 17: Summary • Key four points • What’s the problem • Here’s how we solve it • Here’s our advantage • Here’s the market we solve it for Soundview Partners

31. Slide 18: Ask for the Money • Here’s how much we need $3 million Soundview Partners

32. Two More Things You Need • List of references • Ten page business plan • Use presentation as outline • Leave behind Soundview Partners

33. Giving The Presentation • Practice, practice practice • You’re a team • Have all your facts • Get them asking questions • Get them on you side • Get their feedback • Follow up Soundview Partners

34. Buy This Book “Smartups” By Rob Ryan Founder of Ascend Communications Founder of Start-up Boot Camp Soundview Partners