BYOBB Elements of a Pitch Deck

1. BYOBB Elements of a Pitch Deck February 5, 2015

2. BYOBB Pitch • What it is: • A six-to-eight minute presentation with an investor focus • Grabs attention early and keeps it by hitting highlights • Leaves the investor eager to know more • What it isn’t: • A technology presentation • A sales presentation • An opportunity to “get in the weeds”

3. What Investors/Reviewers Want to Know • What is the opportunity? How big is it? • How do you make money? • Do you have proof that customers will buy? Is it essential or a nice-to-have? • Can you defend it in the market? What’s the secret sauce? • Can you execute? Can you prove it with the management team’s track record? • What will you do with our money?

4. Big Hint… • There is a big difference between a pitch deck when you narrate and when you are sending as a stand-alone. • Ideally you have two separate decks • BYOBB : Create a narration deck, and include your notes in the note section, if the slides don’t tell the story on their own

5. Title Slide • Include on the slide • Company name, logo and date of presentation • Ensure a highly professional image – get help if you need it • Talk about… • What your company does (high level) • Open with a “wow statement” that commands attention

6. The Opportunity • Who is the customer? • What is their problem? • Why do you know about this problem? A very effective technique here is to tell a story: • I was making a lot of money running my own technology consulting company, and yet, I wasn’t saving any money, and was surprised when I couldn’t make ends meet. I decided to… • I was watching my brother juggle two kids and a shopping list, and I figured there had to be a better way! • I worked in a winery for three years, and was appalled by the amount of fruit we were throwing away.

7. Customer and Problem: Example

8. Product/Service Description Don’t get in the weeds: this is not a sales presentation! Briefly explain your product or service Why and how does it solve the defined problem? Provide diagrams, photos, videos

9. Product/Service Description: Example

10. Product/Service Description

11. Market/Opportunity • Goal: Show how big the market/opportunity is, discuss your target market, and which segments you are going after first • Explain • How is the market solving the problem currently? • Why is your solution superior? • What is your value proposition • Must be compelling and believable • What is the target market and size? • What segments are you addressing? • What are the size of each? • Prioritize segments; provide justification

12. Market/Opportunity Example – Part I

13. Competitive Landscape • What other firms and products are providing solutions to the problem? • What differentiates your product or service? • Superior performance, lower cost alternative, lower side effects, etc. • How entrenched is the competition? • What are their weaknesses? • Perceptual maps can help • Comparison charts are useful • What are the “barriers to entry” for others/how will you discourage new competition

14. Competitive Landscape: Example

15. Competitive Landscape – Example 2 Hint: It’s okay to have the competition do some stuff you can’t do. This is how you show which niche you are going for. Hint: Make Criteria 5 the game-changer.

16. Go to Market Strategy (Part of Execution Plan in the Business Plan template) The Revenue Model can be its own page, and should tie to the pro forma • How will you reach target customers and drive revenues? • How will you make money (revenue model)? • Sell product or service direct to customer • License technology • Develop product then sell to competitor • Merger-acquisition • What are the key messages for your target market segments? • Describe marketing and sales plan • What partnerships or alliances are necessary?

17. Go to Market Strategy: Example

18. Management Team Demonstrate you have the right team to execute! • Management Team • List two or three key players: CEO is the focus • List successful exits, impressive affiliations, inventions, discoveries, degrees, etc. • Acknowledge additional key players needed • Advisory Board • List three or four highly impressive members • Round out deficiencies or weaknesses of management team • Notable industry experts, key executives or former key executives in your field/industry

19. Management Team: Example

20. Show key drivers of revenue Threeyears’ financial projections plus history These numbers must match the numbers in your proforma income statement Financials

21. BizClarity Rules for Financial Projection Slides • Use a table, not a graph. • Make the font legible font (sans-serif; not less than 18 pt for anything; 24 is better). • Round to nearest 1000, and add the legend “($000)”   Example:  $1,236,354 displays as 1,236. • Show actual calendar years, not quarters and not “Year 1, Year 2″ • Use a horizontal table with years across the top row. • Go out three years in the future. • Put nothing else on the slide except the table.  No extra bullets or images.  No long title of summary statement—save it for your narrative. • All you need for the slide title is “Financial Projections.” http://bizclarity.com/handout-basics/

22. Road Map - Milestones • What milestones are you aiming for in the near future? How much funding will it take to reach them? What milestones have you already reached? • You can show this as a timeline, gantt chart, etc

23. Milestones: Example

24. Roadmap - Funding and Uses (If applicable) Goal: Show past investment, current need, primary use of funds • How much have you raised to date and from whom? • Show founders investment and/or “skin in the game” from management team • List current and future asks • How will the funds be used? • For therapeutics and medical devices, show clinical trials milestone with needed funding

25. Funding and Uses: Example

26. Road Map - Exit Strategy (if applicable) • Goal: Reassure the investor that they will make money on your opportunity • Questions to answer: • When will investors receive back their money? • What multiples are likely? Are there comparable exits? • Provide examples where possible • What will be the scenario? • Acquisition by competitor or market leader • IPO (proceed w/ caution!)

27. Summary Slide (Optional) • Goal • Summarize the reasons that an investor should invest in your company. What’s in it for them • Notes • You can end with the Funding Page if you’d like • The last slide stays up throughout Q&A so make sure it’s a good one

28. Summary: Example

29. Ellen’s Rules • Forget the rules (including mine) and do what’s right for you and your company • Forget the 10-slide rule, but do…. • Tell a story. Make it compelling • Keep it simple and short. (Put extra material in your appendix.) • Cover all the necessary info • Show us what the product looks like • Pitch decks and standalone decks should be separate. In certain cases, use the pitch deck and use the Notes Feature • Never: • End with: Any questions? Last slide should be a summary and contact info • Say: This estimate is conservative • Say: We have no competition • Include decimals in your financials

30. We’re investing in you • Be passionate • Be entrepreneurial • Be honest • Be coachable • Do your homework • Listen and accept negative feedback