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How to do a Written Presentation Andrew Aday Venture Series 2014 Raising Money!. AGENDA. Financing Sources Options Where and How? Presenting to Judges What should you prepare ?. Show me the Money. Sources of Finance. Internal Finance. External Finance. Debentures IPO Loans
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How to do a Written Presentation Andrew Aday Venture Series 2014 Raising Money!
AGENDA • Financing Sources • Options • Where and How? • Presenting to Judges • What should you prepare?
Sources of Finance Internal Finance External Finance Debentures IPO Loans Overdrafts Trade Credit Grants Debt Factoring • Friends and Family? • Retained Profits • Sales of Assets
Funding source? • Seed Investment or Venture Investment? • Angel Investors vs. Venture Capital? • Friends and Family? Potential Market SizeIdeal Funding Source Small < $100 Million Bootstrap or Angel Unclear Bootstrap/Angel then VC Large = > $1 Billion Venture Capital
Raising Money: The VRIONIS LAW Making Your Judge Remember You: The ADAY LAW
What do Judgeslook for (Highest Level) • Star Founding Team • There is a REAL need • Unfair competitive advantage • It makes sense
Great Plan Requires a Simple Idea • 25 words or less • The Napkin test • Simple Idea • (Not simple concept) • Google: “Our search algorithms….” “We Organize the World’s Information”
General Hints • Imagine the attention span of the judge • Gear language to audience • If it doesn’t add value, drop it • You CANNOT lose your judge’s attention
The Secret Sauce Part I—The formula Part II (Flexible) • Product/Brand Positioning • Market Size • Distribution Approach • Operations Plan (Team?) • FINANCES • Product/Service Vision (end game) • Conclusion • Introduction • Problem • Why is this a problem? • Current solutions • Why do these solutions suck? • Your product/plan/proposal (drop the napkin) • Why your idea actually works
Opening and Closing Introduction Conclusion End with the BIG picture Connect with the intro. Reiterate emotional appeal Thank the judge, ask if he/she has questions • Draw the judge in • Introduce the pathos • Make the emotional appeal • Tell a story
Finance and stuff • 12 Slide Rule • 15Minutes • 10Minutes to tell the story • 5Minutes Q&A Standard Financial Documents: • Balance Sheet • Profit/loss Statement • Cash Flow Statement
Background • Context for the opportunity • Problem you are solving • Disruptive wave you are riding • Answer the Question: Why now?? • Is there an inflection point in the market to leverage?
15 Minutes to Hook • What is your solution and how does it work? • Save gory details for follow on session • Competition: Ideally position against ONE competitor • 2 x 2 Matrix • SILVER BULLET TEST (if you had ONE, which company would you kill) YOUR COMPANY HERE Value Competition Performance
Explain the Market Opportunity • Single biggest determinant of outcome • If you get the product market fit right, you can f@%k up almost everything else Great management team + lousy market Market wins Lousy management team + great market Market wins Great management team + great market Market Wins • What is your TOTAL ADDRESSABLE MARKET (TAM) • See next slide (size matters) • How fast is it growing?
Go To Market Strategy • VERY VERYVERY IMPORTANT • Direct? • Inside Sales or Outside Sales? • Channel • When and How? • DETAILS ON HOW THE ECONOMICS WORK • Cost of Customer Acquisition • Conversion percentages • Contribution Margin
Funding To Milestones Chart Series B Series C Series A Seed/Ramen Year 2 Year 3 Year1 Year 4 Alpha Beta FCS $10M in Rev Milestone $1M in Rev -$6M Total Cash Needed $-.5M -$1.2M -$20M 22 35 65 Headcount 8 15 Milestones
QuesTIONs You Should Expect • DifferentiaTION • MonetizaTION • CapitalizaTION • ValuaTION • CompetiTION
Pitching Summary • You must compel! • A great idea in 30 words or less • Nail the Market-Product Fit • Ask: Does it make sense?
HOMEWORK: Positioning/Messaging • On ONE Slide – answer ALL of the following questions: • What do we do? • Why does it matter? • What is the core problem? • How do you fix it? • How does what we do work? • What’s the benefit? • Why our Company? Why not another in the same space?