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Copyright 2005, Alliance of Angels
Alliance of Angels:Alliance of Angels:Presentation GuidelinesPresentation Guidelines
Last Updated Monday, August 1, 2005Last Updated Monday, August 1, 2005
Aaron Coe, Program ManagerAaron Coe, Program ManagerEdward Hansen, Program ManagerEdward Hansen, Program Manager
Alliance of AngelsAlliance of Angels
http://www.allianceofangels.com/startupshttp://www.allianceofangels.com/startupshttp://www.allianceofangels.com/startupshttp://www.allianceofangels.com/startups
Copyright 2005, Alliance of Angels
Alliance of Angels: Alliance of Angels:
MIT Enterprise Forum ~ April 7, 2005MIT Enterprise Forum ~ April 7, 2005
Aaron Coe, Program ManagerAaron Coe, Program ManagerAlliance of AngelsAlliance of Angels
2004-05 Preston Gates & Ellis Fellow2004-05 Preston Gates & Ellis Fellowacoe@allianceofangels.comacoe@allianceofangels.com
http://www.allianceofangels.comhttp://www.allianceofangels.com
Providing the Venue for Angel Investors and Startup Companies to MeetProviding the Venue for Angel Investors and Startup Companies to Meet
Introduction
Copyright 2005, Alliance of Angels
The ProblemThe Problem
• Define the problem and WHO has Define the problem and WHO has this painthis pain– GraphsGraphs– PicturesPictures– Tell of a Problem Scenario that sets up a Tell of a Problem Scenario that sets up a
Usage case for your product or serviceUsage case for your product or service
The Problem
Copyright 2005, Alliance of Angels
The SolutionThe Solution
Overview of primary product or Overview of primary product or service that will solve the problemservice that will solve the problem
The Solution
• Use multiple slides if necessary Use multiple slides if necessary
• Do not exceed time limitsDo not exceed time limits • Product Photos, Screen shots Product Photos, Screen shots
• Logical Flow and Architecture diagramsLogical Flow and Architecture diagrams
• Short list of Feature/BenefitsShort list of Feature/Benefits
Be clear about the status of Be clear about the status of product developmentproduct development
Copyright 2005, Alliance of Angels
Traction SlideTraction Slide
• Founded in 2003Founded in 2003
• 3 full-time employees, 3 part-time3 full-time employees, 3 part-time
• Released v.1 fall of 2004Released v.1 fall of 2004
• 15 Beta Users, 10 Paying customers15 Beta Users, 10 Paying customers
• Signed up 3 channel partnersSigned up 3 channel partners
• Received ABC certificationReceived ABC certification
• 1 provisional Patent filed1 provisional Patent filed
• Licensed X patented technology from Y companyLicensed X patented technology from Y company
Traction
Copyright 2005, Alliance of Angels
Market SizeMarket Size
• Build the number from the ground upBuild the number from the ground up• Total Total AddressableAddressable Market Market • Use drivers relevant to your productUse drivers relevant to your product
• Show the different segments Show the different segments – Pie Graph works wellPie Graph works well– Explain how you prioritize the segmentsExplain how you prioritize the segments
• ““This is our initial market” (speak to why)This is our initial market” (speak to why)
• If you must use 3If you must use 3rdrd party figures, cite the party figures, cite the sourcesource
Market Size
Copyright 2005, Alliance of Angels
CustomersCustomers• Current CustomersCurrent Customers
– 85 startup companies like the following85 startup companies like the following– All companies paid full price of $0.00 per visitAll companies paid full price of $0.00 per visit
Customers
• Potential CustomersPotential Customers• Early stage technology companies raising between $250K to $3MEarly stage technology companies raising between $250K to $3M
– Your Company, Inc. Your Company, Inc. – His Company, Inc.His Company, Inc.– Her Company, Inc.Her Company, Inc.
Copyright 2005, Alliance of Angels
Revenue ModelRevenue Model• Licensed SoftwareLicensed Software
• Hosted Solution, Monthly Fee + 2% of all transactions Hosted Solution, Monthly Fee + 2% of all transactions booked through our systembooked through our system
• We Sell Widgets; Direct and Through a ChannelWe Sell Widgets; Direct and Through a Channel
• Time and MaterialsTime 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
Copyright 2005, Alliance of Angels
Sales CycleSales CycleHow do you sell your product? Direct and/or Channel SalesHow do you sell your product? Direct and/or Channel Sales
If DirectIf Direct, , • How many sales people?How many sales people?• How long does it take to close a deal?How long does it take to close a deal?• Who is the key decision maker? (Especially if that differs from Who is the key decision maker? (Especially if that differs from
the key user)the key user)
If Channel,If Channel,• Who are the partners?Who are the partners?• How many are required?How many are required?• How are the territories divided? (If relevant) How are the territories divided? (If relevant)
Sales Cycle
Copyright 2005, Alliance of Angels
CompetitionCompetition
• Indirect CompetitionIndirect Competition– Summarize the current alternatives (other Summarize the current alternatives (other
technologies or types of products)technologies or types of products)
• Direct Competitors Direct Competitors (logos are easier to read than text)(logos are easier to read than text)– List competing company 1 and an analysis List competing company 1 and an analysis – List competing company 2 and an analysis List competing company 2 and an analysis – List competing company 3 and an analysis List competing company 3 and an analysis
• Use a matrix if possibleUse a matrix if possible
Competition
Copyright 2005, Alliance of Angels
PartnersPartners
• Pay Sponsorship for Pay Sponsorship for MBA fellowsMBA fellows
• Contribute to deal flowContribute to deal flow– Commitments renewed Commitments renewed
on an annual basison an annual basis
• In-kind sponsorIn-kind sponsor• Public Relations StrategyPublic Relations Strategy
Partners
Copyright 2005, Alliance of Angels
Management TeamManagement Team• Name, PositionName, Position
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, PositionName, Position – Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Position Name, Position – Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Position Name, Position – Actively recruitingActively recruiting
Management
Copyright 2005, Alliance of Angels
Advisory BoardAdvisory Board
• Name, Area of ExpertiseName, Area of Expertise– Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Area of ExpertiseName, Area of Expertise – Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Area of ExpertiseName, Area of Expertise– Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
• Name, Area of ExpertiseName, Area of Expertise– Company, Position (VP or above), YearsCompany, Position (VP or above), Years
– Prior Company, Position (VP or above), YearsPrior Company, Position (VP or above), Years
Advisory Board
Copyright 2005, Alliance of Angels
Five Year Projections (Millions, US)Five Year Projections (Millions, US)
-$10
$10
$30
$50
$70
$90
$110
$130
$150
2002 2003 2004 2005 2006 2007
Revenue
Expenses
Income
Assumptions:
– In 2006, $__ per sale
– In 2006, __customers
– 2006 market share: __ %
– In 2006, __% from new sales; __% from recurring
– U.S. market only
– Does not include future product extensions
This is an example for demonstration purposes only
Financial ProjectionsFinancial Projections
Global Assumptions
• Legislation passes in year 2
• Year 3 we get certification to market in the U.S.
Financials
Copyright 2005, Alliance of Angels
Funding RequirementsFunding RequirementsPrior Funding: Prior Funding:
- $ from founders, $ from outside investors, $ grants- $ from founders, $ from outside investors, $ grants
Current Round:Current Round:- Seeking $1 million ($500,000 raised)Seeking $1 million ($500,000 raised)- Pre-money valuation: $2 million (range will be fine) Pre-money valuation: $2 million (range will be fine)
Use of Funds:Use of Funds:- Finish v 2.0 PrototypeFinish v 2.0 Prototype- Launch in xxx marketLaunch in xxx market- File patentsFile patents
Future rounds:Future rounds: - Series B of $ million expected in early 2004- Series B of $ million expected in early 2004
Exit Strategy:Exit Strategy:- Acquisition (perhaps Microsoft, IBM or Nike)Acquisition (perhaps Microsoft, IBM or Nike)
The Offer
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