Business Pitch GuideA Wadhwani Foundation Knowledge Resource

Business Pitch Guide Enables You To…

• Initiate conversation on the right note and keep it casual without exhibiting anxiety

• Keep the judges and target audience engaged

• Avoid overdose of information - just about the right information to grab interest

• Create a compelling story in a crisp and concise manner

Avoid Common Mistakes

• Rushing into the pitch: VCs invest in people first and their ideas next. So, don’t rush into the pitch right away. Talk about your and your team and humanize your story. “I used to work at Microsoft and had this idea..” etc.

• Information overload: Too many slides, too many product details, or too many financial details., Limit to 10-12 slides - 2 minutes of pitch followed by 2 minutes of Q&A

• Belittling or ignoring competitors (common mistake - ‘we have no competitors’)• Assumptions – Things you can’t validate or don’t have data on

• False confidence or arrogance

Business Pitch Template

Business Pitch Outline

• Introduction : point out the important stuff

• Problem & Your Solution : What need do you fill? Other solutions

• Momentum, Traction, Expertise : Your key numbers/data-points

• Product Demo (if applicable)

• Market Opportunity : Define market size & your customer base

• Product or Service : Your solution

• Business Model : Key revenue streams

• Market Approach & Strategy : How you grow your business

• Team & Key Stakeholders : Co-founders, Investors, Advisors

• Financials

• Competition

• Investment : Your ‘Ask’ for funding, Basic use of funds

• A quick 2/3 lines summary that combines your vision/product and the mission of your company e.g. we solve [problem] by providing [advantage], to help [target] accomplish [target’s goal]

• Keep it short, simple and memorable• Keep it broad and avoid getting into too many specifics

• Avoid jargon (no ‘out-of-the-box’, ‘paradigm shift’, ‘synergy’ etc.)

• Use terms that are easily understood by a layman, rather than filled with acronyms and industry

terminology

• Make it relatable e.g. “We are X for Y”/“We are the Flipkart for Office Supplies”/

• “We are the Café Coffee Day of Natural Ice Creams”The most important

slide.

Most VCs will have

made the decision

whether your startup

is of interest or not, by

the end of this slide.

Traction

• The purpose of this slide is to demonstrate that what you are offering is wanted by the market (‘Product Market Fit’)

• Show your timeline, current status, milestones reached, and milestones soon to be achieved• Growth metrics are key at early stage

• Highlight press, partnerships, accolades• Customer success stories and/or testimonials

The Problem

• Define the real problem/need (current or emerging) you’re solving, and for who (target segment or market)

Your (unique) Solution• Describe how your solution solves an important pain point and how it is better or

different than anyone else?

• Who else is already doing this, how are they going about it and what are they not getting right or doing wrong?

• Define Your Market: What business/space you are in?

• How is this market evolving and what are the trends (e.g. growing 50% annually)

• Total Market Size: How big is the market (e.g. Rs. 10 billion etc.) and what’s your place/niche in this market opportunity?

• Customers: Clearly define who (niche/segment) you serve; show that you really understand where your prospective customers

Demo

• This is where you can demo your product or show a prototype or a sample or give a taste of what you are building

Product / Service

Tell the story of your customer andhow they use/value your product orservice.

State clearly and quantify to theextent possible the three or four keybenefits you provide, and whospecifically realizes these benefits.

Images and visuals are better than lotsof text: Show. Don’t tell.

Revenue Model

• Who is your primary customer, how do you intend to get a share of their wallet & why your company is going to be profitable?

• What is the pricing model?

• What are the unit economics (how much profit per unit of your product/service)?

• Revenue and # of customers to date

• Show the basic math on revenues and conversion rates

• Life-time value of an average customer (how many months, how manyrupees/dollars)

Show the top revenue

source and then identify 2 other

sources. Remember

the 80-20 rule. What

will bring 80% of the revenues?

Marketing & Growth Strategy

• How will your potential customers find you (product discovery)?

• What are the most important/unique channels and methods you will use to find and win customers?

• How much will cost you to get a customer (customer acquisition cost)?

• How will you achieve your target growth rates?

• How are you doing it differently than others in the space?

Team

• Highlight key team members and their prior positions, successes, domain expertise

• Highlight relevant experience

• Which roles are the keys to success in your company/space?

• Investors should be confident that there is a good credible core team (minimum viable team) that believe in the company and can execute

Share how your team

came together to

create this startup. VCs

want to know your

team dynamics and if

the team will stick

together for the long term.

Forecast / Financials

• Include 3-5 years of financial projections

• Mention key & critical assumptions in your model of expenses, customer conversion, market penetration%

• Highlight each of these yearly for at least 3 years:

o Total Customerso Total Revenueo Total Expenseo EBITDA (Total and as a %)

• You need to communicate an overall picture of the economics of your business, the trends in the market segment, and an understanding of your business

Competitive Advantage

• Having competitors is a good thing - no competition is not always a good sign. Do not knowingly hide your competitors. Embrace competition and use it as a way to prove the market opportunity

• Remember, competition is not necessarily others solving a particular problem in the same way that you are. Competition is often disguised as alternatives that your potential customers are currently using

• Provide an overview of existing players and competitors. You will come across as credibile by showing that you are aware of all the major competitors and have a strategy to compete with them

• What are your ‘unfair’ advantages over your competition? Is it some unique technology, patents, contacts, agreements in place? And how long can you sustain that competitive advantage?

The Ask

• State how much money you are raising, and with what general terms: Equity, Debt, Convertible Note

• What milestones do you plan to reach with that money? (give a clear picture of where your startup will be after the money is raised)

• What are the key areas that the money will be used for (Use of Funds)?

o Sales & Marketingo New hireso Technology / Product or Service developmento Capital expenses / equipment

• Who are your existing & notable investors, if any?

Summary

Summarize your pitch in about 3 bullets• Your differentiation and unfair advantage over others

• What your startup does and how it does it uniquely• The total market size of the problem you are solving

Thanks & Attribution

• We used many sources to compile this template.

• Some of the sources we used are:

o Crowdfunder Blogo Guy Kawasaki Blog on Business Plan o Garage Technology Ventures