business plan & presentation workshop
TRANSCRIPT
Business Plan &
Presentation WorkshopIGAMING ENTREPRENEUR CONFERENCE 2015
My Background
22 year experience Finance, Venture Capital & iGaming
Co-founder $450m media tech venture capital fund
Chairman of Clarion Launchpad since 2010 (EIG and GIGSE)
Editor, Business & Finance, iGaming Magazine
Operating Executive Global Leisure Partners
Consultant Innovation Capital
Advisor to various early stage companies
Goal of a Winning Presentation
More than just raising capital
Verbal and numerical representation of your business
Prove your concept
Keep You Focused
Thought Provoking Tips
What problem am I solving? (Not looking for a problem)
Every statement is a page turner (why now, what’s missing)
Long enough to keep interest; Short enough to keep interest
Why am I the lucky SOB?
Know your audience (variable knowledge)
Demonstrate your business is financially scalable
What is your Exit? (2 doors: IPO or sale)
Most important: People invest in people! (are you backable?)
What documents do you Need?
Presentation (Powerpoint)
Abridged
Complete
Business Plan (Word)
2-Pager
Executive Summary
Complete
Financial Model (Excel)
Non-Disclosure Agreements
YES?
NO?
WHEN?
Non-Disclosure Agreements
Financial versus strategic investor
NDA can put investors in conflict
Probably already seen something similar
Do your own due diligence
Insisting could make you look a bit ignorant (seasoned
entrepreneurs know investors don’t like signing NDAs)
Only appropriate once you get into deep due diligence
What’s in a Presentation?
Company Overview
Market Opportunity
Product Overview
Management team
Industry Background
Competitive Overview
Marketing Plan
Customers & Partners
Milestones & Product
Roadmap
Technology
Regulations
Financial Projections
Capital Raise
Considerations
Summary
Company Overview
Who you are
Where you are
How many you are
How old you are
What you are
Where you are going(?)
Market Opportunity
The most important section
What is your USP?
Why are we here?
What’s missing?
Why now?
What hole are you filling?
Why should I turn this page?
Dogs Pigs
Cash
CowsStars
Product Overview
What you do?
How you do it?
URL
Video
Graphics
Technology stack
Management Team
Highlight team, not individual
Advisors, Board Members
Experience in industry
Worked together?
Can you demonstrate leadership
Are you backable?
Industry Background
Market size to date
Market projections
Demographics
Industry at an inflection point?
Where do you fit it?
What holes are you filling
Pet Peeves
Never say there are competitors
Don’t use category killers
Be careful when comparing to industry leaders
Competitive Overview
Marketing Plan
Much money are you going to spend
How are you going to reach your audience
B2C: Web, mobile, Facebook, print, SEO/SEM
B2B: trade magazines, shows
B2B2C: white label
Customers & Partners
B2B: who has bought your product? LOI?
Good strategic partners are a resounding endorsement
Expedited reach: Apple, android, portals, trade
organizations,
Product Roadmap & Milestones
Where are you on the path: pre-launch, launch, post-
launch
Time horizon for next 12 months
What have you accomplished to demonstrate value
Regulations
This is the big differentiator from other industries
Snapshot of the regulatory overview
Challenges/opportunities
Financial Projections
If you don’t know excel, get help…
Top down vs. bottom up
Key performance indicators: Revenue
Expenses
Eye-ball top down (what % of market)
Scenario analysis
Too small? Too aggressive?
Capital Raise
How much you are raising (range)
How much have your raised to date
Last round valuation (rationale for step up)
How long it will last you (min 18 months)
Notable investors to date
Ideal timing of closing
Use of Proceeds
Target valuation? (discussion point)
Exit strategy? (discussion point)
Investment Considerations
Take the lead! Offer them up
Don’t make investors hunt for them
Make sure you have a well thought out explanation
Turn the problem into an asset
Summary
The market opportunity
Your solution/USP
Competitive position
Experienced management team
Scalable financial model
Exit?
The Business Plan (Word)
Verbal explanation of the PowerPoint deck
2-pager
Introduction to investors
Compact view
Executive Summary
5-10 pages
Full Blown Business Plan?
50 pages
Focus, better understand competition
Risk: out of date
Best written in reverse order
Master Buzzword Accumulator
Market leading
Next generation
Scalable model
Best of breed
Experienced management
Sustainable competitive advantage
1st mover advantage
Paradigm shift
Mobile 1st
Modular platform
Competitive Barriers to Entry
Fragmented market
Calculated risk
Financial Forecasts (Excel)
All Financials statements must tie together
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Three or five years, by month
Tie into historical performance
Financial Forecasts (Excel)
Prove the opportunity is big enough and scalable
Demonstrate the opportunity is NOW
First year of profit in year 4?
Make sure the model is easy to perform scenario analysis
E.g. inputs are clearly marked from outputs (blue)
Make sure you account for cash flow delays
Know exactly how long your cash will get you
Things take longer then expected
Don’t under estimate the regulatory expenses
Key Performance Indicators
Revenue
B2C: start with marketing, conversion, sign ups, funding, segmentation, rev/mo,
churn, reactivation
B2B: new customers, average spend, segmentation, churn
Expenses
Variable vs fixed
Capitalized vs depreciated
Focus on headcount growth (hi % of expenses)
Parting Thoughts of Capital Raising
Never start too soon
Too much dilution?
Raise capital on the dream not on the reality
Bulls, bears, pigs – don’t get slaughtered….
Don’t cheap out on quality advisors
They pay off in the long run….
Thank You!
Melissa Blau
Director, iGaming Capital
CFO, FastFantasy