getting behind the perfect pitch - harvard innovation lab workshop

Harvard innovation lab : Michael J Skok : Startup Secrets : Perfect Pitch

Hi

START UP SECRETS

MICHAEL J SKOK

An insider’s guide to unfair competitive advantage

Hi Harvard innovation lab

Getting behind the Perfect Pitch

twitter: @mjskok mjskok.com

North Bridge Venture Partners


Hi

My Agenda (for this workshop)

• Checklist for a pitch • Selective drill down• Get behind the pitch• Q&A

• NOT how to give your pitch• … a story

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Your Agenda• What are you going to cover ?

– Example:• Team• Business Overview• Market Opportunity• Value Proposition• Go To Market plan• Business Model• Financials

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People


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Team• Founders• Management

• Board• Advisors

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Team - Founders – What led you to this opportunity?

– What was your specific insight?

– How are you uniquely advantaged to build this business?– Relevant life experiences ?– Domain expertise gained?

– Teaming– How do you know each other?– Results of having worked together?

– TBH: Who else is needed on the team?

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Team - Management• Management

– Previous companies, positions

• Achievements – $ of value built– $$ Exits

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NoteFor a more complete discussion of this section, see the presentation at www.mjskok.com on “Company Formation ”

http://mjskok.com/resource/company-formation

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http://www.mjskok.com/



Orientation


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Business overview

“We do xx for yy by uniquely zz”

Keep it short and sweet for context and orientation onlyGet the audience wanting more (this should be consistent with your value proposition and

positioning)

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Problem?


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Problem statement

What problem are you solving?

(uniquely well, for who?)

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Market opportunity


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Market opportunity

• Business Pain

• Technology Need

Urgency: Why NOW ?

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Value Proposition


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Value proposition / solution

• How you address the pain / need?

• Your Product / Service…– What’s unique & defensible about it?– Why is it a breakthrough?– How is it compelling?

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BeforeAfter


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Value Proposition

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Before

After

Acute Pain

Absolute Joy

Vitamin vs. Penicillin


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“Gain/Pain ratio”

The gain delivered to the customervs.

The pain and cost for the customer to adopt

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Gain Pain


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“Gain/Pain ratio”

> 10 to overcomeInertia,

RISK

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Gain

Pain

>10

Inertia,RISK


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NoteFor a more complete discussion see the

presentation on“Building a Compelling Value Proposition” on

www.mjskok.com

Or read this article on VentureBeat

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http://venturebeat.com/2012/04/28/killer-value-proposition/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+Venturebeat+(VentureBeat)


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Examples, case studies• PROOF of what you do uniquely well

• Articulate from customer viewpoint – Tangible benefits

• Easily measured ROI?• Short Payback period?

• Articulate from your viewpoint– How repeatable, scalable it is (leads up to how you will make money from it later)

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Vision & Mission• How the market will evolve?

• How will you will lead it?

• What is your mission?

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If you’re not early with a vision, you’re probably too late


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Where does it all fit? Building an enduring company:

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Vision(Market)

StartupRoadmap

Enduring Company

Value Proposition

PeopleTeam

Execution(GOSPA)

Cultural Consistency


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What is the roadmap to achieving your mission?

• Market evolution & drivers• Key milestones to address the evolution


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Market Sizing


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Top Down


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Bottom Up


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Market sizing• Total available market – top down

– Quote sources like IDC, Gartner, Forrester

• Addressable market – bottom up– Clarify basis

• Growth– Drivers

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Competition


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Competition• Unique differentiation

– Not just technology

• Barriers to entry– Rewind, repeat: not necessarily just technology!

• What is impenetrable, sustainable?– IP, patents, network, data etc

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Positioning 2x2Whatever sets you up… for a unique white space

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High

HighLow

Low

b

c

d

{whitespace}

Bubble sizing for relative size of

competitors

The choice of axes is critical

Define real BARRIERS

To entry into each segment

a


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Go to Market


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Go To Marketexample highlights:

• Marketing Plan– Segmentation, targeting, personification– Marketing & Sales cycle– Inbound / Outbound

• Sales Plan– Inside / outside pre-sales and sales– Direct / indirect channels & distribution– Services and or product

… in sync with business model

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Go To Market

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Awareness

Interest

Understanding

Engagement

Trial

Purchase

Sales Plan

Marketing Plan


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Note!• For a more complete discussion of this area –

see the presentation at www.mjskok.com on “Going To Market”

http://www.mjskok.com/resource/startup-secrets-going-market

Michael Skok

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Business Model: How do you make money?

What is your model for

• Creating• Delivering • Harnessing

VALUE?

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Business Model: Examples:

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Your Revenue streams…

• How do they align with customer’s interests?• Do they encourage partners?


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Note:For a more complete discussion of this area see the presentation at www.mjskok.com on “ Game Changing Business Models”

http://www.mjskok.com/resource/startup-secrets-game-changing-business-

models

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http://www.mjskok.com/resource/startup-secrets-game-changing-business-models




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Numbers


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Assumptions, Milestones & Metrics are more important than the spreadsheet!

E.G.

• Key hires• Product beta, ship• First customers• Channel partners• Etc…


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Show me the money!

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Financials• P&L, Cash Flow

– One year by quarter minimum– Plus annual up to 5 years thereafter, highlighting

– Cash flow positive– Breakeven

• Minimum suggested information / detail as needed for the above– Headcount– Bookings– Revenue

• May need to break out things like Services depending on your business– Gross Margin– Expenses

• Major categories like R&D, Sales, Marketing, G&A shown as needed– Profit/Loss– Cash

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Realistic optimists?

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??!


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Cash raise• Use of proceeds falls out of Financials

• Typically 18 months of runway

• Highlight key milestones that would set up for next round

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Summary• Why this is a great investment ?• Why do you have unfair competitive

advantage?

Recap on what you said you’d cover in your agenda, making it obvious why this is a great investment and why your are advantaged to succeed…

At North Bridge we look to invest in uniquely qualified teams going after large new markets by solving significantly painful problems with disruptive and defensible new ways to build and deliver value. IE “Game-Changers”

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Backup slides• As needed for the type of presentation you’re

doing, or leave behinds you feel will enable the right assessment of your business

A typical mistake of entrepreneurs is to cram too much into one presentation. Decide what your call to action is. If it is to gain some follow on commitment to dig in on your opportunity for example, then leave out the material that will come in that follow on meeting. Only present what you need to drive action, and no more. If anything leave your audience wanting more.

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Cap Table (as appropriate)

• Major elements, summarizing:– Existing investors %– Founders %– Existing team %– Remaining option pool %

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Exit potential (only if appropriate)

• Independent beyond IPO is the ideal

• Potential acquirers– Their motivations

• Recent transactions in the space– $ paid and valuations basis

• Comparable valuations for private / public cos– Data for these like revenues, growth rates, market

cap

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As needed for drill down– Examples

• Financial assumptions• Screenshots of products• Customer testimonials (if not already worked into

the pitch as proof points)• Market data backup

… whatever puts you in command of your audience for Q&A

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Video from Great Wall

Video from the story woven throughout this presentation

can be found by

CLICKING HERE

http://vimeo.com/mjskok/review/41055369/5efd3bd891

Next steps?


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End Note

Most of the value of this presentation is in the talk track onwww.mjskok.com in the resource http://mjskok.com/resource/getting-behind-perfect-pitch– Comments and questions are welcome on the

site.– Other notes are also available in Slideshare

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http://mjskok.com/resource/getting-behind-perfect-pitch




Hi

Other tips and Resources• As this pitch was NOT intended to help on HOW to

present, here are a few ideas on that…

• Presenter guidelines– Don’t read your pitch – present it to us, authentically

• Get handouts ready in advance if you want your audience to have backup

– Make a point only once unless you specifically want to reinforce it

– Proof is more credible than talk – wherever possible back your points up with references to customers, or partners or other validation

• Recommended reading– www.slideology.com and the book by Nancy Duarte– Presentation Zen by Garr Reynolds

http://www.slideology.com/


Hi

Thank you…

Find Me Online

mjskok.com

@mjskok

/mjskok

linkedin.com/in/mjskok

bit.ly/mjskok-google

bit.ly/mjskok-youtube

[email protected]


Hi

START UP SECRETS

MICHAEL J SKOK

An insider’s guide to unfair competitive advantage

Hi Harvard innovation lab

Getting behind the Perfect Pitch

twitter: @mjskok mjskok.com

North Bridge Venture Partners