how to pitch my app to investors...what to put in your pitch deck 1. your company/ logo/ tagline 2....
TRANSCRIPT
How to Pitch my App to InvestorsGlenn Winokur, Managing Director, Healthbox
Session #: DL24, February 14, 2019
Raising money….
There is no definitive manual
#HIMSS19
Outline
• Why raise money• Understanding the investor mindset • When to raise money• How much to raise• Funding options • Pitch deck• Takeaways
Why Raise Money
• Should you even raise (traditional) venture money?
• When do you know you’re ready?
• Which investors should you target?
• How much time should you spend fundraising?
How Early Stage Investors Evaluate
• Feature, product, or company• Founding team• Market opportunity
Feature, Product or Company• How do people solve this problem today
– Role of incumbents– Complexity of ecosystem
• Solution waiting for a new funding model (aka how do you get paid?)• Abundance of existing apps 1
• “Make Something People Want” 2
– Validation = product/market fit• All of this is infinitely more complex in healthcare
1: SemanticConsulting.com, Can Innovation Make Healthcare Worse? 2: YCombinator
Founding Team
• Have they done this or something similar before• Uniquely qualified to solve this problem• Passion
– Is anybody/everybody working fulltime on this or moonlighting– Why do they care about this problem
Market Opportunity
• Size of initial target market• Obvious adjacent markets to expand into• Ultimate vision
When do you know you’re ready
• Runway timeline may force the decision
• Evidence of historical milestone accomplishment
• Product/market fit
Micah Rosenbloom @micahjay1 Seed stage investor at @fcollective.
Raising a series A before finding product market fit creates undue pressure on founders and often disappointment. Intellectual honestly on where a company truly is is among the hardest and most important aspects of being both founder and investor.
Product/Market Fit
“Founders should raise money when they have figured out what the market opportunity is and who the customer is, and when they have delivered a product that matches their needs and is being adopted at an interestingly rapid rate” 1
Product/Market Fit
1: Ycombinator
Product/Market Fit
• Product/market fit myths: 1
– Myth #1: Product/market fit is always a discrete, big bang event
– Myth #2: It’s patently obvious when you have product/market fit
– Myth #3: Once you achieve product/market fit, you can’t lose it
– Myth #4: Once you have product/market fit, you don’t have to sweat the competition
1: a16z.com, 12 Things about Product-Market Fit
How much to raise
• How many months of operation do you want to fund• What is a realistic valuation• What are possible funding sources
– Friends and family– Angels– Customers– VCs
Funding/Financing Options
• Convertible note / debt• SAFE• Equity• SBIR / NSF / NIH
What to Put in Your Pitch Deckseed round?
Via LinkedIn
What to Put in Your Pitch Deck
1. Your company/ logo/ tagline2. Your vision3. The problem4. The customer5. The solution6. The market you are addressing
7. Market landscape8. Current traction9. Business Model 10.Team11.Summary12.Fundraising
Via YCombinator
• What are your value expectations?
• Who is your competition?
• What is your protective moat?
• What would a likely exit look like? Who will acquire you and for how much?
• How much money will you need to raise in total over time?
Questions You Will Likely Receive
10.
2/28/201918
6.
7.
9.
8.
We’re not comfortable that the valuations you will receive fits our investment approach.
Oh, the EHR vendors will provide that functionality.
You’re too early for the market.
You’re too early for us.
We’re not comfortable the market is large enough.
Top Ten List
5.
2/28/201919
1.
2.
4.
3.
None…they ghost.
But what about Apple/Google/Amazon?
There is just too much overlap with “random company” in our portfolio.
I LOVE your deal, but I couldn't get my Partners over the hump.
We always want to make sure we can add value and you’re located too far away for us.
Top Ten List
Takeaways
• Fundraising is difficult• Customer validation (however best defined) is key• There is no definitive playbook
Thank You