teams for effective innovation - the marshmallow challenge!
TRANSCRIPT
Summary
What is an elevator pitch?Pitch frameworksThe audience for the pitchThe pitch conversationThe pitch deck
What is an elevator pitch?
“So what do you do?”
An elevator pitch is a short summary used to quickly and simply define a profession, product, service, organization, or event and its value proposition
Possible to deliver in the time of an elevator ride, 30 s – 2 mins
Origin widely credited to Vanity Fair editors Ilene Rosenzweig and Michael Caruso
Short, sharp and Persuasive
Pitch frameworks
Situation – Impact – Resolution
The One Liner
Wow – How Now
The Question Pitch
Daniel Pink’s 21st century pitches
Pixar pitch
Perfect it, then Practice, Practice, Practice
Situation – Impact – Resolution
Situation (conflict). Illustrate the pain current customers are facing
Impact (escalate conflict) – Explain the impact of that situation.
How is this affecting profits, market share, customer loyalty, or anything else the prospect is concerned about losing?
Resolution – Explain how you solve the problem. Focus on benefits, not products and services.
Generic Framework
We solve [insert problem situation] by providing [insert advantage],to help [insert target] accomplish [insert target’s goal]
Depending on the stage you’ve reached, you might follow it up with a second sentence about your business model: We make money by charging [customers] to get [benefit]
The one line elevator pitch
Your product / vision , your company purpose
Keep it around 30 seconds and under 150 words
Make it easy to understand and avoid jargon
Create a statement, question, or fact that piques their interest – what’s in it for them?
Make it convincing and engaging
We are X for Y (assuming X is attractive and Y is a big enough opportunity!) Example
AngelList (https://angel.co ) is where the world meets startups like ABCStartUp.com
www.scripted.com is a marketplace for businesses to hire freelance writers
Strategic Scientific Consulting helps scientists build successful businesses
Me? I build people’s capacity to achieve
Wow – How - Now
WOW. Say something intriguing (even puzzling) that will make the other person want to hear more.
A creative summary of what you do that demands some clarification.
Ideally, the prospect’s reaction will be to ask “What does that mean?”
HOW. Answer the stated (or unspoken) question and explain exactly what you do.
NOW. Shift into storytelling mode, giving a concrete example of a current customer.
The key phrase is “Now, for example…”
Generic framework
I/we work with (insert target market)… who are (insert feeling word)… with (insert problem/issue you solve)
I/we work with /help (target market)… who want to (describe what your customers want)
Example
Brian Walter (http://brianwalter.com/why-brian) a communicator, who makes messages go verbally viral
Prospect: So, what do you do?
Me: I build PowerPoint muscles.
Prospect: Huh?
Me: I teach people how to use PowerPoint more effectively in business.
Now, for instance, I’m working with a global consulting firm to train all their senior consultants to give better sales presentations so they can close more business.
The Question Pitch
“Have you ever purchased an ABC online? {wait for answer} Well, my company is ABC.com. We are the number one,
national distributor for all ABCs, online. We sell every type of ABC available as well as provide very competitive service pricing. We are the leading, online ABC provider in the country/region/world
Use this if your arguments are strong https://vimeo.com/66508882
Example
Pink’s 21st Century Pitches
The One-Word Pitch - Write a 50 word pitch. Reduce it to 25. Then to 6. One of these is almost certainly your one-word pitch
The Question Pitch - Use this if your arguments are strong https://vimeo.com/66508882
The Rhyming Pitch https://vimeo.com/69775579 - Try http://www.rhymezone.com
The Subject Line Pitch - Review subject lines of the last 20 e-mail messages you sent. How many appeal to utility or curiosity. If <10, re-write each that fails the test. https://vimeo.com/67907476
The Twitter Pitch - The best pitches are short, sweet, and easy to retweet, circa 120 characters
The Pixar Pitch – Storyboard approach
Six 21st Century Pitches by Daniel Pink
The Pixar Pitch
Once upon a time ___________________________.
Every day, _________________________________.
One day ___________________________________.
Because of that, _____________________________.
Because of that, _____________________________.
Until finally,_________________________________.
The Pixar Pitch - Read all twenty-two of former Pixar story artist Emma Coats’s story rules: http://www.pixartouchbook.com/blog/2011/5/15/pixar-story-rules-one-version.html
Advice from the best "They're able to articulate the opportunity in 90 seconds or less."
While "Shark Tank" pitch segments average 10 minutes in length, the unedited pitches can last an hour. But if an entrepreneur can't convince at least one of the investors within a minute and a half that they'll be missing out on a fantastic chance to make a ton of money, then all the time in the world won't be enough to win them over.
"They're able to explain why they are the right people to execute the business plan."
A great product isn't enough. The entrepreneurs need to convince the investors that no one else understands the product or its customers better, and that their passion for the business can't be matched.
"They know their numbers."
"I've seen so many deals fall apart after the first two have been achieved, and then you ask questions about anything to do with the numbers side and if they don't know the answer, they just evaporate," O'Leary says. If an entrepreneur suggests that an investor can help teach them about their industry's market size and their product's ideal margins, then it's game over. "You lose confidence immediately when someone doesn't understand the numbers."
Example: AirBnB
http://www.businessinsider.com/airbnb-a-13-billion-dollar-startups-first-ever-pitch-deck-2011-9#-1
Airbnb is a website for people to rent out lodging
Example: Foursquare
http://www.businessinsider.com/this-is-the-first-pitch-deck-foursquare-ever-showed-investors-2011-12?op=1
Foursquare is a local search and discovery service mobile app which provides a personalised local search experience for its users
Example Pitch decks
http://www.pitchenvy.com/gallery/mixpanel-pitch-deck/
https://mixpanel.com/blog/2014/12/18/open-sourcing-our-pitch-deck-that-helped-us-get-our-865m-valuation
http://onstartups.com/tabid/3339/bid/98034/The-Pitch-Deck-We-Used-To-Raise-500-000-For-Our-Startup.aspx
http://www.slideshare.net/Bufferapp/buffer-seedrounddeck
http://www.slideshare.net/stijnvanlieshout1/pitch-deck-betpitch-a-fantasy-football-betting-platform-35403394
https://www.mint.com/ http://www.slideshare.net/PitchDeckCoach/mint-pitch-deck-46465532
http://8fit.com/story/seed-funding/ https://speakerdeck.com/micho/8fit-pitch-deck
http://www.slideshare.net/benjaminevans/walletkitslidedeckpdf-130206104240phpapp02-18147368
Know Your Audience
Who you are meeting with?
What is the investor’s focus?
Are there related investments?
How much time do you have?
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These influence your deck, the discussion and the questions you’ll likely be asked
Conversation with Slides
The deck is important. Work on it & get it right!But the conversation is more importantBudget your timeAllow for discussion alongside each slide10-15 slides – no more!
Shared Slides have no voiceover
Your deck will be shared (i.e. among partnership)Therefore
Must be equally compelling with/without a voiceover
The stand alone slide pack Deck should tell its own story Do not rely on transitions, animations, builds, intricate
slides Make the file size manageable PDF or secure URL are alternatives to PPT
Content
For early stage companies, it’s all about product And the best mark of product is market validation Beware the demo - Demos are great… but remember
these four rules:Be careful of timeDon’t get lost in productHave backup if (when!) something goes wrongGive even weight to product & traction / data
Pitch Structure
The Big Idea
Why you?
The Current Problem
Your Solution. Why Now?
Traction and Validation
What’s the Future?
The Ask
1-2 slides
1 slide
2-3 slides
3-5 slides
2-4 slides
1-2 slides
1 slide
The Right Team
Why are you the right team for the problem?
Include management team and advisors, investors
Include bios with key, relevant experience
Outline division of responsibilities
Think an expanded team profile
http://angel.co/visually
Why Your Solution Now?
The current problem Customer / consumer pains?
How are they solving today?
Your solution How will they solve with you?
How is it different than market?
Why now? Why is solution possible today?
Why is it right for today, tomorrow?
How big is the market?
How big can you be?
Know your numbers!
What value are you creating?
Be realistic!
Traction and Validation
Quantitative evidence of market demand Proof that somebody wants your product It communicate momentum in market adoption
Most convincing order Profitability Revenues Active users Registered users Engagement Partnerships/clients Traffic
Investors focus on the 3 specific items So every pitch deck needs to answer 3 questions
Does it look like your customer base is growing?
If not, then you are dead in the water.
Communicating customer traction to prospective investors is hard
Investors have limited time so you need to graphically depict that you are growing in as few words as possible
Do your customers like your product?
you need to demonstrate that your product is getting “stickier”, and the usage patterns of your customers are getting more favourable ie there is traction
The reason you need to demonstrate that your product is sticky is simple: acquiring new customers is MUCH more expensive than getting existing customers to pay for your product again.
And happy customers are also your best salespeople -- if you are able to successfully demonstrate that your existing customer base is happy, that in and of itself is a low-cost sales channel
Does it look like your business/product can actually scale?
Remember that venture investors are not interested in ordinary returns -- that is why they are in venture capital and not in the S&P 500.
If you are not able to demonstrate a clear path to $100M within five years, your company is not a good candidate for venture capital.
You will constantly get asked about scalability
Ready for zero product traction
Traction can be shown through acquisition, usage, retention, etc.
ReadyForZero showed user activity as measure of product efficacy - Users pay-off debt 2x faster than non-users
http://www.slideshare.net/shannonmcnay/readyforzero
The Future
You have outlined team, product and success to-date
Now how does this tie into the big vision and the fundraising?
What are the next 12-24 months of:
Product
People
Performance
Finances
The Ask
Essential, yet commonly overlookedYou must ask for what you want!
What size investment are you looking for? How long does it get you? How will you spend it? What are goals before raising the next round? How else can the investor(s) help?
Summary
What is an elevator pitch?Pitch frameworksThe audience for the pitchThe pitch conversationThe pitch deck
Fast Company Launched in November 1995 by Alan Webber and Bill
Taylor, two former Harvard Business Review editors.
Fast Companyis the world's leading progressive business media brand, with a unique editorial focus on innovation in technology, ethonomics (ethical economics), leadership, and design. Written for, by, and about the most progressive business leaders, Fast Company and FastCompany.com inspire readers and users to think beyond traditional boundaries, lead conversations, and create the future of business.
Fast Company magazine was founded on a single premise: A global revolution was changing business, and business was changing the world. Discarding the old rules of business, Fast Company set out to chronicle how changing companies create and compete, to highlight new business practices, and to showcase the teams and individuals who are inventing the future and reinventing business.