the pitch - entrepreneurship 101
TRANSCRIPT
The Artful Science of Pitching™ May 2015 22 © 2012-‐2015 Frank Erschen, Inc.
What investors need to know from your pitch
What You Know About Your Business Elevat
or pitch
Product features & benefits How my product works Really big market size numbers
Really impressive
hockey sbck curves
Who we are
Our ask
Compebbon (or lack of) and amazing differenbabon
The problems we solve
The Artful Science of Pitching™ May 2015 23 © 2012-‐2015 Frank Erschen, Inc.
P?
??
What investors need to know from your pitch
What You Know About Your Business Elevat
or pitch
Product features & benefits How my product works Really big market size numbers
Really impressive
hockey sbck curves
Who we are
Our ask
Compebbon (or lack of) and amazing differenbabon
The problems we solve
The Artful Science of Pitching™ May 2015 24 © 2012-‐2015 Frank Erschen, Inc.
is the “story” you tell that will excite an investor so that they want
to learn more?
Baseline Story (with “accordion” properbes)
13 topics 13-‐16 slides
12 minutes (+/-‐)
Investable Story …
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™
1 – Introducbon 2 – Elevator Pitch 3 – Problem 4 – Problem / Market Size 5 – Solubon 6 – Why Now
7 – Go To Market (GTM)
8 – Compebbon / Differenbabon 9 – Revenue Model 10 – Projecbons 11 – Team 12 – Financing to Date / Ask /
Use of Proceeds 13 – Summary
Get Interest
Sell
Close or
Lose
Provide background informabon to capture interest
Convince investors that your idea is an invesbble business; you’re selling “the next meebng”
Round out your GTM plans with the rest of the story; here, you will either close the next meebng or lose their interest
The Artful Science of Pitching™
Objecbve of Your Pitch
May 2015
A1racbng, negobabng and closing investment is a process
26
The Artful Science of Pitching™
The Artful Science of Pitching™ May 2015 27 © 2012-‐2015 Frank Erschen, Inc.
1. Title page
Investable Story
First impressions count
Introduce your company, yourself, and why you’re pitching P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 28 © 2012-‐2015 Frank Erschen, Inc.
1. Title page – first impressions!
2. Elevator pitch Investable Story Keep it concise
(short sentences, watch syllables) Be clear & make it compelling
Pracbce PEGS:
Have them ready & Prac7ced (them: 15, 45, 90 seconds)
Show Energy and passion Goal-‐target* your audience Tell an understandable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 29
Elevator Pitch – Example O We have developed an opbmally-‐sized,
open, and standards compliant operabng system for the class A-‐compabble
and class B micro-‐processor units found in low-‐end intelligent-‐enabled appliances.
© 2012-‐2015 Frank Erschen, Inc.
The Artful Science of Pitching™ May 2015 30
Elevator Pitch – Example O We have developed an opbmally-‐sized,
open, and standards compliant operabng system for the class A-‐compabble
and class B micro-‐processor units found in low-‐end intelligent-‐enabled appliances.
P I’m Andy Preneur, founder of SmartCPU. We’ve developed a
best-‐in-‐class operabng system for smart devices like your toaster. We cost less and leave more room for the apps that make your toaster smart. We’re proven and I need investment
to grow.
© 2012-‐2015 Frank Erschen, Inc.
The Artful Science of Pitching™ May 2015 31 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve Investable Story
P?
??
What investors need to know from your pitch
“Problem” Sets Deeper Context
Size of Problem = Business Opportunity Solubon
Value Proposibon
Go To Market
The Artful Science of Pitching™ May 2015 32 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve Investable Story
P?
??
What investors need to know from your pitch
If your aspirabon is bigger than your current focus,
show both
Bigger focus = Business potenbal Current focus = investable story
The Artful Science of Pitching™ May 2015 33 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Really big market size numbers
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 34 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Really big market size numbers
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 35 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Really big Market size numbers that make sense
Investable Story
Defining Market Size
It’s less about large numbers, more about logic and reasonableness
Link it to the problem you solve
Top down analysis:
check census, StatsCan, US Bureau of Labor stats, ...
Bo1om up analysis: market intelligence research, original research, …
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 36 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Product features & benefits How my product works
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 37 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Product features & benefits How my product works
5. Our product … and why people will buy it
Investable Story
P?
??
What investors need to know from your pitch
Product value proposibon
Context: Your product is one FEATURE of your business!
IP*
How product solves the problem
The Artful Science of Pitching™ May 2015 38 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Our product … and why people will buy it
6. Why Now?
Investable Story
3rd party research Original research
Why is now the right bme?
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 39 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Our product … and why people will buy it
6. Why Now?
7. How/when/where we will sell it (“go to market”)
Investable Story
Everything up to now is background
P?
??
What investors need to know from your pitch
Everything ater this is
closing the sale (aka next mtg)
GTM is where you are
selling the “next meebng”
The Artful Science of Pitching™
VEGaS
May 2015 40
Validabon
Entry
Grow
Scale
bme
$ # etc
Graphically explains your Go To Market strategy & plan
If appropriate dedicate a page to a stage
© 2012-‐2015 Frank Erschen, Inc.
The Artful Science of Pitching™ May 2015 41 © 2012-‐2015 Frank Erschen, Inc.
Investable Story
P?
??
What investors need to know from your pitch
IP* Present a fair assessment of the
compebbve landscape and your
differenbabon
Never assume you have no compebbon. Focus on what makes your product great.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Our product … and why people will buy it
6. Why Now?
7. How/when/where we will sell it (“go to market”)
8. Compebbon (or lack of) & Differenbabon Amazing differenbabon
The Artful Science of Pitching™ May 2015 42 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Our product … and why people will buy it
6. Why Now?
7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon
9. Really impressive hockey sbck curves
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 43 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch
3. The problems we solve
4. Market size numbers that make sense
5. Our product … and why people will buy it
6. Why Now?
7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon
Really impressive hockey sbck curves 9. Pricing / revenue model
10. Revenue & cost curves that make sense
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 44 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch 3. The problems we solve
4. Market size numbers that make sense 5. Our product … and why people will buy it
6. Why Now? 7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon
Investable Story
9. Revenue model 10. Projecbons u
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™
t0 t1
#1
#0
If you want to replicate someone else’s sales pa1ern, check how much they raised to support the pa1ern!
May 2015 45 © 2012-‐2015 Frank Erschen, Inc.
Investable Story 2. Elevator pitch
3. The problems we solve 4. Market size numbers that make sense
5. Our product … and why people will buy it 6. Why Now?
7. How/when/where we will sell it (“go to market”) 8. Compebbon & Differenbabon
P?
??
What investors need to know from your pitch
9. Revenue model 10. Projecbons u
The Artful Science of Pitching™ May 2015 46 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch 3. The problems we solve
4. Market size numbers that make sense 5. Our product … and why people will buy it
6. Why Now? 7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon 9. Pricing / revenue model
10. Revenue & cost curves that make sense 11. Who we are (credibility, comfort)
Investable Story
Relevant experience Photos
Advisors/Board
P?
??
What investors need to know from your pitch
…and Gaps!
The Artful Science of Pitching™ May 2015 47 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch 3. The problems we solve
4. Market size numbers that make sense 5. Our product … and why people will buy it
6. Why Now? 7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon 9. Pricing / revenue model
10. Revenue & cost curves that make sense 11. Who we are (credibility, comfort)
12. Our ask
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 48 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch 3. The problems we solve
4. Market size numbers that make sense 5. Our product … and why people will buy it
6. Why Now? 7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon 9. Pricing / revenue model
10. Revenue & cost curves that make sense 11. Who we are (credibility, comfort)
12. Previous funding, our ask, use of proceeds
Investable Story
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 49 © 2012-‐2015 Frank Erschen, Inc.
2. Elevator pitch 3. The problems we solve
4. Market size numbers that make sense 5. Our product … and why people will buy it
6. Why Now? 7. How/when/where we will sell it (“go to market”)
8. Compebbon & Differenbabon 9. Pricing / revenue model
10. Revenue & cost curves that make sense 11. Who we are (credibility, comfort)
12. Previous funding, our ask, use of proceeds 13. Summary
Investable Story
“The 3-‐4 things I want you to remember from my pitch are …”
P?
??
What investors need to know from your pitch
The Artful Science of Pitching™ May 2015 50
Title Page Elevator pitch
Problem We Solve Size of Problem Product / Solubon
Why Now? Go To Market
Compebbon & Differenbabon Revenue Model Projecbons
Team Financing / Ask / Use of Proceeds
Summary
© 2012-‐2015 Frank Erschen, Inc.
Pitch Topics and Flow
12 minutes, 13-‐16 slides
P
P
What investors need to know from your pitch
“Accordion” Pitch
Stretch and Squeeze as needed
The Artful Science of Pitching™ May 2015 51
Title Page
Elevator pitch
Problem We Solve
Size of Problem
Product / Solubon
Why Now?
Go To Market
Compebbon & Differenbabon
Revenue Model
Projecbons
Team
Financing / Ask / Use of Funds
Summary
© 2012-‐2015 Frank Erschen, Inc.
Customer Relabonships
Key Partners
Key Acbvibes
Channels
Customer Segments
Revenue Streams
Cost Structure Key Resources
Mapping to Business Model Canvas
Value Proposibons
The Artful Science
of Pitching™
The Artful Science of Pitching™ October 2014 52
Value Proposibon
3 Problem Solved or Opportunity Created 7 Go To Market
Cost Structure 9 Revenue Model 10 ProjecWons
* Key Partners 7 Go To Market
† Problem 3 Problem Solved or Opportunity Created
4 Market Size
* Key Acbvibes
7 Go To Market
† Solubon
3 SoluWon / Product Customer Segments 4 Market Size 7 Go To Market * Key Resources
11 Team 12 Financing to Date, Ask, Use of Proceeds
† Key Metrics 7 Go To Market 10 ProjecWons
Revenue Streams 9 Revenue Model 10 ProjecWons
* Customer Relabonships 7 Go To Market
† Unfair
Advantage 11 CompeWWon / DifferenWaWon
Channels 7 Go To Market
*Green is Business Model Canvas †Orange is Lean Canvas Black is Both Small text is where Canvas element is used in The Ar^ul Science of Pitching framework
Mapping Aryul Science to Business Model & Lean Canvas
Business Model Canvas
Lean Canvas
(Alexander Osterwalder & Yves Pigneur) (Ash Maurya)
The Artful Science of Pitching™ May 2015
Pitch Framework Common Pitch Risks
Title page Intro company, you, purpose of pitch Poor first impression
Elevator pitch 15 second: establish your space Not crisp / isn’t capbvabng
Problem “The problem we solve is …” Too esoteric / not focused
Market size How big is this problem/opportunity? Irrelevant / size over substance
Solu7on “The way we fix this problem is …” Delivered like a product sell
Why Now? Why is now the right bme? Not convincing
Go To Market How you will build the business … Incomplete / not defensible
Compe77on/Differen7a7on “We’re be1er because …” Not convincing / incomplete research
Revenue Model “The way we make money is …” Not clear, not enough margin
Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported
Team Convey credibility … admit gaps Incomplete / don’t recognize gaps
Financing / Ask / UOP Past financing, current ask, use of $ Incomplete / asking for too much/li1le
Summary “The 3 things to remember are …” Oten not done
53
The Artful Science of Pitching™
© 2012-‐2015 Frank Erschen, Inc.
The Artful Science of Pitching™ May 2015
Pitch Framework Common Pitch Risks
Title page Intro company, you, purpose of pitch Poor first impression
Elevator pitch 15 second: establish your space Not crisp / isn’t capbvabng *
Problem “The problem we solve is …” Too esoteric / not focused *
Market size How big is this problem/opportunity? Irrelevant / size over substance *
Solu7on “The way we fix this problem is …” Delivered like a product sell *
Why Now? Why is now the right bme? Not convincing
Go To Market How you will build the business … Incomplete / not defensible
Compe77on/Differen7a7on “We’re be1er because …” Not convincing / incomplete research
Revenue Model “The way we make money is …” Not clear, not enough margin
Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported
Team Convey credibility … admit gaps Incomplete / don’t recognize gaps
Financing / Ask / UOP Past financing, current ask, use of $ Incomplete / asking for too much/li1le
Summary “The 3 things to remember are …” Oten not done
54
The Artful Science of Pitching™
© 2012-‐2015 Frank Erschen, Inc.
The Artful Science of Pitching™ May 2015
Pitch Framework Common Pitch Risks
Title page Intro company, you, purpose of pitch Poor first impression
Elevator pitch 15 second: establish your space Not crisp / isn’t capbvabng
Problem “The problem we solve is …” Too esoteric / not focused
Market size How big is this problem/opportunity? Irrelevant / size over substance
Solu7on “The way we fix this problem is …” Delivered like a product sell
Why Now? Why is now the right bme? Not convincing
Go To Market How you will build the business … Incomplete / not defensible *
Compe77on/Differen7a7on “We’re be1er because …” Not convincing / incomplete research
Revenue Model “The way we make money is …” Not clear, not enough margin
Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported *
Team Convey credibility … admit gaps Incomplete / don’t recognize gaps
Financing / Ask / UOP Past financing, current ask, use of $ Incomplete / asking for too much/li1le *
Summary “The 3 things to remember are …” Oten not done
55
The Artful Science of Pitching™
© 2012-‐2015 Frank Erschen, Inc.
The Artful Science of Pitching™ May 2015
Pitch Framework Common Pitch Risks
Title page Intro company, you, purpose of pitch Poor first impression
Elevator pitch 15 second: establish your space Not crisp / isn’t capbvabng
Problem “The problem we solve is …” Too esoteric / not focused
Market size How big is this problem/opportunity? Irrelevant / size over substance *
Solu7on “The way we fix this problem is …” Delivered like a product sell
Why Now? Why is now the right bme? Not convincing
Go To Market How you will build the business … Incomplete / not defensible
Compe77on/Differen7a7on “We’re be1er because …” Not convincing / incomplete research
Revenue Model “The way we make money is …” Not clear, not enough margin
Projec7ons 6-‐8 quarters + 2-‐3 years Unrealisbc / not supported *
Team Convey credibility … admit gaps Incomplete / don’t recognize gaps
Financing / Ask / UOP Past financing, current ask, use of $ Incomplete / asking for too much/li1le
Summary “The 3 things to remember are …” Oten not done
56
The Artful Science of Pitching™
© 2012-‐2015 Frank Erschen, Inc.
MARKETING PITCH • Less Jargon, • Grandma can understand, • Media, • About the company and product. • NO ASK