The Keys to Raising Money for Your Venture
The Keys to Raising Money for Your Venture. Presented By Stu Benton. Where Do You Get The Money?. Start Up or Seed Capital ( Less than $1 million) Friends and family Angel investors Industry partners Venture Capital Funds Product in market Paying customers Boot strap.
The Keys to Raising Money for Your Venture
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Presentation Transcript
The Keys to Raising Money for Your Venture Presented By Stu Benton Soundview Partners
Where Do You Get The Money? • Start Up or Seed Capital ( Less than $1 million) • Friends and family • Angel investors • Industry partners • Venture Capital Funds • Product in market • Paying customers • Boot strap Soundview Partners
The Five Key Factors Investors Look For • People • People • People • Market • Product Soundview Partners
The Three Risk Areas Investors Consider • Management risk • Market risk • Technology risk Soundview Partners
The Best Technology NEVER Wins!!The Best Marketing Will Win!! Soundview Partners
You Need Three Key Things to Ask For Money • Tell The Story Of Your Company In Increasing Detail • Telephone Pitch [Elevator Pitch] • Executive Summary • Team Presentation Soundview Partners
The Telephone Pitch • One to two minutes max • Get foot in the door • Four Key Items • This is the problem • This is how we solve it • This is how we’re different • This is who we solve it for Soundview Partners
The Executive Summary • One Page • Clear, concise, brief, no buzz words • Your mother should understand it • Get VCs to let you in the door Soundview Partners
The Executive Summary • Opening sentence: crystal clear statement of what your company does • The compelling need • How your company fills the need • The value proposition • Cost savings • Improved performance • Your competitive advantage Soundview Partners
The Executive Summary • Customers/Prospects • Market size and industry forces • Briefly explain how company and technology work • Project into the future Soundview Partners
Presentation Guidelines • 15-20 slides • Plain background, logo on all slides • Slides are an outline • Short words and phrases…no jargon • 7 by 7 rule • No clipart,animation & etc…appear only • Slides or speaker Soundview Partners
Objective Of The Presentation • To get the investor interested enough to go the next step…..due diligence Soundview Partners
What is The Presentation? • Bare bones version of business model • What is the business problem you solve? • What is the value proposition? • Who are your customers? • Who is your competition? • How do you differentiate yourself? • How do you make money? • How much money? Soundview Partners
The First Four Slides Make Or Break Your Presentation • Announce the problem and how you solve it • Slide 1: Title Slide ….Introduce yourself and team • Slide 2: What’s the compelling need • Slide 3: How you satisfy this need • Slide 4: What’s the size of the market Soundview Partners
Slide 2: Compelling Need/Business Problem • What is the problem • How significant is it Soundview Partners
Slide 3: How You Solve This Problem • Overview of how you solve this problem • Your value proposition.. • Cost Savings • More efficient • Actual customers/prospects…what they say Soundview Partners
Slide 4: The Market • How Big • How fast is it growing • Who are the customers Soundview Partners
Slide 5: Highlights of Your Company • Employees • Revenue size…if any • Products Status • Patents • Where is the company today Soundview Partners
Slide 6: Industry Trends • Industry forces [Drivers] • Serious • Sustainable • What this means for the future • How/why you exploit driving forces Soundview Partners
Slide 7: Product/Service Overview • Product families..beta..prototype • How do they work • Show & tell • Market focus • What is unique Soundview Partners
Slide 8: Your Competitive Advantage • How customers do things now • Drawbacks, problems • How impacts customers bottom line • Strategic problems Soundview Partners
Slide 9: How You Solve This Problem • Specifically how you solve the problem • Your value proposition…hard facts $,% • Cost savings • Performance • Customers/prospects • Use as examples…what are they doing • Get quotes Soundview Partners
Slide 10: Competition • Demonstrate complete understanding • Rational, objective and measurable argument • Who are they • Direct/Indirect • Potential • How do they compare • How are they doing • How does the market see them Soundview Partners
Slide 11: Your Competitive Advantages • Why you will win • Do differently • Why they can’t • Real advantages • Nine to twelve months time advantage Soundview Partners
Slide 12: The Future • Opportunities to leverage technology • New products • New Markets Soundview Partners
Slide 13: Financials • Quarterly sales and net income • Two Years, eight quarters • Show when breakeven • Assumptions..How derived Soundview Partners
Slide 14: Financials • Five year sales and income • By year • Assumptions • Logic behind #’s Soundview Partners
Slide 15: Financials • Financial Model • Table • %’s • Gross Margin • Sales Cost • G&A • Research & Development • Logic behind #’s Soundview Partners
Slide 16: Management Team • Present team & experience • Unfilled positions and timing • Advisory board & experience Soundview Partners
Slide 17: Summary • Key four points • What’s the problem • Here’s how we solve it • Here’s our advantage • Here’s the market we solve it for Soundview Partners
Slide 18: Ask for the Money • Here’s how much we need $3 million Soundview Partners
Two More Things You Need • List of references • Ten page business plan • Use presentation as outline • Leave behind Soundview Partners
Giving The Presentation • Practice, practice practice • You’re a team • Have all your facts • Get them asking questions • Get them on you side • Get their feedback • Follow up Soundview Partners
Buy This Book “Smartups” By Rob Ryan Founder of Ascend Communications Founder of Start-up Boot Camp Soundview Partners
