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Costas AndriopoulosProfessor of Innovation and EntrepreneurshipCass Business Schoolcostas.andriopoulos.2@city.ac.uk@candriopoulos

Pitch me, baby!

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DocSend and Eisenmann, 2015

Raising money is difficult!

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Quiz time!

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VCs spend an average of ____ on reading pitch decks

A. 10 minutes, 44 secondsB. 3 minutes, 44 secondsC. 1 minute, 30 secondsD. 20 minutes, 30 seconds

DocSend and Eisenmann, 2015

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____ investors read the pitch decks from their mobile phones

A. 12%B. 25% C. 90%D. 75%

DocSend and Eisenmann, 2015

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In which page, do investors spend most of their time?

A. FinancialsB. SolutionC. TeamD. Market size

DocSend and Eisenmann, 2015

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DocSend and Eisenmann, 2015

Designing a successful seed deck

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The art of Pitching: Content• Begin with “the end”: Here is why you should invest in us

• Be brief – Why is it compelling? Why are you the best person to carry it out?

• Create and keep momentum!

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1. Company purpose - Define the company/business in a single declarative sentence

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Summarize the company’s business on the back of a business card

Sequoia Capital

High concept pitches

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Which movie is this?• It is jaws in space!

•A bus with a bomb!

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2. Problem - Describe the pain of the customer (How does the customer address the issue today?)

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3. Solution - Demonstrate your company’s value proposition to make the customer’s life better (provide cases)

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4. Why now? - Define current trends that make your solution possible

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5. Market size – Data/Stats on market size (massive), existing proof points, etc.

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5. Market size – Data/Stats on market size (massive), existing proof points, etc.

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6. Competition – List competitors

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7. Product – Description of your product (How does it work?), including key insights/differentiators, etc.

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8. Business model – Revenue model (different ways you will make money, could be short and/or long term)

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9. Traction – List current stats on usage, traction, etc. or plans for getting initial users

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10. Team – Who we are (Highlight relevant previous experiences and areas of ownership)

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11. Financial projections and Key metrics

• Include 3-5 years of financial projections

• Mention key & critical assumptions in your model of expenses, customer conversion, market penetration %

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12. Looking forward

• State how much Capital you are raising (e.g. Equity, Debt)

• Who are your existing & notable investors, if any?

• What are your key Use of Proceeds (as % of total raise)• Founder salaries• Sales & Marketing• New hires• Technology / Product or Service development• Capital expenses / equipment

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The art of Pitching: Delivery• Bring your passion

• Change people’s pulse

• Tell stories that sell (energy, compelling)

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There are two ways to influence people

(1) Using conventional rhetoric (ppt, statistics, facts and quotes from authorities), you may experience two problems: a) they are arguing with you in their headb) if you do succeed in persuading them, you have

done so only on an intellectual basis

(2) Uniting an idea with an emotion (you provide information but you also arouse your listener’s emotions and energy) – you need to harness imagination and the principles of a well-told story

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Muhammad Yunus

It was a village woman named Sufiya Begum who taught me the true nature of poverty in Bangladesh.

Like many village women, Sufiya lived with her husband and small children in a crumbling mud hut with a leaky thatched roof. To provide food for her family, Sufiya worked all day in her muddy yard

making bamboo stools. Yet somehow her hard work was unable to lift her family out of poverty.

Why?

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Like many others in the village, Sufiya relied on local moneylender to provide the cash she needed to buy the bamboo for her stools. But the moneylender

would give her this money only on the condition that he would have the exclusive right to buy all she produced at a price he would decide. What’s more, the interest rate he charged was incredibly high, ranging from 10%/week to as

much as 10%/day.

I had the names of 42 victims who had borrowed a total of 856 taka – the equivalent of less that $27 at the time – If I could make so many people happy

with such a tiny amount of money, why not do more?

Muhammad Yunus

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Storytelling

Title of the story

Situation/Desire

Complication/Obstacle

Solution/Outcome

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Before you start crafting your story…

•Before you craft your story, ask yourself: “Who is my audience and what are my goals in engaging them?”

•Make your message emotional by telling stories verbally and visually