v1.1,2017‐04‐13

Whatisthepurpose ofastartup?

OneBusiness,ManyPitches• TypesofAudiences• Investors• Partners• Customers• CustomerDiscovery• PotentialEmployees• ServiceProviders/Vendors

• AudienceCustomization

InvestorPitch

PitchOutline• Introductiontoyouandthecompany• Problem• Solution• BusinessModel• UnderlyingMagic• MarketingandSales• Competition• ManagementTeam• FinancialProjectionsandKeyMetrics• CurrentUpdateandProposedDeal

Observations• Whatdidyousee?• Technology– 1slide,“UnderlyingMagic”• Team– 2slides(20%)• Business– 7slides• It’saboutthebusiness,nottheproduct

• MBAClassExample

Problemvs.Solution• Youmustbesolvingaproblem• Thecustomermustunderstand thatthereisaproblem

• Don’tbethatguy…• Solutioninsearchofaproblem• EducationalSale

BusinessModel• ProductvsService

• Monetization‐ Revenuemodel• ProductSale,SubscriptionModel,Freemium

• EconomicallyViable

• Scalability

• StrategicPartners

UnderlyingMagic• Finally,Igettotalktech?!?!?

• No,NOTadeepdiveintothetechnology

• Whatpreventssomeonefromcopyingyou?• IP– patents,trademarks,copyrights,tradesecrets

• Whatisyourunfairadvantage?

Competition• ThereisALWAYS competition

• Thinkbroadly• Whatindustryareyoudisrupting?• Whatproductwillyoudisplace?• Whowillbehurtifyouaresuccessful?

• HowtoPresent?

• Superiority• WindowsXP?

Team• IdealTeam

• Experienced‐ serialentrepreneur(s)• ComplementarySkills• Deepconnectionsinthemarket/industry• Committed

• InvestorsinvestinTeams!

FinancialModels&Projections• TopDownvs.BottomUp

• BusinessPlanreducedtonumbers• Supportedbyproforma financialstatements• ConsistentwiththeBusinessModel

CurrentUpdate&Deal• CurrentUpdate

• DemonstrateTraction• CustomerDiscovery,MVP,Sales,Milestones,Execution

• ProposedDeal• AmountBeingRaised• TypeofSecurity• Pre‐moneyValuation• MinimumInvestment• Pathtocompletetheround

WhatElse?• FinancingStrategy

• FinalRaiseorFirstofMany• CurrentCAPtable

• ExitSlide• Howdoinvestorsseeareturn?• Confirmgoal=Exit• Whowouldwanttobuyyou?Atwhatmilestone?• IndustryStandards• ComparableAcquisitions

• BackupSlides

FinalThoughts

TheNDAIssue• MostpeoplewillNOTsignanNDA

• Strategies• Discussproblem,painpoint,currentsolutions• Whataretheirexpectationsofyou?• Discloseinformationcommensuratewithrelationshipstage• Talkwithoutsayinganything

TheInventor’sDilemma• Entrepreneurship=seeingopportunity,fillingvoid

• ScientificBackground• Excellentpreparationforentrepreneurship• …but,yourstrengthcanbeyourWeakness

• Recommendations• Workon thebusiness,notin thebusiness• Limit yourworkontheproduct• BizDev ReturnonInvestment

PitchSuccess?• YouwillNOT leavewithacheck!

• Goal:GetAnotherMeeting

SuggestedReading

GetInvolved• StartupBreakfast

Wed,7:30a,FirstWatch,SouthBroadway

• 5Across(www.5across.org)• SPARK• VACELunch&Learn(vace.uky.edu)• GlobalEntrepreneurshipWeek– Nov

EricHartman

eric.hartman@uky.edu859‐257‐2385

kyinnovation.com vace.uky.eduLinkedIN:www.linkedin.com/in/kyineric

Twitter:@KyINeric