Ent101 The Pitch - Peter Evans for MaRS
-
Upload
peter-evans -
Category
Documents
-
view
280 -
download
0
description
Transcript of Ent101 The Pitch - Peter Evans for MaRS
Pg 1!© 2011 Peter Evans, MaRS Discovery District!
Essential Elements for Investors!
Presented By:!
Peter Evans !Senior MaRS Advisor!
@techmarketer!
http://ca.linkedin.com/in/peterevansprofile!
Pg 2!© 2011 Peter Evans, MaRS Discovery District!
Other People’s Money Fundamentally Changes Everything!
Vision | Talent | Money
Pg 3!© 2011 Peter Evans, MaRS Discovery District!
The Entrepreneur/Investor Paradox !Entrepreneurs & Investors Take Different Approaches!
Getting to!
NO!
Investor!Entrepreneurs !
Getting to!
YES!
Pg 4!© 2011 Peter Evans, MaRS Discovery District!
Finding the Right Match!Matching the Venture to the Investor!
Successful!Track !
Record!
Compatible!Match of !
Size/Stage/!Geography!
Strategic!Relevant!Portfolio!
Friendly!No directly!competitive!investments!
Capacity!Has funds !to invest!
The Right!Investor!
Entrepreneurs want…! Investors want...!
Platform!Significant "
Technological"Advantage!
Market!Sizable and "Addressable!
IP &!Bus. Model !
Entry Barriers!
Traction!Early "
Customers"
Team!Skills & "
Track Record!
The Right!Investment!
Pg 5!© 2011 Peter Evans, MaRS Discovery District!
Getting to Yes: 3 Levels of Engagement!
Emotional! Rational! Financial !
Pg 6!© 2011 Peter Evans, MaRS Discovery District!
Components of the Investor Pitch!
Real!Problem!
#1!
AttractiveMarket!
#2!
Unique!Advantage!
#3!
Compelling Investment!
#4!
Pg 7!© 2011 Peter Evans, MaRS Discovery District!
Start!
Pacing the Pitch !Selling your story in 12 minutes!
End!
Real!Problem!
(3 min)!
#1!AttractiveMarket!
(4 min)!
#2!Unique!
Advantage!
(3 min)!
#3!Compelling Investment!
(2 min)!
#4!
*Note: Elapsed times are guidelines only
Pg 8!© 2011 Peter Evans, MaRS Discovery District!
Answering the “So What?”!
Real !Problem!
1!
Focusing a Problem that Matters!
Pg 9!© 2011 Peter Evans, MaRS Discovery District!
Creating Impact!
! Core Value Proposition: Use a single sentence:!
! Unique Benefit: Focus on one single aspect of what you do (aka…”the big idea”)!
! Metaphors: Provide a cognitive connection (the movie pitch) i.e. ”we’re the x of the y business.” !
! Proxies: “We’re x meets y”….!
! Emotion: Create a visceral response (why are things still done this way?)!
The Company & It’s Solution – Elevator Style!
Real Problem!
Introduction
Key Message: We’re fixing the insanity of the status quo!
Start! Min 3!
Pg 10!© 2011 Peter Evans, MaRS Discovery District!
Start!
! Current State: Show the insanity of how customers address the issue today!
! Historical Evolution: What’s changed in the customer’s mindset !
! Personas: Describe the main players in your market you address!
! Pictures: Every picture tells a story!
Real Problem!
Introduction
Problem
Defining the Problem!Paint a picture of who has this pain!
Key Message: We’re solving real pain…not “nice to haves”!
Min 3!
Pg 11!© 2011 Peter Evans, MaRS Discovery District!
! Product: What is it? "(screen shots, product photos)!
! Functionality: The Who + Do!
! Benefits: High level value!
! Category: Where do you play?!
! Stage: What is the readiness of the solution? !
Real Problem!
Introduction
Problem
Solution
Your Solution to the Rescue !Describe WHAT you do and HOW you do it!
Key Message: Our solution is novel and easy to understand!
Start! Min 3!
Pg 12!© 2011 Peter Evans, MaRS Discovery District!
! Founded (Year)!
! Employees (FT/PT) Offices!
! Product Release(s)!
! Beta Users/Unique Views/ Registrations!
! Paying Customers!
! Partners (Technology/Channel)!
! Certifications/Industry Awards!
! Media Coverage!
! Patents!
Real Problem!
Introduction
Problem
Solution
Traction
What’s Been Achieved to Date? !Show your ability to succeed: On lots of sweat…little $!
Key Message: Our team is committed and can execute!
Start! Min 3!
Pg 13!© 2011 Peter Evans, MaRS Discovery District!
Changing the Way Dentists Detect & Treat Tooth Decay
Investor Presentation: Quantum Dental Technologies
October 20th, 2010 MaRS Angel Breakfast
Lisa Crossley, CEO
Case Study: Quantum Dental!
Pg 14!© 2011 Peter Evans, MaRS Discovery District!
Gold standard detection methods (visual & x-ray) fundamentally unchanged for decades.
Existing Tooth Decay Diagnostics
Tooth Decay Detected
Case Study: Quantum Dental!
Pg 15!© 2011 Peter Evans, MaRS Discovery District!
by Quantum Dental Technologies
Canary interactive software and printed patient reports
The Canary Console
Case Study: Quantum Dental!
Pg 16!© 2011 Peter Evans, MaRS Discovery District!
Company Overview
What we do ! Quantum Dental Technologies has developed a new platform which uses a low-
powered laser to detect tooth decay earlier and more accurately than conventional technologies, allowing dentists to treat & heal the teeth instead of “drill, fill & bill”.
Milestones ! Product - Dental Clinic model designed, first commercial units manufactured ! Customers - Over 50 pre-orders secured ! IP - Strong patent portfolio ! Clinical - First Health-Canada approved clinical trial completed, second trial in
progress, providing independent validation of safety & efficacy ! Partnerships – Relationships with key global distributors and major multinational
strategic partners
Financing ! $3.3M raised to date, seeking an additional $2.5M to reach breakeven ! Funds: Sales/marketing to support launch; large-scale mfg; final reg. approvals
Case Study: Quantum Dental!
Pg 17!© 2011 Peter Evans, MaRS Discovery District!
Market Problem
! Need to increase revenues, leverage office staff to reduce costs
! Need to attract new patients
! Need new diagnostic tools that provide more accurate detection of tooth decay
! Discomfort during x-rays
! X-ray exposure ! Painful and costly
restorations ! Weakened tooth
structure
! High false positives / false negatives
! Can’t detect early tooth decay
! Can’t detect decay on all tooth surfaces
! Interference from orthodontics
Dentists’ Concerns Limitations of Current Detection Methods
Patients’ Concerns
Case Study: Quantum Dental!
Pg 18!© 2011 Peter Evans, MaRS Discovery District!
Value Proposition
Value to the Dentist ! Attract new patients: with state of the art
technology and a minimally invasive approach
! More patient visits: more frequent visits for patients enrolled in remineralization programs
! Reduce costs: scans can be performed by other staff (hygienists, assistants)
! Affordable: flexible leasing options provide immediate profitability
Value to Patients & Insurers ! Reduce costly & painful restorations
Case Study: Quantum Dental!
Pg 19!© 2011 Peter Evans, MaRS Discovery District!
What it is – Canary Console
! Show product with call outs
Handpiece
Laser & Intra-oral Camera
Eye Shield
Console
CA Patent # 2314691 US Patent # 6584341
Case Study: Quantum Dental!
Pg 20!© 2011 Peter Evans, MaRS Discovery District!
What it is - Screenshot Odontogram
Menu Options
Canary Number
Camera Image
Case Study: Quantum Dental!
Pg 21!© 2011 Peter Evans, MaRS Discovery District!
Healthy Tooth
Early Enamel Decay
Advanced Enamel Decay
Demineralization
The Life Cycle of Tooth Decay
Remineralization
Remineralization Therapies The Canary System Scan X-Ray, Drill Fill & BIll
Case Study: Quantum Dental!
Pg 22!© 2011 Peter Evans, MaRS Discovery District!
Attractive Market!
2!
Opportunity Awaits!Lots of Room in the Market to Scale a Business!
Pg 23!© 2011 Peter Evans, MaRS Discovery District!
! Size: What’s being spent today on problem? Build from ground up. Can the market support multiple players?!
! Addressability: What’s the reasonable market you can serve? !
! Trends: Focus on Formative Forces (PESTLEC) –Is the problem getting worse or growing over time?!
! Charts: Keep it visual and engaging!! Segments: Going Niche or broad?!! Global: Identify other markets!! Proof: Use 3rd Party reports!! Thought Leadership: Are you using primary
research to gain insight?!
Market Size
Attractive Market!
Sizeable Market Opportunity!It’s Very Big …And you Can Get To It!
Key Message: We have unique insight into the market!
Min 3! Min 7!
Pg 24!© 2011 Peter Evans, MaRS Discovery District!
! Status: Closed vs. Prospects and "Paid vs. Free Trial !
! Categorize: Key segments etc.!
! Contextualize: Why they bought!
! Personify: Describe customer personas!
! Logos: Create Visual appeal (not clutter)!
! Evangelists: Customer quotes to validate market pain and size !
Customers
Attractive Market!
Market Size
Early Customers/Prospects!Nothing really happens till somebody sells something!
Key Message: We have buyers who must have our solution !
Min 3! Min 7!
Pg 25!© 2011 Peter Evans, MaRS Discovery District!
! Key Metrics: Pricing, Avg. Deal Size, Registrations/Subs., Churn, LTV etc. Note: Cost to Acquire is perhaps the most overlooked and important metric!
! Channels: What are the downstream costs to sell and service the customer (is this built in?)!
! Competition: Is your model sustainable if competitors start stealing share? Have you factored in potential of downward price pressure over time? !
Revenue Model
Attractive Market!
Customers
Market Size
Making Money!Where does the growth and profit come from?!
Key Message: We’ve validated our revenue model and can !demonstrate how it will allow us to scale the business !
Min 3! Min 7!
Pg 26!© 2011 Peter Evans, MaRS Discovery District!
! Visibility: Critical to success.. "what’s your unique story?!
! Lead Generation Programs: What marketing approaches will you use (stay high level – categorize)!
! Sales Model: Direct vs. Channel (Do you have partners? Have you built a wave for channels to ride?) !
! Systems: Do you have an infrastructure to scale (CRM/Inbound Mktg. Platforms etc.)!
! Testing: Do you have capability to test value prop./offers?!
! Stages: Do you have the ability to pivot from launch to growth to maturity?!
Marketing & Sales
Attractive Market!
Revenue Model
Customers
Market Size
Acquiring Customers!The most visible proof there’s a market for your solution !
Key Message: We have programs, systems and talent to !drive visibility, lead gen. and close deals!
Min 3! Min 7!
Pg 27!© 2011 Peter Evans, MaRS Discovery District!
Case Study: Wave Accounting!
November 9th, 2010!MaRS Angel Breakfast"
Changing the business of small business accounting.
Kirk Simpson, President & CEO
Pg 28!© 2011 Peter Evans, MaRS Discovery District!
Case Study: Wave Accounting!
Confidential – Wave Accounting Inc., 2010
The Market Opportunity
1. The explosion in SaaS • primary driver is accessibility anywhere • collaboration • auto-backup
2. Paper to digital • lose the shoebox by bringing in digital
copies of the transaction
3. Wireless • turn downtime into productive time • increase automation
4. Collaborative Consumption • show me what my peers are spending so I
can make better decisions
2
Strong desire to be organized, lack competency in this area but looking for control.
Free Agent Nation
28.5 million in North America!
Wave is at the forefront of some powerful trends:
Pg 29!© 2011 Peter Evans, MaRS Discovery District!
Confidential – Wave Accounting Inc., 2010
Recent Successes
! 1.8 million users in 2 years – 4.2 million after 4 years
! Sold for $170 million (17 times rev or $140 per user) to Intuit in 2009
! 2 million + users ! Monthly fee for use
3
Case Study: Wave Accounting!
Pg 30!© 2011 Peter Evans, MaRS Discovery District!
Confidential – Wave Accounting Inc., 2010
Revenue Model
4
Targeted Offers & Research
! Wave will embed targeted offers within the app based on users’ data (never against personally identifiable information) – Telus now a customer
! Selling aggregated research about what’s happening in this key market
Case Study: Wave Accounting!
Pg 31!© 2011 Peter Evans, MaRS Discovery District!
Confidential – Wave Accounting Inc., 2010
Revenue Model
Premium Products
Additional modules available for a fee (built by Wave or through 3rd party integrations)
! Payroll (in discussions with several U.S. and Canadian providers)
! CRM
! Receipt entry (shoeboxed)
! Email learning
5
Tax Returns Web-based tax preparation (for a fee)
Case Study: Wave Accounting!
Pg 32!© 2011 Peter Evans, MaRS Discovery District!
Confidential – Wave Accounting Inc., 2010
Go to Market Strategy
! Integration Stickiness Auto-syncing banking data every night
! Communication: Informative, insightful weekly emails
! Offers: Value-added, contextual, time sensitive offers
! Collaboration tools with internal and external advisors (i.e., accountant)
! Focus on customer service
! PR – already featured in the Financial Post and Profit Magazine. U.S. PR through Hoffman.
! Social media and blog to drive SEO
! Partnerships, i.e. Freshbooks, banks, accounting firms
! Vertical Communities: Custom chart of accounts for 40+ industries
! Advertising: Google Adwords, Facebook Ads, LinkedIn DirectAds
6
November
16 LAUNCH
CAPTURE RETAIN
Case Study: Wave Accounting!
Pg 33!© 2011 Peter Evans, MaRS Discovery District!
You are in the Best Position to Win!
Unique!Advantage !
#3!
Many of the essential pieces are in place !
Pg 34!© 2011 Peter Evans, MaRS Discovery District!
! Role: What value will they add to your solution Research/Development/Sales/Support etc.!
! Reputation: Do you you have the right players in the market you are serving? !
! Category Fit: Do they have sufficient market power?!
! Executive Sponsorship: Do you have buy in from key people inside the channel? !
! Incentives: Is the partner aligned financially to support you?!
! Longer Term: Is there competitive threat or potential M&A?!
Partners
Partners!Show how you can punch above your weight !
Key Message: Important market players buy into our !vision and want to work with us!
Min 8! Min 10!Unique Advantage!
Pg 35!© 2011 Peter Evans, MaRS Discovery District!
! Technology: Validate how you are different? How much market lead do you have? What degree of leverage and scale do they create?!
! Process: Are there unique process elements of how your technology works?!
! Licenses: Are there 3rd party components of your solution that are licensed? Do you have an exclusive right to the technology? !
! Patents: What is the focus of the patent and what stage are you at? (provisional filing, patent granted) – Not a bad idea to mention any name brand attorneys you work with.!
Partners
Technology/IP
Technology/IP!Creating barriers to entry!
Min 8! Min 10!Unique Advantage!
Key Message: We’ve nailed a problem that is hard to solve. !It will be hard for competitors to catch up!
Pg 36!© 2011 Peter Evans, MaRS Discovery District!
! Company Background: List experience in terms of key companies each team member worked for. List “pedigrees” (notable exits).!
! Planned Hires: Speak briefly to what primary role they will play in the venture!
! Achievement: Focus on a key aspect of their experience that uniquely qualifies them for the venture!
! New Hires: Where applicable, speak to any key people you may be hiring to build out the team!
Partners
Technology/IP
Team & Advisors
Unique Advantage!
Team & Advisors!The capabilities to execute on the plan!
Min 8! Min 10!
Key Message: We have assembled the right mix of people who understand our target customers and the dynamics of the marketplace. We have “know how” and “know who.”!
Pg 37!© 2011 Peter Evans, MaRS Discovery District!
Case Study: Verold!
Automating 3D!
Jad Yaghi!Co-Founder and [email protected]!
Pg 38!© 2011 Peter Evans, MaRS Discovery District!
Competitors!
Manual Tools ! Other Scanners!
Any Size Object!
Full Automation!
Automated!
Simple to Use!
Rapid Asset Creation!
Ready to Animate !
No Special Hardware!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
Case Study: Verold!
Note: Other visuals such as 2x2’s can also be used here
Pg 39!© 2011 Peter Evans, MaRS Discovery District!
Case Study: Verold!
IP Portfolio!
• R&D conducted top German University (Computer Graphics Lab!
• Concepts, high level methods by our CTO, Matthew Sloly!
• Key Patents:!
Licensed IP!
Automatic retargeting of 3D meshes!
Animation content transfer!
Automated Rigging!
3D City reconstruction from images!
IP Developed by Verold!
Work-flow for automated creation of animation-ready 3D models!
Multi-user real-time 3D model reconstruction!
Pg 40!© 2011 Peter Evans, MaRS Discovery District!
Chris Cole (Co-founder of Mathematica, ActiveWorlds, consultant Disney Imagineering) ! !!Robert Quance (entrepreneur in Residence, MaRS)!Georgy Oganov (Chief strategist at Gaz-Prom, former Russian ambassador)!
Team/Advisors!
Name! Position! Background!
Matthew Sloly! Co-Founder & CTO!
• Internationally recognized digital artist with work in the collection of the National Gallery of Canada!
• Co-Invented majority of the IP being commercialized!
Jad Yaghi! Co-Founder & CEO!
• Serial entrepreneur with over eight years management experience in startup environments!
• Previously Strategy Consultant with Monitor!
Oliver Schiffers! CMO! • Founded two online and VR companies 1996 and 1998!• 10 years experience, Senior Consultant and Head of
Marketing Strategy in ICT, Sapient!
Alexander Oganov ! Business Development!
• Angel InvestorSuccessfully invested in 32 early stage companies!
Nils Martins! 3D Engine Developer!
• Virtual Reality Center, Aachen!• 4 years geometry processing and game engine
development!
Dr. Leif Kobbelt! Chief Computer Scientist!
• Computer scientist at RWTH Aachen!• Geometry Processing!
Advisory Board!
Case Study: Verold!
Pg 41!© 2011 Peter Evans, MaRS Discovery District!
There is Upside for Investors!
Compelling!Investment!
#4!
Presenting the Offer for Investment!
Pg 42!© 2011 Peter Evans, MaRS Discovery District!
! Key Numbers: Revenues, Expenses, EBITDA, Customers, Headcount !
! Burn Rate: What is the net cash out month!
! Assumptions: Be prepared to defend them !
! Scenarios: Be able to speak to impact of various scenarios (i.e. Cost of Acquisition is x% higher than forecast or lack of conversion from free to premium)!
Financials
Compelling Investment!
How You Will Make Money!Key Metrics that Explain the Bottom Line for Investors!
Min 10! End!
Key Message: Our venture clearly offers a superior return for our investors.!
Pg 43!© 2011 Peter Evans, MaRS Discovery District!
! Investment Structure/Terms: Type of Instrument (Convertible Debt, Equity) and what are the terms of the deal !
! Amount: What’s been raised and what is left in the round? Use of Proceeds: What milestones will you achieve (with the investors money)!
! Runway: What amount of time does the current money buy (can you hit breakeven or is a new round required?) !
! Pipeline: Be prepared to speak to who is committed so far and who are you approaching. You must show momentum – “herd dynamics.”!
! Valuation: Be careful about “premature” discussions regarding pre-money value – don’t price from the podium! !
Compelling Investment!
Financials
Offer Details
The Ask!Value & Deal Structure/Terms & Use of Funds!
Min 10! End!
Key Message: Our structure and terms should meet your investment criteria!
Pg 44!© 2011 Peter Evans, MaRS Discovery District!
Sample Slide!
Pg 45!© 2011 Peter Evans, MaRS Discovery District!
Sample Slide!
Pg 46!© 2011 Peter Evans, MaRS Discovery District!
A Recap: The 4 Components of the Pitch!
Real!Problem!
#1!
AttractiveMarket!
#2!
Unique!Advantage!
#3!
Compelling Investment!
#4!
Pg 47!© 2011 Peter Evans, MaRS Discovery District!
7 Signals…you need to send!What a Great Pitch should Communicate!
1. Honesty……........................ !Gives straight answers to investor questions!2. Credibility…..........................Demonstrates customer insight/thought leadership!
3. Resourcefulness……………!Can make an investor’s dollar go far as a startup !
4. Logic …………….……………Makes wise, pragmatic decisions!
5. Passion……………………….Genuine commitment & ability to excite!
6. Humility……………………….Team is coachable and will listen to advice !
7. Leadership……………………Has the ability to attract and lead a winning team!
Pg 48!© 2011 Peter Evans, MaRS Discovery District!
Winning Bonus Points with Investors !
! Storify!Create a way to engage the investor!
! Personify!Investors are in the people business…!
! Simplify!Use frameworks and avoid jargon !
! Disnify!Use graphics where they make sense !
! Verify!Can you finish this sentence? “As evidenced by…”!
Some secrets!
Pg 49!© 2011 Peter Evans, MaRS Discovery District!
Our Thanks to MaRS Clients
Lisa Crossley CEO Quantum Dental Technologies www.thecanarysystem.com
Kirk Simpson President & CEO Wave Accounting www.waveaccounting.com
Jad Yagani CEO Verold www.verold.com
Pg 50!© 2011 Peter Evans, MaRS Discovery District!
Peter Evans, Senior MaRS Advisor!
@techmarketer! http://ca.linkedin.com/in/peterevansprofile!