The 8 Minute Investor Pitch
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Transcript of The 8 Minute Investor Pitch
1
Cleantech Network, LLC. Resource: MI-SBTDC
The 8 Minute Investor Pitch
Cover sheet with company logo
and tag line
Basic tips:
-No type smaller than 28 point-- the bigger, the better
-No full sentences, brief points only
-As many graphics as possible / as many graphics as it makes sense to include
--business-focused presentation (vs. technology-focused)
--Can a 10-year old understand what you do from this presentation?
Cleantech Network, LLC. Resource: MI-SBTDC
Introduction
Anatomy of the 8 Minute Pitch
The Problem
The Solution
Sales Strategy
Competition
Traction/ Milestones
Management
Revenue Model
Financials
The Offer
Market Size
The Technology
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Cleantech Network, LLC. Resource: MI-SBTDC
Company Name & LogoContact formation
Date
Audience
Presenters
One Line Description of what your company does
Introduction
Cleantech Network, LLC. Resource: MI-SBTDC
The Problem
• Define the problem and WHO has
this pain
– Graphs
– Pictures
– Describe a problem scenario /usage case
– The goal is to get everyone nodding &
“buying-in”
The Problem
3
5
75-100 Million Interviews (Per Yr)
$350 Billion Claims Related (Per Yr)
Process is “Off The GRID”
Paper
Claims File
Weeks and Months
The Problem: Recorded Claims - Example
Cleantech Network, LLC. Resource: MI-SBTDC
The Solution
Overview of primary product or
service that will solve the problem
The Solution
• How do you alleviate the “pain”
• Use multiple slides if necessary – see
“The Technology” slide
• Short list of Feature/Benefits
4
Cleantech Network, LLC. Resource: MI-SBTDC
The Technology
• Quick overview of the company’s technology
• Tie to the Solution
• Do not exceed time limits- avoid in-depth
technical explanations
• Product Photos, Screen shots
• Logical Flow and Architecture diagrams
The Technology
8
$15M Savings (Per Yr): Farmers Insurance
24 x 7 x 365 Availability
Giant, Untapped Data Asset
Minutes
Claims Rep
Interviewees Bridge .WMA
The Solution: Digital Service - Example
5
Cleantech Network, LLC. Resource: MI-SBTDC
Traction/ Milestones Slide
Traction/ Milestones
Today 200__ 200__200__
Proof of Concept Tech. Development / Scale-Up Launch
Incorporated
Mngt. Team in Place
Provisional Patent Filed
Beta test
Paying customers
Strategic channel partners
Received A round Financing
Customer Launch
Be clear about the status of product development
Cleantech Network, LLC. Resource: MI-SBTDC
Market Size
• Build the number from the ground up• Total Addressable Market
• Use drivers relevant to your product
• Show the different segments
– Pie Graph works well
– Explain how you prioritize the segments• “This is our initial market” (explain why)
• If you use 3rd party figures, cite the source
Market Size
6
Cleantech Network, LLC. Resource: MI-SBTDC
Total Addressable Market: US home broadband users
ages 12 to 34 who actively consume internet video
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2.7
4.4
22.4
8.5
14.1
14M2006
45M2011
29-34yrs18-28yrs 12-17yrs
Market Size - Example
Cleantech Network, LLC. Resource: MI-SBTDC
Customers• Current Customers
– 83 startup companies like the following:
Customers
• Potential Customers
• Early stage technology companies raising between $250K to $2M
– Your Company, Inc.
– His Company, Inc.
– Her Company, Inc.
7
Cleantech Network, LLC. Resource: MI-SBTDC
Sales Strategy
How do you sell your product? Direct and/or Channel Sales
If Direct,
• How many sales people?
• How long does it take to close a deal?
• Who is the key decision maker? (Especially if that differs from the key user)
If Channel,
• Who are the partners?
• How many are required?
• How are the territories divided? (If relevant)
Sales Strategy
Cleantech Network, LLC. Resource: MI-SBTDC
Revenue Model
• How do you make money? Who pays you?
• Licensed Software
• Hosted Solution, Monthly Fee + 2% of all transactions
booked through our system
• We Sell Oxygen Molecules; Direct and Through a Channel
• Time and Materials
Revenue Model
Cost $650
Distributor
$1750
Retailer $2000
Customer $2500
Gross Profit
$1100
Avg Customer Buys
24 Widgets per year
20%
10%
Gross Margin
>60%
Average Customer is worth
$60,000 in annual Revenue
This is an example for demonstration purposes only
8
Cleantech Network, LLC. Resource: MI-SBTDC
Revenue Model (alternative)
Revenue Model
• Provide a diagram of your business environment (value chain)
• Who are the Stakeholders?
• How are they related?
Company
License
Holders
Mfgrs.VAR
End User
Technology
Licenses
License
Revenue
Sales
Dollars
Tech. &
Mfg. Fees
Components
Finished Goods
& Services
Cleantech Network, LLC. Resource: MI-SBTDC
Competition
• Indirect Competition
– Summarize the current alternatives (other technologies or types of
products)
• Direct Competitors
(logos are easier to read than text)
• Use a matrix if possible
Competition
Energy
output
Weight Durability Cost
You
Competitor
1
Competitor
2
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Cleantech Network, LLC. Resource: MI-SBTDC
Management Team
• Name, Position– Prior Company, Position (VP or above), Years focus on successes, exits
– Prior Company, Position (VP or above), Years
– Entrepreneurial experience (if any)
• Name, Position– See above
• Name, Position – See above
• Open positions– VP Sales
– Head of QA
Management
Cleantech Network, LLC. Resource: MI-SBTDC
Advisory Board
• Name, Area of Expertise– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Area of Expertise– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Area of Expertise– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Area of Expertise– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
Advisory Board
10
Financial ProjectionsFive Year Projections (Millions, US) Assumptions:
– In 2010, $__ per sale
– In 2010, __customers
– 2010 market share: __ %
– In 2010, __% from new
sales; __% from
recurring
– U.S. market only
– Does not include future
product extensions
This is an example for demonstration purposes only
Financials
3
-0.5
100.1
40
20
80
50
120
70
-20
0
20
40
60
80
100
120
Do
lla
rs (
$M
M)
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Income
Financial Projections (alternative)
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
COGS
Gross
Margin
OpEx
Net Inc.
Financials
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Cleantech Network, LLC. Resource: MI-SBTDC
Funding Requirements
Prior Funding: - $ from founders, $ from outside investors, $ grants
Current Round:- Seeking $1 million ($500,000 raised)
- Pre-money valuation: $2 million
Use of Funds:- Finish v 2.0 Prototype
- Launch in xxx market
- File patents
Future rounds:
- Series B of $ million expected in early 2007
Exit Strategy:- Acquisition (perhaps Microsoft, IBM, Nike, or Gatorade)
The Offer
Cleantech Network, LLC. Resource: MI-SBTDC
Last slide:
• Company logo
• Your name and title
• Phone number
• Email address