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8/12/2019 Cantarella
1/4
Assurance and Advisory Business Services October 28, 2003
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Venture Capital Advisory Group
October 28, 20031
The Perfect ElevatorPitch, Slide Show, and
Business Plan Tools for
Raising Capital
The Perfect Elevator
Pitch, Slide Show, and
Business Plan Tools for
Raising Capital
Chris Cantarella
UMD Bootcamp
October 25, 2003
Chris Cantarella
UMD Bootcamp
October 25, 20032
My Rules of Thumb forRaising Capital1. Mindset
2. Communicating with VCs
3. Cantarellas Mantra (P.S.U.C.F.)
4. Elevator Pitch
5. Slide Show
6. Business Plan
3
There is NO PERFECT
elevator pitch, slide
show, or biz plan
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YOUR MINDSET is thekey.
3 STEPS to get youin the right MINDSET
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Step 1: Know YOURSELFand YOUR TEAM Your strengths/weaknesses
Your personal & teams vision
Know what you know
Know what you dont know
BE REAL/BE YOURSELF
Mindset
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Step 2: Know WHAT youseek Know your companys needs
Know what AUDIENCE you
seek
Mindset
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Step 3: Know yourAUDIENCE WHAT theyseek How they think
How they process information
How they make decisions
What THEIR NEEDS ARE
Mindset
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General VC Firm Mindset Manage Returns (IRR)
Manage TIME
Optimize current portfolio
value over time
If seeking new dealsoptimal
REWARD probability per unit
RISK
Mindset
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General VC PersonnelMindset Build their reputation/brand
Succeed in their ROLE at the firm
(new deals, raise funds, etc.)
Champion winning deals internally
Manage TIME
Mindset
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Communicating with VCs
Random one-on-one chats (Elevator
Pitch)
Referrals usually emails from their
trusted sources (Executive Summary)
VC Forums (Slide Show)
Before a Formal VCMeeting
YOUR GOAL?Attain a Formal Meeting
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Communicating with VCs
Presentation (Slide Show)
Q&A (Knowing your BusinessPlan)
Discussion (Communicate Free-style)
In 1st Formal VC Meeting
YOUR GOAL?Attain the 2nd Meeting12
Cantarellas MantraProblem Big & Painful
Solution Clear & Unique
Unfair Advantages-team,go-to-market, distribution, IP, etc.
Competition- Buyers Options
Financials Needs, Funds use,Why big return potential given risk
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Problem
How Many Buyers/Market?
How painful is it to the market?
How is the problem dealt with today?
The Audience MUST
Believe there is a Problem
worth solving in order to
keep listening!!!
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Solution
Basics of your solution
Basic unique advantage
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Unfair AdvantagesLegal and ethical but UNFAIR!!
Think aggressively here Is your team not an advantage here? If not you might need
to rethink your capital raise
Intellectual Property?
Unique Processes?
Unique position?
Unique deal/s?
Unique distribution or go-to-market advantage?
Unique advantage in operations efficiency?
Price point advantage?
Exit strategy advantages?
A lack of these should make you rethink
your business plan anyway!!!16
Competition How else can prospective buyer fix problem?
Your competitor's solution?
Build it in-house?
Wait? Status Quo?
Pretend it does not exist?
Deflect problem to a supplier etc?
Ask their present solutions provider to adapt
a temporary solution?
Your competition is ANYTHING that could hinder
your sales !!!
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Financials Funds you are asking for
Use of funds
Major Milestones/Milestones Projected
Expected capital needs thru to exit
High level 5 yr financial projections
Possible exit scenarios (possible multiples
etc.)
Why would an investor care to invest??? What is
the reward vs. risk in $???
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Elevator PitchAudience: VC (or Angel, Svc Provider, etc.)
Goal: Bait hook to attain 1stMeeting
Execution:
1. 50,000 ft levelof PSUCF
2. Focus on Sound Bites
3. Make sure so what benefits are tangible
4. Show passion
5. Plain English (KISS),
Structure: 2 minutes verbal
LESS IS MORE!
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Executive Summary
Audience: Referral Source thru to VC
Goal: Bait Hook to Attain 1stVC Meeting
Execution:
1. 30,000 ft Levelof PSUCF
2. 2-5 pages
3. Ensure to include Team info and top-line
financials
4. Plain English (KISS)
Structure: Word Document and/or PDF File
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Slide ShowAudience: VC (1stMeeting)
Goal: Create VC Champion for next Monday AM VC
mtg..attain 2ndmeeting
Execution:
1. 15,000 ft Levelof PSUCF use case examples of
problem.show impact ROI of solution
2. 10-12 slides 20 minutes worth
3. Have more detail Q&A Slides ready to go
4. Show passion
5. Plain English (KISS)
Structure: simple slides
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Business PlanAudience: VC (Helps you in discussions, DD,
planning)
Goal: 1) External to Raise Capital; 2) Planning with
credible financials; 3) Retrospective Tool
Execution:
1. 5,000 ft Levelof PSUCF
A) Executive Summary
B) Problem how many (market) & how painful
C) Solution Products/Service
D) Unfair Advantages Now and Later
E) Operational Plans
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Business Plan ContinuedF) Management & organization
G) Major Milestones
H) Structure & Capitalization
I) Financial Plan/Model where assumptions can be
changed
Ass umpt ions page
Rev enue Pro ject ions
Expense Pro ject ions
Gross Margins
Balance Sheet; Income Statement; Cash Flow
Statements
Break-even ana ly si s
Structure: 20-30 pages
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Have the Right Mindset
1. Know Yourself and your team
2. Know what you seek
3. Know your audience and what they seek
Use Plain English
Be Real/Be Yourself
K.I.S.S.
PSUCF
Know the Goal for Each Tool You Use
(Elevator Pitch, Exec Summary, Slide Show,
Business Plan)
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