TOFI Sept. 14, 2015 PitchBootcamp: Erschen

8/20/2019 TOFI Sept. 14, 2015 PitchBootcamp: Erschen

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TheArtful ien e of Pitching™

TheArtful

ien e

of Pitching™

Frank Erschen

[email protected]

Some contents are © 2012-2015 Frank Erschen, Inc.




Topics

Artful Science Perspective

Art vs. Science

Pitch Strategy

Pitch Ingredients & Short/Long Pitches

Hints & Tips




25-year corporate career (IBM, BMO)

Start-up space since 2006

Multiple Founder, CxO, Board, Advisor roles

Member, Investment Committee,

Laurier Start-Up Investment Fund

Angel InvestorGolden Triangle Angel Network

2011 Angel of the Year

2014 Community Builder of the Year

Member, GTAN Selection Committee

Director, Network of Angel Organizations – Ontario

Speaker / Pitch Competition Chair, National NACO Summits

(National Angel Capital Organization)

Pitch Coach / EIR based on …….….. Raising funds – asking, negotiating, closingUnderstanding how Angels & VCs select & decide

Understanding what Founders want & need

Deeply appreciating operational & funding challenges

Been There, Done That, Always Learning

About Me

TheArtful ien e

of Pitching™

TheArtful ien e

of Pricing™

(B2B, enterprise) (B2B2C) (small/med)



TheArtful ien e of Pitching™ Sept 2015 4

Innovation & Entrepreneur MBA

(India)

Communitech Rev

COMMON GROUND

OMAFRA – University

of Guelph Partnership




Today is about …

Sharing the basics of good pitching

Introducing a proven framework

Preparing you for the “competition”

Sept 2015 5


Image: iStockphoto/RyanKing999




Objective of Your Pitch

Sept 2015 6





Objective of Your Investor Pitch

Sept 2015

Attracting, negotiating and closing investmentis a process … requires pitch strategy

7





Objective of Your Pitch Competition Pitch

Sept 2015

Winning a pitch competitionrequires pitch strategy

8





PitchStrategy

Story

Criteria

Audience& Venue

Format

© 2012-2015 Frank Erschen, Inc.




PitchStrategy

Story

Criteria

Audience

Format




TheArtful ien e of Pitching™ Sept 2015

Art

vs

ien e

11






how & what you pitch

(with imperfect information)

Sept 2015 12


Art



TheArtful ien e of Pitching™ Sept 2015

“ ien e”

How investors evaluate.

13


(sometimes formally,

sometimes informally)

vs




PitchStrategy

Story

Criteria

Audience

Format

Timing

How many minutes to pitch?

Uninterrupted or interactive?

How long is Q&A?

Agenda

Who else pitching?

When vs. others?

Who’s before/after me?

Venue

Stage/ podium?Microphone or lav mic?

Preview monitor?

Investors

Investment

strategy/criteria?

Current portfolio?

Due diligence process?

Competition

Scorecard?

Weighting?

Decision process?





PitchStrategy

Story

Criteria

Audience

Format





The

story(content& logic)

Whateach

audienceneeds to

know

Whatyou

know

Logic

Flow

Content Right

Depth

Context

Sept 2015 16© 2012-2015 Frank Erschen, Inc.The

Artful ien e of Pitching™

Pitch

Audiences

Pitch

Ingredients

Your Delivery

Friends &

Family

Strategic

PartnersTalent VCsAngels Institutions




PitchStrategy

Story

Criteria

Audience

Format

BeClear

Compelling

Complete

Captivating

Short or

Long Pitch?Interactive or

Uninterrupted?





Short or

Long Pitch?Interactive or

Uninterrupted?

Sept 2015 18

INTERACTIVE UNINTERRUPTED

LONG

(usually with deck)

SHORT

(usually no deck)





Must: get key

points out very

quickly

Need to quickly capture

interest to invite Q&A

Must: get key

points out quickly

Need to capture & hold

interest throughout

unpredictable Q&A

Must: deliver a

cogent pitch &

compelling close

Impress the audience vs

other pitches heard

Sept 2015 19

Must: tell a holistic

investor story

Need to cover all key

points expected by

audience


Most Angel

& Some VC

Mtgs

1:1

Meetings

Most Angel& Some VC

Mtgs

Some Angel& Most VC

Mtgs

All Quadrants:

Competitions

LONG

(usually with deck)

SHORT

(usually no deck)





Must: get key

points out quickly


interest throughout

unpredictable Q&A


investor story


points expected by

audience

Most Angel& Some VC

Mtgs

Some Angel& Most VC

Mtgs

Must: get key

points out very

quickly



Must: deliver a

cogent pitch &

compelling close


other pitches heard

Sept 2015 20


Most Angel

& Some VC

Mtgs

1:1

Meetings

All Quadrants:

Competitions

LONG

(usually with deck)

SHORT

(usually no deck)





Elevator Pitch

ManagementTeam

Problem, Solution,Competitive Advantage

Revenue Model &Go To Market Strategy

Financing to Date,Ask, Use of Funds

Avoid

Causing Confusion

Creating Complexity

Cascading Concern

BeClear

Compelling

Complete

Captivating

Address

Criteria(Completely)

Typical Short Pitch Content

Strive for a Story with No Intersecting Lines

CONTEXT

CREDIBILITY

SUITABILITYVIABILITY

BELIEVABILITY





Elevator Pitch

BeClear

Compelling

Complete

Captivating

Address

Criteria

(Completely)

• 15 second overview of your space – to catch interest

• Not a preview of the rest of your pitch – be creative, but not obtuse

Capture Attention

What space are

they in?





Management Team

Be

Clear

Compelling

Complete

Captivating

Address

Criteria

(Completely)

• Subject matter expertise with deep knowledge of market

• Functional competence and technical skills to deliver

• Passion and commitment about the problem and solution

• Plan for building team, filling key roles at the right stage

• If a competition: Check for specific criteria

Capture Attention, Est. Credibility

Is s/he coachable,

aware?





Problem / Solution /Competitive Advantage

Be

Clear

Compelling

Complete

Captivating

Address

Criteria

(Completely)

• Tightly articulated problem and clear solution & value proposition

• Significant and unique value proposition (that buyers are willing to pay for)

• Low barriers to adoption or integration, and/or low cost of switching

• High barriers to entry for competitors, difficult to replicate

• Well differentiated from competitors, substitutes or alternatives


Capture Attention, Est. Credibility,Capture Interest

Are they focused?

Can this win?






Be

Clear

Compelling

Complete

Captivating

Address

Criteria

(Completely)

• How we make money

• Validate, Enter, Grow

• When – When did/will you Validate, Enter, Grow?

• Who – Customer segment?

• Where – Geography?

• How – Direct or via channel partner?• Scale – what do you need to do to be able to scale?


VEGaS™

When, who, where, how

Validate solution

Enter market

Grow tractionand

Scale the business

Capture Attention, Est. Credibility,Capture Interest, Create Excitement

Stage-dependent

Can I see a Profitable

Product-Market Fit?






Be

Clear

Compelling

Complete

Captivating

Address

Criteria

(Completely)

• How have you survived to date? (savings & bootstrapping, friends & family, …)

• What are you looking for today to support your Go To Market plans?

• Where else are you looking?

• What will you achieve with today’s ask? When is next raise?

• Overview of use of funds (e.g., piechart reflecting Go To Market plans)


Capture Attention, Est. Credibility,Capture Interest, Create Excitement,

Confirm Interest

Investment vs.

Exit & Return?





Deliver

Confident Answers

in Q&A

Sept 2015 27

Be

Clear

Compelling

Complete

Captivating

Address

Criteria

Capture Attention, Establish Credibility,

Capture Interest, Convey VEGaS™,

Create Excitement, Confirm Interest

Avoid

Causing Confusion

Creating Complexity

Cascading Concern

Elevator Pitch

Management Team



Problem, Solution,Competitive Advantage

Pitch

Strategy





Hints & Tips1. Artful Science and Business Model Canvas / Lean Canvas

2. The Big Question(s)

3. Story Sensitivity: What S-Zone™ are you in?

4. Alignment: Vertical, Diagonal, Horizontal

5. Q&A Tips

6. Set up for successful Due Diligence

Sept 2015 28© 2012-2015 Frank Erschen, Inc.




Value

Proposition3 Problem Solved or

Opportunity Created

7 Go To Market

Cost Structure9 Revenue Model

10 Projections

* Key Partners7 Go To Market

† Problem3 Problem Solved or

Opportunity Created

4 Market Size

* Key

Activities7 Go To Market

† Solution3 Solution / Product Customer

Segments4 Market Size

7 Go To Market * Key Resources11 Team

12 Financing to Date, Ask, Use of Proceeds

† Key Metrics7 Go To Market

10 Projections

Revenue Streams9 Revenue Model

10 Projections

* Customer

Relationships7 Go To Market

† Unfair

Advantage11 Competition /

Differentiation

Channels7 Go To Market

*Green is Business Model Canvas †Orange is Lean Canvas Black is BothSmall text is where Canvas element is used in The Artful Science of Pitching framework

Artful Science of Pitching and Business Model Canvas / Lean Canvas



TheArtful ien e of Pitching™ Sept 2015 © 2012-2015 Frank Erschen, Inc.

You MUST answer the big questions in your pitch

Your Business Your Big Question

All Is the business viable? Does the story hang together?

2-sided market Chicken and egg question

Social platforms How and how fast to get a large user base?

Manufacturing Where? BOM? Quality plan? IP protection? IP licensing?

Physical Product Sourcing / manufacturing strategy? Distribution strategy? IP protection & licensing?

Pharma, medical devices Do you need regulatory approval? Why/why not? Who’s helping you?

SaaS How well do you understand SaaS? Cash flow needs? Conversion metrics?

B2B, Enterprise Sales cycle? Procurement hurdles? Funnel strategy?

B2B, SME Sales cycle? Channel strategy? Funnel strategy?

Social impact Is your message clear? (will it attract enough of the right investors?

B2C Mass marketing strategy (traditional, SEO, etc.)

Services-based business Can you scale this business?

30




The Sensitivity-Zones™


Your zone and trajectory will guide the tone and core message/theme of your pitch.

Strategy

S1

What’s our focus?

Lean Canvas

Deep mentoring

Sleepless

S2

Getting going

Raising money

Recruiting talent

Swing

S3

A-B testing

Pivots

Traction?

Scale

S4

Sink

S6

Salvage

S5




Mapping VEGaS™ to the S-Zones™

ValidateMVP GrowEnter

Scale

and


Strategy

S1

What’s our focus?

Lean Canvas

Deep mentoring

Sleepless

S2

Getting going

Raising money

Recruiting talent

Swing

S3

A-B testing

Pivots

Traction?

Scale

S4

Sink

S6

Salvage

S5




Q&A TipsEvery pitch has 2 pitches

(delivery pitch and your Q&A)

Script & rehearse answers, especially for the tough Qs

(don’t over-answer; try yes/no with a few crisp supporting statements)

If you use backup slides, know location cold

(consider using hyperlinks for navigation, example: )


Tips

Menu




Pitch Alignment

34

VERTICAL

DIAGONAL

HORIZONTAL

Sept 2015 © 2012-2015 Frank Erschen, Inc.





Set Up for Successful Due DiligenceDon’t oversell

Don’t be hyperbolic

Don’t lie

Don’t hide your gaps

Don’t be unprepared

Don’t over-answer





TheArtful

ien e of Pitching™

Frank Erschen

[email protected]


Art vs. Science

Pitch Strategy


Hints & Tips




TheArtful

ien e

of Pitching™

The Long Story

Some contents are © 2012-2015 Frank Erschen, Inc.




Must: get key

points out quickly


interest throughout

unpredictable Q&A


investor story


points expected by

audience

Most Angel& Some VC

Mtgs

Some Angel& Most VC

Mtgs

Must: get key

points out very

quickly



Must: deliver a

cogent pitch &

compelling close


other pitches heard

Sept 2015 38


Most Angel

& Some VC

Mtgs

1:1

Meetings

All Quadrants:

Competitions

LONG

(usually with deck)

SHORT

(usually no deck)





1. INTRO – company, you, role, purpose of pitch

2. ELEVATOR PITCH – 15 second EP to set context, initiate interest


SetContext

and

Create

Interest

Close

or Lose

the “Sale”

The “Sell”




Elevator Pitch – Example We have developed an optimally-sized,

open, and standards compliant

operating system for the class A-compatibleand class B micro-processor units

found in low-end intelligent-enabled

appliances.





Elevator Pitch – Example

I’m Andy Preneur, founder of SmartCPU. We’ve developed a

best-in-class operating system for smart devices like your

toaster. We cost less and leave more roomfor the apps that make your toaster smart.

We’re proven and I need investment to commercialize.

We have developed an optimally-sized, open, and standards compliant operating

system for the class A-compatible and class B micro-processor units found in low-endintelligent-enabled appliances.







3. PROBLEM DEFINITION – tight description of pain you solve

4. MARKET SIZE – size of problem in the world


SetContext

and

Create

Interest









SetContext

and

Create

InterestDefining Market Size

It’s less about large numbers,

more about logic and reasonableness

Link it to the problem you solve

Top down analysis:

US census, StatsCan, US Bureau of Labor stats, ...

Bottom up analysis:

market intelligence research, original research, …








5. PRODUCT – your solution to the problem


SetContext

and

Create

Interest

Product value proposition

Context: Your product is one FEATURE of

your business!

IP*

How product solves the problem

* Here or in Competition & Differentiation section









6. WHY NOW? –original or 3rd party research


SetContext

and

Create

Interest

At this point, the audience knows enough

to be interested and intrigued

(or not)










7. GO TO MARKET – how you will turn a great idea into aninvestible, promising/successful business


SetContext

and

Create

Interest

The “Sell”

The “Sell” is core of your pitch

This section converts interest in your pitch to

interest in a follow-up meeting












SetContext

and

Create

Interest

The “Sell”

• Validate, Enter, Grow

• When – When did/will you Validate, Enter, Grow?

• Who – Customer segment?

• Where – Geography?

• How – Direct or via channel partner?

• Scale – what do you need to do to be able to scale?

VEGaS™

When, who, where, how

Validate solution

Enter marketGrow tractionand

Scale the business




Common VEGaS™ Framework

Sept 2015 48

Validation

• Point1

• Point2

• Point3

Entry

• Point1

• Point2

• Point3

Grow

• Point1• Point2

• Point3

Scale

• Point1

• Point2

• Point3

Graphically explains your

Go To Market strategy & plan

If appropriate dedicate a page

to a stage


time












SetContext

and

Create

Interest

Close

or Lose

the “Sale”

The “Sell”

In “Close or Lose” you convert interest in a

follow-up meeting to confirmation

A compelling context and sell

can easily be lost here











8. COMPETITION & DIFFERENTIATION – who you will battle & why win

9. REVENUE MODEL – how you will make money (pricing, margin)

10. PROJECTIONS – revenue, costs, cash flow


SetContext

and

Create

Interest

Close

or Lose

the “Sale”

The “Sell”















SetContext

and

Create

Interest

Close

or Lose

the “Sale”

The “Sell”

t

0

t

1

1

0





2. ELEVATOR PITCH – 15 second EP to set context, initiate interest3. PROBLEM DEFINITION – tight description of pain you solve








11. TEAM – credibility, strengths, gaps12. ASK – financing to date, today’s ask, use of proceeds

13. SUMMARY – top 3 to 5 key points from your pitch© 2012-2015 Frank Erschen, Inc.

SetContext

and

Create

Interest

Close

or Lose

the “Sale”

The “Sell”




1 INTRO - incomplete introduction

2 ELEVATOR PITCH - not crisp

3 PROBLEM DEFINITION - not focused enough

4 MARKET SIZE - irrelevant, size over substance

5 PRODUCT - selling product vs selling investment

6 WHY NOW? - not convincing

7 GO TO MARKET - incomplete thinking, not defensible

8 COMPETITION - not convincing, not researched

9 REVENUE MODEL - not clear

10 PROJECTIONS - unrealistic, unsupported

11 TEAM - incomplete

12 ASK - incomplete info, inadequate/too much $

13 SUMMARY - missed opportunity!


Typical

Topic

Traps




1 INTRO - incomplete introduction

2 ELEVATOR PITCH - not crisp

3 PROBLEM DEFINITION - not focused enough

4 MARKET SIZE - irrelevant, size over substance

5 PRODUCT - selling product vs selling investment

6 WHY NOW? - not convincing

7 GO TO MARKET - incomplete thinking, not defensible

8 COMPETITION - not convincing, not researched

9 REVENUE MODEL - not clear

10 PROJECTIONS - unrealistic, unsupported

11 TEAM - incomplete

12 ASK - incomplete info, inadequate/too much $

13 SUMMARY - missed opportunity!


Typical

Logic

TrapsNot

aligned

Not

aligned

Not

logical




Must: get key

points out quickly


interest throughout

unpredictable Q&A


investor story


points expected by

audience

Most Angel& Some VC

Mtgs

Some Angel& Most VC

Mtgs

Must: get keypoints out very

quickly



Must: deliver acogent pitch &

compelling close


other pitches heard

Sept 2015 55


Most Angel

& Some VC

Mtgs

1:1

Meetings

All Quadrants:

Competitions

LONG

(usually with deck)

SHORT

(usually no deck)















11. TEAM – credibility, strengths, gaps12. ASK – financing to date, today’s ask, use of proceeds

13. SUMMARY – top 3 to 5 key points from your pitch© 2012-2015 Frank Erschen, Inc.

A. Build your

“Long

Uninterrupted”

Pitch

Steps




Revised Order to Get Points Up Front

1. 1,2. INTRO & ELEVATOR PITCH – intro + 15 second EP

2. 11. TEAM – credibility, strengths, gaps

3. 3,5. PROBLEM & SOLUTION (PRODUCT)

4. 7,9. GO TO MARKET & REVENUE MODEL – how you will turn a great

idea into an investible, promising/successful business … and how

it makes money5. 12. ASK – financing to date, today’s ask, use of proceeds

6. 4. MARKET SIZE – size of problem in the world

7. 6. WHY NOW? –original or 3rd party research

8. 8. COMPETITION & DIFFERENTIATION – who you will battle & why win

9. 10. PROJECTIONS – revenue, costs, cash flow10. 13. SUMMARY – top 3 to 5 key points from your pitch


A. Build your

“Long

Uninterrupted”

Pitch

B. Consolidate and

Condense to get key

points up front

C. Deliver up to * in as

few minutes aspractical

Steps

*




TheArtful

ien e of Pitching™

Frank Erschen

[email protected]


Art vs. Science

Pitch Strategy


Hints & Tips

Documents

TOFI Sept. 14, 2015 PitchBootcamp: Erschen