“Southwest Airlines business plan was conceived on a cocktail napkin. Compaq Computers “portable” design was originally sketched on a restaurant napkin. An investor presentation can equally be simplified by following some guidelines that offer thoroughness with simplicity,” the angel group says.
Specifically, Tech Coast Angels lays out the seven “P’s” for entrepreneurs to include on slides when pitching a VC:
- Pitch: “Gear this first slide to the proverbial “elevator pitch”: if you were able to pitch to an investor on the average elevator ride what could you say in that short time to deliver the opportunity, capture their curiosity and get a second meeting?”
- People: “Want to convey to audience that this team has the experience to deliver on its promises. Any prior examples of team members work history to reinforce that theme would be ideal here. Want investors left with feeling that the people won’t be the problem with this investment.”
- Pain: “Investor is trying to determine whether this problem is a real pain for the customer. Will the customer pay for this product? Will the investor feel that the market/opportunity is large enough for a future high multiple return?”
- Product: “This slide should give an overview of the product and how the customer would use this in their environment. It should be a description understandable to most investors, save deep technical descriptions for Q&A or later meetings. The investor wants to come away with a feeling the product is unique, can solve the problem described and customers will buy it.”
- Players: “The investor is trying to ascertain why a customer would change from what they are doing today and use a startup’s product. What will you be able to do to fight off better known and funded competitors? After this slide, the investor needs to believe the customer will see the value in this product versus competition. Again, will the customer buy it?”
- Projections: “This may take two slides (one business model/marketing/sales and one for financials). Again, give an overview you can always go into detailed information in Q&A with more slides. Investors want to see the business model and be convinced it can make money in the long run.”
- Proposition: “Detailed questions on possible terms etc. can be saved for Q&A or follow on meetings. Investor wants to know what % and price: you need to convince investor that the valuation/valuation range is reasonable, given opportunity, team and product along with comparables to other deals.”
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Originally published January 11, 2010
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