the Pitch How To Think Like an Investor

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1 the Pitch How To Think Like an Investor

2 Raising money from investors for your startup is challenging at any stage and requires a great pitch, even for experienced founders with significant traction for their company. C L E N C H T H E P I T C H The good news is that there s a formula for pitching your deal that has helped startup founders raise millions. Read on to learn how to THINK LIKE AN INVESTOR 2

3 Welcome LET S GO! HOW TO PITCH YOUR IDEA & WIN. You Will Learn 01 Thinking Like an Investor 02 Calculating Your Valuation 03 What Investors Need to Hear 04 Closing Like A Pro

4 Lesson Number One GREAT STARTUPS DON T FUND THEMSELVES. BANKROLL YOURS LET S ROCK

5 Getting others involved in your success is a sure-fire way to begin building traction and popularity for your product. C L E N C H T H E P I T C H Investing in your own dream shows dedication, but to be a real market competitor, you need to be able to move quickly and market across multiple, suitable channels. Getting others to buy into your idea also serves as proof that your idea has some validity which can really jumpstart your marketing creativity. The first step is making sure you ve got on the right thinking cap: the investor s cap. 5

6 THINK LIKE AN INVESTOR 01 Thinking Like an Investor

7 Go Beyond the Basics DON T JUST STAND OUT. MAKE YOUR GOAL CONNECTION. EMOTIONALLY LOGISTICALLY INTELLECTUALLY ENERGETICALLY

8 Understand Your Investors Interests: CONNECT EMOTIONALLY, INSPIRING THEM TO BE PART OF YOUR STORY. 8

9 Make Sure Your Idea Is Grounded: CONNECT LOGISTICALLY SHOW THE MARKET EXISTS FOR YOUR SOLUTION.

10 Make Sure Your Idea Is Grounded: CONNECT INTELLECTUALLY, CONVEY A REALISTIC VISION. 10

11 CONNECT ENERGETICALLY, A MEETING OF THE MINDS To be a true success, it must be a win-win 11

12 Lesson Number Two NUMBERS ALWAYS TELL THE TRUE STORY. EVERY TIME LEAD WITH THE DIGITS

13 NUMBERS NEVER LIE. SO MAKE SURE YOURS TELL THE TRUTH. A little research can go a long way C L E N C H T H E P I T C H Valuation is a measurement used to gauge the level of a company s potential in regards to a particular investment. It does not show the true value of the company. It identifies the value an investor gets for their involvement. This number can be based on several considerations. Following are just a few of them 13

14 KNOW YOUR REAL WORTH 02 Calculating Your Valuation

15 THE MARKET FOR YOUR PRODUCT ARE THERE ACTUALLY PEOPLE WHO WANT WHAT YOU VE GOT?

16 ACTUAL PRESENT VALUE SALES TO DATE AND GROSS MARGINS

17 PRODUCT VIABILITY & PROFIT MARGIN HOW MUCH GROWTH POTENTIAL IS THERE?

18 TOTAL OPERATING COSTS OVERHEAD, INVENTORY, STAFF, MARKETING, ETC.

19 PERCENTAGE NEEDED TO BE PROFITABLE HOW MUCH MAKES THIS WORTH IT FOR THE INVESTOR?

20 KNOW YOUR VALUE(-ation) AND DON T INFLATE IT.

21 Lesson Number Three IT ALL COMES DOWN TO LIKEABILITY AND TRUST SURPRISED? Genuine emotion always shines through

22 When was the last time you gave some money whom you did not like? How often do you invite people to your home who you do not trust? Our lives have never stopped being a popularity contest and attaining investors for your idea is no exception to the rule. C L E N C H T H E P I T C H Now that business is also personal, don't forget to take care of these little things 22

23 IT S ALL ABOUT TRUST 03 What Investors Need to Hear

24 VIABILITY C L E N C H T H E P I T C H WHAT MAKES A GOOD IDEA A GREAT INVESTMENT THREE FUNDAMENTALS PROPRIETARY PRODUCT FEATURES SCALABLE BUSINESS MODEL RATE AND LIKELIHOOD OF RETURN 24

25 Show That You Know Your Stuff YOU UNDERSTAND YOUR BUSINESS, YOUR MARKET, AND YOUR ACTUAL GROWTH POTENTIAL

26 MAKE SURE THEY KNOW YOU ARE IN IT C L E N C H T H E P I T C H TO WIN IT AND YOU RE COMMITTED LONG TERM GIVE THE FULL STORY OF YOUR VISION 8

27 Super Power: WORD OF MOUTH IF AT ALL POSSIBLE, SHARE RECOMMENDATIONS AND REFERALS FROM PEOPLE WHO THEY ARE FAMILIAR WITH

28 PROVE YOU VE THOUGHT ABOUT HOW THEY WILL GET THEIR MONEY BACK Their goal is a return on investment 28

29 SHOW YOU HAVE A PLAN FOR THE FUTURE OF YOUR PRODUCT, BE IT EXIT OR EXPANSION

30 Lesson Number Four THEY ACTUALLY WANT TO YES TO YOUR PITCH. HELP THEM THE CLOSE OF A LIFETIME

31 THEY DIDN T SHOW UP TO SHOOT YOU DOWN... Keep in mind that a solid closing is just as important as a strong opening, and you ll have the tools you need. These final moments are your opportunity to clear up any confusion, ease any uncertainties, and reiterate why this deal will be the best one they ve made thus far. Keep it honest, maintain your focus, use facts and real world data, and let your final words be from a place of confidence and enthusiasm. Pull out the big guns and help them say, YES! 31

32 THE ART OF THE CLOSE 04 Wrapping Up Like A Pro

33 GIVE THEM A HIGHLIGHTS SUMMARY OF YOUR PRESENTATION AND AN INITIATION ACTION LIST MAKE SURE THEY KNOW WHAT S UP NEXT

34 PRODUCTS BUYERS WHAT you re selling, why it s a great idea, and how it is unique in its market TAKE AWAYS Be sure that your audience gets a clear understanding of each of these important areas: WHO is looking for what you ve got to offer and the buying power of that segment WHERE your financials currently stand and how you plan to prime them in the future RETURN REVENUE HOW you propose your investors become involved and what they can expect in return MAKING A MASTERFUL PITCH 34

35 MAKE THEM AN OFFER THEY CAN T REFUSE. CLOSE BY COVERING ALL THE BEST POINTS OF YOUR PITCH AND SHOW THEM, STARTING RIGHT NOW, THAT YOU WILL DELIVER ON YOUR PROMISE. PAINT THE PICTURE OF THEIR FUTURE

36 DON T WAIT FOR C L E N C H I N G T H E P I T C H THEM TO RESPOND. TELL THEM WHAT THEY NEED TO DO NEXT TO TAKE ADVANTAGE OF THIS AMAZING OPPORTUNITY! 36

37 Bonus Lesson One DON T IGNORE DESIGN GOOD BRANDING CAN HELP SALES. Remember, it matters how you look.

38 Bonus Lesson Two DON T FORGET THE SAMPLE. TRY IT AAANND LIKE IT. If at all possible, make sure they try out your idea. Even if it s just a mockup.

39 Ready to get moving? GO SHOW EM WHAT YOU VE GOT! Slides By: BRIDGETTE BRYANT