500 Startups Japan

Monozukuri Hub Meetups- The Power of storytelling_14.Dec.2016
Speaker: James Riney, 500 Startups Japan

Transcript

1. / / How To Tell Your Story To Investors A Guide For Seed Stage Companies December 2016
2. / / / Since July 2010 1,700+ investments3 500 Startups Is the Most Active Seed Investor in the World1 $275M+ in AUM2 The various geographies highlighted in the map result from investments we have made across all 500 Startups funds. 1. CB Insight https://www.cbinsights.com/blog/2015-early-stage-investors/ 2. Approximated as of 2/23/2016 and includes the following 500 Startups funds: (a) 500 Startups, L.P. and 500 Startups-A, L.P. (together, “Fund I”), (b) 500 Startups II, L.P. and 500 Startups II-A, L.P. (together, “Fund II”), (c) 500 Startups III, L.P. and 500 Startups III-A, L.P. (together, “Fund III”), (d) 500 Startups IV, L.P. and 500 Startups IV-A, L.P. (together, “Fund IV”), (e) 500 Startups Annex Fund, L.P. (“Annex”), (f) 500 Luchadores, L.P. (“Luchadores”), (g) 500 Durians, L.P. (“Durians”), (h) 500 Mobile Collective, L.P. (“Mobile Collective”), (i) 500 Kimchi, L.P. (“Kimchi”), (j) 500 TukTuks, L.P. (“TukTuks”), (k) 500 Startups JP, L.P. ("Japan”), (l) 500 Istanbul, L.P. ("Istanbul”), (m) 500 Nordics, L.P. (“Nordics”), and (n) 500 Falcons, L.P. (“Falcons”), (o) 500 Kulfi, L.P. (“India”), and (p) 500 Fintech, L.P. (“Fintech”). 3. Approximated as of 9/12/2016 and includes first and follow-on investments from all 500 Startups funds.
3. / / / 3 Unicorns ($1B+ in valuation) Companies are a select sampling of investments across 500 Startups funds and will not be held in Fund IV. While Fund IV has not invested in the rounds of financing shown on this slide, at least one 500 Startups fund has invested in one or more rounds of financing for each of these companies. The valuations listed herein are estimated as at 12/31/2015 based on 500 Startups Valuation Policy as set out in the Appendix to this presentation. These numbers provide a snapshot of estimated valuation as at a particular time and may change. Further detail with regard to financing of companies listed on this slide can be found on Crunchbase. 40+ Centaurs ($100M ~ $999M in valuation)
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   Portfolio Highlights - The Active #500Stable * * * * * * … and 400+ Ponies ($10M ~ $99M in valuation)
4. / / / 500 Startups Japan James Riney Yohei Sawayama MANAGING PARTNER AND HEAD, 500 STARTUPS JAPAN Previously: Previously: •  Fund closedɿ2016೥2݄ •  Fund sizeɿ$30m •  Investment sizeɿFirst check at $100k - $500k, follow on at $500k - $1m LPs MANAGING PARTNER, 500 STARTUPS JAPAN
5. / / / / Most Important Rule: Get Their Attention! If you don’t remember anything else from this presentation, remember these two points: 1). Keep It Simple Stupid (KISS) 2). Build credibility quickly (Why should I pay attention to you?!)
6. / / / / 1). Elevator Pitch A) What do you do? (KISS!) Pitches from 500 Startups Accelerator Batch 18 “We build a predictive AI engine for enterprise that can handle data at a scale of Lyft or Snapchat.” - Datatron “Our application helps homeowners build their home equity twice as fast.” - Homebot “The largest Korean beauty e-commerce in Southeast Asia.” - Althea “Referral management and referral tracking software.” - Auctio
7. / / / / 1). Elevator Pitch B) Why should I pay attention to you? (build credibility quickly!) Traction: “We launched in February and already serve 10,000 customers a month!” Team: “We are a team of former colleagues from Google!” Choose the most impressive one of the following. Pick what works for you. Market: “We are attacking a $20 billion dollar market, it’s YUUUUGE!” Awards/Press: “Listed in Forbes’ World's Most Innovative Companies!” Brand Name Investors: “Our current investors include 500 Startups!”
8. / / / / 2). Explain the problem Make it obvious! Use data or visuals to get your point across quickly. “99% of people suffer from regret , and 100% don’t own a time machine.”
9. / / / / 3). What is your solution? First state it simply, dive into details later “During our PhD program at Stanford, we discovered a revolutionary recipe for donuts that reduces regret by 42%!”
10. / / / / 4). Why this? There are many solutions to a problem. Why is this the BEST or a DIFFERENTIATED solution? You can get this across in many ways… 2x2 Matrix Petal Diagram Harvey Balls Sources: •  https://orchestrate.io/blog/2015/01/30/reduce-database-operations-and-development-costs-with-orchestrate/ •  https://steveblank.com/2013/11/08/a-new-way-to-look-at-competitors/ •  http://navfund.com/blog/5-slides-we-see-in-every-pitch-deck-or-%E2%80%9Cthere%E2%80%99s-a-slide-for-that%E2%80%A6-%E2%80%9D/buckeyball …and more. Choose what works best for you.
11. / / / / 5). Why now? Ok, so this is the best, or a differentiated solution. Why is now the right timing? Why haven’t others already done this? Converging Technological Advancements Contrarian Bet Regulatory Changes Oculus Smartphone manufacturing at scale driving down prices and improving high resolution displays, sensors, CPUs and GPUs Airbnb “No one would want strangers staying in their place! No one would want to stay in a stranger’s house!” Doctor On Demand Regulations regarding telemedicine are getting looser, creating an opportunity to build business in the space.
12. / / / / 6). Why you? Ok, so the timing is now. Why are YOU the right team to execute? Strong Technical Ability Wide Network Deep Industry Experience …Or whatever. Why are you the dream team? Sources: •  Brain by Wes Breazell from the Noun Project •  Network by Barracuda from the Noun Project •  executive by Diego Naive from the Noun Project
13. / / / / 7). Extra slides (if not already included) If you didn’t already mention the following in your elevator pitch, include it now. Order from most impressive to least impressive. •  Traction •  Team •  Market •  Awards/Press •  Brand Name Investors
14. / / / / 8). Ask for money! 1). How much do you want to raise? 2). How are you going to spend it? - Build product (hire more engineers?) - Get customers (spend on marketing or hire sales?) - Order inventory (manufacturing costs?) 3). How long will it last you?
15. / / / CONTACT: James Riney james@500.co