What Startup Investors are looking for

For more information, see http://pitchingmasterclass.com

Transcript

1. PITCHINGMASTERCLASS.COM WHAT 
 STARTUP INVESTORS 
 ARE 
 LOOKING 
 FOR Image Copyright Disney, Fair Use PITCHINGMASTERCLASS.COM
2. PITCHINGMASTERCLASS.COM FIRST LET’S GET ONE THING CLEAR
3. PITCHINGMASTERCLASS.COM INVESTORS DO NOT EXIST TO GIVE YOU PERMISSION TO START NOR TO MAKE GOLD OUT OF YOUR CRAP IDEAS AND POOR TEAMS
4. PITCHINGMASTERCLASS.COM
5. PITCHINGMASTERCLASS.COM YOU ARE THE PRIZE INVESTORS ARE COMMODITIES GREAT TEAMS WITH GREAT PRODUCTS ARE RARE 
 SOMEWHERE THERE IS A BAG OF MONEY WITH YOUR NAME
6. PITCHINGMASTERCLASS.COM STOP SUCKING 
 THE F*CK UP TO INVESTORS MAKE THEM SUCK UP TO AND CHASE YOU! http://venturehacks.com/articles/no-lead
7. PITCHINGMASTERCLASS.COM • TEAM • TRACTION • TREASURE - Thomas Grota, VC DTAG TL;DR:
8. PITCHINGMASTERCLASS.COM PITCHING MASTERCLASS WITH VIDAR ANDERSEN
9. PITCHINGMASTERCLASS.COM SECONDLY RED PILL OR BLUE PILL?
10. PITCHINGMASTERCLASS.COM IS YOUR PITCH 
 A DATA PITCH OR 
 A CONCEPT PITCH? VISION VS FACTS - DID YOU ALREADY LAUNCH?
11. PITCHINGMASTERCLASS.COM PRE-LAUNCH? 
 SELL THE VISION 
 LIKE NO TOMORROW POST-LAUNCH? PREPARE TO SHOW 
 YOUR METRICS
12. PITCHINGMASTERCLASS.COM DECK CONTENTS 1. 
 COVER 2. 
 MISSION 3. 
 SUMMARY 4. 
 TEAM 5. 
 PROBLEM 6. 
 SOLUTION 7. 
 TECH 8. 
 MARKETING 9. 
 SALES 10. 
 COMPETITION 11.
 MILESTONES 12.
 CONCLUSION 13.
 FINANCING
 
 
 
 MORE?
13. PITCHINGMASTERCLASS.COM WHAT INVESTORS ARE HEARING REGARDLESS OF WHAT YOU ARE SAYING
14. PITCHINGMASTERCLASS.COM WHAT THEY HEAR • Is there money to be made here? • Are these the right people who will make me money? • How much money can we make here (with these people)?
15. PITCHINGMASTERCLASS.COM HEURISTIC VC WILL ONLY INVEST
 IF AND ONLY IF 
 TEAM IS RIGHT & 
 OPPORTUNITY SIZE 
 IS BIG ENOUGH
16. PITCHINGMASTERCLASS.COM PITCHING MASTERCLASS WITH VIDAR ANDERSEN
17. PITCHINGMASTERCLASS.COM FACTS & FIGURES KNOW YOUR KEY METRICS
18. PITCHINGMASTERCLASS.COM CAC VS LTV •For each buck you spend acquiring a customer, how many bucks does she leave behind in the whole lifespan you have her as a customer? •CAC = Customer Acquisition Cost •LTV = Customer Lifetime Value •A CAC : LTV ratio of 1 : 3 or better = good
19. PITCHINGMASTERCLASS.COM DRIVING FACTORS • HIGH CHURN RATE • LOW CUSTOMER 
 SATISFACTION • LACK OF STICKINESS • RECURRING REVENUE • SCALABLE PRICING • CROSS-SELL / UP-SELL • ADDITIONS TO PRODUCT
 CATALOGUE • LEAD-GEN FOR 3RD PARTY • SALES FORCE IN THE FIELD • OUTBOUND MARKETING • UNOPTIMIZED CAMPAIGN • WRONG TARGET AUDIENCE • WRONG CHANNEL • NO NETWORK EFFECTS • NETWORK EFFECTS • INBOUND MARKETING • FREE OR FREEMIUM • OPEN SOURCE • FREE TRIAL • TOUCHLESS CONVERSION • DIRECT MARKETING • CHANNELS • STRATEGIC PARTNERSHIPS CAC LTV
20. PITCHINGMASTERCLASS.COM GROWTH RATE
 B2C:EXPONENTIAL •“Startups = Growth” by
 Paul Graham YCombinator •What is your growth week over week? • More than 7% week over week is good
21. PITCHINGMASTERCLASS.COM ENGAGEMENT RATE
 GROWTH IS NOT ALL •“30 / 10 / 1” by Fred “AVC” Wilson •What is the % of all your registered users that will use the service or app Monthly / Daily / Concurrent (At Any Given Time)? •30/10/1 or better is good •Especially important for B2C apps
22. PITCHINGMASTERCLASS.COM COHORT ANALYSIS - 
 YOU NEED TO DO THIS READ http://cohortanalysis.com/
23. PITCHINGMASTERCLASS.COM SAAS METRICS 
 YOU NEED TO TRACK IT RIGHT • Google David Skok & Christoph Janz
24. PITCHINGMASTERCLASS.COM Your churn rate is the amount of customers or subscribers who cut ties with your service or company during a given time period. These customers have “churned.” READ: http://churn-rate.com CHURN RATE
25. PITCHINGMASTERCLASS.COM EXISTING MARKET SIZE 
 HOW TO DEFINE IT •TAM - Total Available Market
 Theoretical total market size or customer 
 mass with problem today •SAM - Serviceable Available Market
 Theoretical total market size or customer mass 
 that are able to use / purchase a solution like 
 yours right now •SOM - Serviceable Obtainable Market 
 (or TM - Target Market)
 Your target market cap or customer base within 
 the next 2-3 years, your credible ambition TAM SAM SOM
26. PITCHINGMASTERCLASS.COM NEW MARKET
 HOW TO DEFINE IT
27. PITCHINGMASTERCLASS.COM BUSINESS MODEL CANVAS 
 INSTEAD OF BIZ PLAN • Understand how 
 your business could
 work - or NOT • Get the book “Business Model Generation” to understand and communicate your Business Model
28. PITCHINGMASTERCLASS.COM PITCHING MASTERCLASS WITH VIDAR ANDERSEN