Ideas Chasing Money Vs. Money Chasing Ideas
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The document provides insights on how to effectively pitch to venture capitalists, highlighting important elements such as market potential, customer problems, and unique solutions. It emphasizes the critical questions to address within a 14-slide presentation, including mission statements, competitive landscapes, and financial projections. Additionally, it outlines the difference between VCs and angel investors in terms of evaluation and investment strategies.
![CONTACT US Baris Karadogan CEO 800 Menlo Ave, Ste 220 Menlo Park CA, 94025 650-325-9600 [email_address] www.hipdigitalmedia.com](https://image.slidesharecdn.com/finalnxne2-110620135917-phpapp02/85/Ideas-Chasing-Money-Vs-Money-Chasing-Ideas-26-320.jpg)
Ideas Chasing Money Vs. Money Chasing Ideas
- 1. FUSE Marketing Group June, 2011
- 2. Baris Karadogan CEO Hip Digital & Venture Capitalist Vs Ideas Chasing Money
- 3. Garo Keresteci CEO FUSE Holdings & Industry Angel Money Chasing Ideas
- 5. FIND FILTER EVALUATE INVEST
- 7. A Great VC Pitch June, 2011
- 8. Hip Digital Venture backed silicon valley technology company Offices in five locations in North America 2500+ online programs, reaching 250M consumers Deliver proven ROI in all engagement metrics 85% of our customers renew for additional programs
- 9. Background CEO of Hip Digital 10 years in Venture Capital/Private Equity Fuse Capital U.S. Venture Partners Stanford Graduate School of Business 3Com/USRobotics Stanford Electrical Engineering Recent Exits Like.com, Spectralinear, Beceem, Redline
- 10. Topic For The Day How to pitch to VC’s The questions you have to ask yourself
- 11. Format Of This Presentation 14 Key slides, and what each should say. Example Right Answers “ What is the VC is thinking?”
- 12. Mission Statement One liner about the company “ Social Rewards Platform” “ Why should I be interested in this?”
- 13. Market How big is it? How is it growing? $100B online marketing spend Rewards and promotions are a growing piece. “ Can I build a billion dollar company?”
- 14. Problem How big is the customer’s problem? Traditional advertising getting less effective No good way to engage constituents on Facebook “ Can I get good gross margins?”
- 15. Solution To Problem What is your unique solution? Digital Content Rewards on Facebook Use content to engage consumers “ Why hasn’t anybody done this before?”
- 16. Team Name Experience Team has done it before “ Would I bet my children’s future on them?”
- 17. Technology What is the key technology? Is it defensible? Promotional Pricing Analytics Self-serve backend “ Will it take 1 or 5 years to do it?”
- 18. Customers Who is paying for the product? Fortune 500 companies 2500+ promotions reaching 250M people “ Does the value proposition hold water?”
- 19. Per Customer Economics Most Important Slide… Universal across all businesses What will customers pay? What is the cost of goods? What are costs to acquire customer? What are costs to service customer? What is churn? “ What’s a customer worth?”
- 20. Go To Market How do you get in front of the customer? Direct, agencies, and now online “ How will the channel affect the company?”
- 21. Milestones When is beta, when is product ready? This round will get us to $50M/yr in revenues “ Where will this financing get me? Can I exit or get a step up?”
- 22. Financials Income Statement, Balance Sheet, CF Our numbers are realistic even if they are off by 2x. “ Are these numbers credible?”
- 23. Competition 2x2 matrix Most important variables in the axes It will take 3 years for others to catch up. “ Does this team understand their competition?”
- 24. Financing History How much money raised to date? What are you raising now? We’ve been frugal and will continue to be so. “ Who are these investors? Do I trust them?”
- 25. Why This VC? Why do you want this investor? You can help us with xyz relationships. “ Flattery will get you anywhere!”
- 26. CONTACT US Baris Karadogan CEO 800 Menlo Ave, Ste 220 Menlo Park CA, 94025 650-325-9600 [email_address] www.hipdigitalmedia.com
- 27. Garo Keresteci
- 31. FUSE Marketing Group awarded as one the Top 50 Best Small and Medium Employers in Canada for 2009 & 2010
- 32. 2003 - 2011
- 34. Infrastructure: Digital Talent Training Work Environment Experiential Fort e
- 35. Stock Options!
- 36. www.promotionalcurrency.com www.hipdigital.com www.quizative.com www.fusehealth.com www.softgravity.com
- 37. Ideas Ideas we invest in Filter
- 38. 1 + 1 = 3
- 39. PASSION ACHIEVEMENT INTEGRITY COURAGE COLLABORATION
- 42. Common Lessons Learned
- 43. FIND VC: Deals come to them Angel: Seek opps related to our existing businesses
- 44. FILTER VC: Potential $, investing themes Angel: Same, plus strategic fit
- 45. EVALUATE VC: Rigorous due diligence around the $, technology, people Angel: Same plus 1+1=3, work together over some period
- 46. INVEST VC: Preferred shares, board control, significant and/or majority share Angel: 50/50, some controls built into deal