Trajectory Startup Program - Pitching Your Story
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The document outlines a framework for pitching to investors with a focus on structuring presentations using 10 or 12 slides, detailing critical elements such as the problem, solution, market analysis, traction, and clear asks from investors. It emphasizes the importance of storytelling and dialogue during the pitch while providing guidelines for supporting slides and fundraising fundamentals. Additionally, it covers aspects of investor relations, fundraising stages, and key considerations for building relationships with potential investors.
Trajectory Startup Program - Pitching Your Story
- 1. Copyright, DKParker, LLC 2020 Trajectory – Pitching Dave Parker www.dkparker.com @DaveParkerSEA
- 2. Copyright, DKParker, LLC 2020 Agenda ¤ Intro ¤ Use Case ¤ Telling Your Story in 10/12 Slides ¤ Story Arc ¤ Fundraising Fundamentals ¤ Supporting Slides
- 3. Copyright, DKParker, LLC 2020 About Dave ¤ 5X founder, Board Member, former SVP Programs at UP Global (Startup Weekend + Startup America) ¤ Startup Next creator ¤ Startup Week ¤ Author – “Trajectory: Startup – Ideation to Product Market Fit” ¤ 10 transactions – 8 sell side, 2 buy side ¤ VC/Investor
- 4. Copyright, DKParker, LLC 2020 Use Case
- 5. Copyright, DKParker, LLC 2020 Two decks Contrived ¤ Limited time ¤ Video/Stage ¤ Required content ¤ Structured pitch Conversation ¤ Conference room ¤ Set time – 60 Minutes? ¤ Group
- 6. Copyright, DKParker, LLC 2020 Begin with the end in mind ¤ What question do you want them to ask when they are done? ¤ How to get a check into your deal? ¤ What do you do again? ¤ Obvious questions by lack absence ¤ Price ¤ Traction ¤ Competition
- 7. Copyright, DKParker, LLC 2020 10 or 12 Slides?
- 8. Copyright, DKParker, LLC 2020 Two Use Cases - Two Decks Slides for Stage ¤ 10 Slides ¤ It’s a contrived event ¤ Check boxes for hitting required elements ¤ Supporting Slides Slides for Conf Room ¤ 12 Slides ¤ It’s about the dialog and understanding the investor questions ¤ Supporting Slides
- 9. Copyright, DKParker, LLC 2020 10/12 Slides for Your Pitch 1. Title, Value Proposition, Contact Info 2. Presentation Overview* 3. Problem 4. Solution 5. Market Size 6. Competitive Analysis* 7. Traction/Timing – why you, why now? 8. Product Roadmap/Demo How You Make Money/Key Metrics 9. Go-To-Market 10. Secret Sauce/Moat/IP* 11. Team 12. Clear Ask/What do you need from Flat6 *for conf room pitch. Supporting Slides – Architecture, etc. Blog Post
- 10. Copyright, DKParker, LLC 2020 Title Slide ¤ Logo ¤ Tagline ¤ Contact info ¤ Might be duplicated on final slide ¤ Add slide numbers – for them to references, if you’re not screen sharing ¤ Opportunity to position and talk traction
- 11. Copyright, DKParker, LLC 2020 Presentation Overview ¤ Agree on what you will discuss ¤ Ask if there is anything else they want to cover ¤ Start reading the room – who are the decision maker and influencers ¤ Give permission to ask questions as you go – this is a conversation ¤ The deck serves to guide the conversation
- 12. Copyright, DKParker, LLC 2020 Problem ¤ Look for the confirmation and agreement on the problem ¤ If it’s obvious – move on quickly ¤ If it takes some explanation – lead with “what you might not know…” ¤ Don’t ask for confirmation – human nature will get agreement but not understanding
- 13. Copyright, DKParker, LLC 2020 Solution ¤ Lead with product (not platform or mature state) ¤ Build the case for basecamp (launch) ¤ Show the peak of the mountain (scale)
- 14. Copyright, DKParker, LLC 2020 Market ¤ A good market slide has taken hours to build and 30 seconds to explain! ¤ Don’t over do it ¤ Look for confirmation on the TAM and quickly move to the go-to-market or Launch Market size ¤ Given features, audience, language, etc
- 15. Copyright, DKParker, LLC 2020 Competitive Analysis ¤ Overview version – details in supporting slides ¤ Format ¤ Four Quadrant ¤ You’re top right ¤ Not too contrived of an axis ¤ Check boxes ¤ You are first column ¤ Know how much capital they have raised
- 16. Copyright, DKParker, LLC 2020 Traction – Timing ¤ If you have traction ¤ Revenue ¤ Customers ¤ Unit Economics metris ¤ Why you, why now? ¤ What are the meta market factors in your favor
- 17. Copyright, DKParker, LLC 2020 Product Roadmap – Demo ¤ Show the product ¤ Screen shots ¤ Vs video or live demo ¤ Show the compelling features ¤ Don’t show basics ¤ Registration ¤ Check out
- 18. Copyright, DKParker, LLC 2020 Go-to-Market (GTM) ¤ What’s your marketing and sales plan ¤ What data do you have now ¤ What have you tested ¤ Do you have distribution ¤ Lead with data if you have data - unit economics matter, earlier the better
- 19. Copyright, DKParker, LLC 2020 Secret Sauce – IP/Moat ¤ Show you are thinking about defense - you don’t have to have the answers ¤ Speed – knowledge of the customer ¤ What makes your position defensible? ¤ The team ¤ The tech ¤ The GTM
- 20. Copyright, DKParker, LLC 2020 Team ¤ Lead with co-founders ¤ Key employees ¤ Planned hires in the narrative but not on the slide ¤ Advisors – meh – might matter but don’t mean a lot
- 21. Copyright, DKParker, LLC 2020 Clear Ask ¤ What do you need – in addition to capital ¤ Advice ¤ Access to their network ¤ Referrals to customers ¤ Help in hiring ¤ You have an agenda – tell them what it is – actionable ¤ Gather questions
- 22. Copyright, DKParker, LLC 2020 Supporting Slide
- 23. Copyright, DKParker, LLC 2020 Supporting Slides ¤ Financial detail – drilling down on the “hocky stick” ¤ Intellectual Property ¤ Competitive Analysis detail ¤ If you’re out of time on a contrived deck, push obvious questions to supporting slides
- 24. Copyright, DKParker, LLC 2020 Supporting Slides – Cont. ¤ Know the order of the slides
- 25. Copyright, DKParker, LLC 2020 Story Arc
- 26. Copyright, DKParker, LLC 2020 Story Arc ¤ Customer’s life before and after your product ¤ One customer use case – the most compelling ¤ Not three or four – makes it sound like you don’t know ¤ Use transition
- 27. Copyright, DKParker, LLC 2020 Fundraising Fundamentals
- 28. Copyright, DKParker, LLC 2020 Fundraising 101 ● Stage appropriate capital = what’s the right money at the right time? ○ Early – Angels, early-stage VCs, ○ Later – Large venture funds ● Control shifts – Board roles, deal terms ● Dilution: every round of funding you will sell 25- 35% of new shares ● Bad boards = bad enterprise value
- 29. Copyright, DKParker, LLC 2020 Raising for What? ¤ 18 months of runway ¤ Not too short ¤ To hit milestones ¤ Product ¤ Customers ¤ “Use of proceeds”
- 30. Copyright, DKParker, LLC 2020 Angels ● Invest in you and your passion ● Like the market or idea ● Have made money in the sector before ● Something to talk about at a cocktail party! ● Deal type ○ Convertible note with a cap ○ Pro-rata participation (keep my % going forward) ○ Highest risk – least educated (F&F) should be best deal
- 31. Copyright, DKParker, LLC 2020 Early Stage = Risk Capital ● Know your numbers, if you don’t have your numbers know your hypothesis (have a position) ● Seed stage VC’s are investing other people's money ○ Charter and Thesis ○ Stage, vertical market, size, geography ○ 10% (+/-) stakes plus syndicates ● VC perspective - Elusive deals need to be found ○ Revenue but Pre-product market fit ● ”Return the Fund” deals that can produce >10X
- 32. Copyright, DKParker, LLC 2020 Later Stage = Growth Capital ● Post product market fit ● $10K in marketing spend = Internal rate of return (IRR) of how many days? ● MBA’s calculate returns – cash on cash ● Strategics aren’t valuation sensitive, but will be slow ● Bigger checks – 20% stakes
- 33. Copyright, DKParker, LLC 2020 First Impressions Matter ● Targets – build a list of targets, look for LinkedIn and/or email introductions ● They have invested in your market/stage in the past ● They have Board experience for your stage ● They can help with strategic introductions ○ Investors ○ Customers
- 34. Copyright, DKParker, LLC 2020 Fundraising Process ● Asking for advice vs cash ○ Who do you know that would like out type of deal ○ What other things would you like to see us complete before we talk again ● Deals that get closed are pulled by the investor, not pushed by you ● Find your lead investors – keep the others warm
- 35. Copyright, DKParker, LLC 2020 Not
- 36. Copyright, DKParker, LLC 2020 Pitching Fake Grimlock
- 37. Copyright, DKParker, LLC 2020 Final Do’s and Don’ts Do ● Keep your eye on the ball – don’t miss your numbers ● Manage the process ● Qualify your investor ● Create optionality ● If there’s an ELEPHANT room, call it out Don’ts ● Get < 6 Month of capital ● Hide the ball on any bad news ● Be too transparent ● Let the investor miss a deadline – escrow example
- 38. Copyright, DKParker, LLC 2020 dave@dkparker.com www.dkparker.com @DaveParkerSEA
- 39. Copyright, DKParker, LLC 2020