Home > Career, External Articles, Life at Columbia > David Rose (@davidsrose) on venture pitch presentations…

David Rose (@davidsrose) on venture pitch presentations…

November 27, 2011 Leave a comment Go to comments

This is from my live twitter feed from this presentation available on @moidtweets.

Presentations have to be KR(i)SP:
K – Knowledge
R – Respect
S – Skill
P – Preparation

What do investors look for?
Investors look for
1. Large and growing market
2. Scalable business model – start small but be replicable over time and profitable
3. Competitive advantage – what is built in to sustain the economics of the business model (e.g., IP, entry barriers)
4. External validation – someone else also needs to vouch for your business model and say it is a good idea
5. Reasonable valuation – risks in start-ups are so high that angels look for returns between 10x to 30x to get 25% IRR
6. Great people – neither the techie, UI designer, salesperson, or the biz/fin guy, but solely the entrepreneur – YOU.

Why are YOU standing there?
It’s important for investor to bet on the jockey and not the horse.

Characteristics of a desirable entrepreneur:
– Integrity
– Passion
– Experience (starting a business)
– Knowledge (domain expertise)
– Skills
– Leadership
– Commitment
– Vision (to create something)
– Realism
– Coachability

Three things to get the venture pitch presentation right:
1. Content
2. Presentation
3. Delivery

1. Content
Start with a story, an analogy, a captivating but very short video, and continue reinforcing the impression.
How to keep investor emotions positive: logical progression, things they know or understand, validators, and believable upside.
What spoils investor emotions: untrue or incomprehensible content, things that make them think, internal inconsistencies, and typos.

2. Presentation
Structure of the presentation:
– Logo/name
– Context setter
– Management team
– Market/pain
– Product/solution
– Business model
– Customers
– Getting to market
– Competition
– Unique advantage
– History and status
– Financial overview (primary driver to bring revenues and 4-year financials)
– Amount being raised & valuation (only if there is a term sheet)
– Closing remarks

“Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away” – Antoine de Saint-Exupery

3. Delivery
In a pitch presentation, use images, have a separate leave-behind presentation with bullet points that show the content after speaking. While delivering the presentation, you can monitor the slide flow by using programs like keynote on Mac to get dual monitors.

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  1. March 17, 2012 at 8:53 am
  2. March 17, 2012 at 8:55 am

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