This is a presentation by Alex Raczenko, EIR at Innovate Calgary in Alberta at Startup Weekend on July 12, 2013. Alex discusses the 12 key questions every entrepreneur needs to answer before raising outside capital. Following this presentation you will be able to perfect your investor pitch.

1. INNOVATOR’S
TOOLKIT
Perfecting The Investor Pitch
Alex Raczenko
Entrepreneur in Residence

2. How
can
you
tell
an
Entrepreneur
is
Pitching?

3. Their
lips
are
moving!

4.
Pitching
is
KEY
to
Entrepreneurial
success

5. Do
it
well...
People
Invest
in
YOU

6. Do
it
poorly...
They
will
cross
the
street
to
avoid
you

7. What’s
it
about?
v A
Good
Pitch
IS
NOT
about....
§ What
you
want
to
say

8. What’s
it
about?
v A
Good
Pitch
is
ALL
about....
§ What
your
audience
NEEDS
to
hear
§ Delivered
in
THEIR
language

9. What’s
it
about?
v A
Good
Pitch
is
ALL
about....
§ To
moJvate
them
to
agree
to
your
ASK

10. What’s
it
about?
v A
Good
Angel
INVESTOR
Pitch
IS
NOT
about
Selling....
§ Your
TECHNOLOGY

11. What’s
it
about?
v A
Good
Angel
INVESTOR
Pitch
IS
NOT
about
Selling....
§ Your
PRODUCT

12. What’s
it
about?
v A
Good
Angel
INVESTOR
Pitch
is
ALL
about
Selling....
§ The
COMPANY
you
will
build
around
the
technology
/
Product

13. What’s
it
about?
v A
Good
Angel
INVESTOR
Pitch
is
ALL
about
Selling....
§ Your
PLAN
to
turn
their
$1MM
investment
into
a
$10
-­‐
$20
MM
Return
On
Investment
in
5
years

14. More
than
a
story....
v
From
a
company
perspecJve:
§ Build
a
manageable
and
acJonable
• Preliminary
Business
Plan
• Investor
pitch

15. More
than
a
story....
v
From
a
company
perspecJve:
§ Build
a
manageable
and
acJonable
• Preliminary
Business
Plan
• Investor
pitch
§ Develop
strong
foundaJon
for
related
pitches
• Customer,
Partner,
Supplier...
Etc.

16. More
than
a
story....
v
From
a
company
perspecJve:
§ Build
a
manageable
and
acJonable
• Preliminary
Business
Plan
• Investor
pitch
§ Develop
strong
foundaJon
for
related
pitches
• Customer,
Partner,
Supplier...
Etc.
§ Align
and
balance
Market,
Business
and
Technology
Teams
• Market
Leads
• Business
and
Tech
follow

17. More
than
a
story....
v
From
a
personal
perspecJve...
§ Develop
Confidence
• Find
your
voice...

18. More
than
a
story....
v
From
a
personal
perspecJve...
§ Develop
Confidence
• Find
your
voice...
§ Develop
CLARITY
and
VISION
• Know
WHERE
you
are
going
and
WHY

19. More
than
a
story....
v
From
a
personal
perspecJve...
§ Develop
Confidence
• Find
your
voice...
§ Develop
CLARITY
and
VISION
• Know
WHERE
you
are
going
and
WHY
§ Learn
to
LEAD
• Align
your
Team

20. More
than
a
story....
v
From
a
personal
perspecJve...
§ Develop
Confidence
• Find
your
voice...
§ Develop
CLARITY
and
VISION
• Know
WHERE
you
are
going
and
WHY
§ Learn
to
LEAD
• Align
your
Team
§ Find
your
inner
CEO...
§ Build
your
Roadmap
to
SUCCE$$....

21. More
than
a
story....
GET
FUNDED!

22. A
GREAT
place
to
Pitch
in
Alberta...

23. A
GREAT
place
to
Pitch
in
Alberta...
§ Lead
By
Henry
Kutarna
§ 200+
Members
§ Personally
screened
and
looking
for
good
deals
§ Over
$30MM
Raised
in
past
3
years

24. Not
Easy...
Over
200
deals
screened
annually

25. Only
the
BEST
survive
Over
200
deals
screened
annually
Only
8-­‐12
Deals
get
to
Pitch...

26. Who
do
you
pitch
to...
If
you
want
their
Investment..
Your
pitch
MUST
answer...

27. The
12
KEY
QuesMons
1. Why
should
I
pay
a_enJon?
The
IntroducJon
2. Do
you
know
your
customer
and
their
pain?
The
Problem
3. Do
you
take
the
pain
away?
The
SoluJon
4. Do
you
know
your
Target
Market?
The
Market
5. Who
else
is
doing
this
and
why
pick
you?
The
CompeJJve
Difference
6. Is
product
ready
and
does
it
create
Barriers?
The
Technology
7. Can
you
find
and
get
customers?
The
Approach
to
Market
8. How
does
money
flow
from
customer
to
you?
The
Revenue
Model
9. How
much
money
will
we
make?
The
Forecast
10. Do
you
have
a
plan
for
my
money?
The
Milestones
11. Can
you
execute?
The
Team
12. How
much
$
do
you
need
and
what's
my
ROI?
The
ASK/Exit

28. Business
Model
Canvas
Alignment
1. The
IntroducJon
2. The
Problem
3. The
SoluJon
4. The
Market
5. The
CompeJJve
Difference
6. The
Technology
7. The
Approach
to
Market
8. The
Revenue
Model
9. The
Forecast
10. The
Milestones
11. The
Team
12. The
Ask
/Exit

29. Business
Model
Canvas
Alignment
1. The
IntroducJon
2. The
Problem
Value
ProposiJon
3. The
SoluJon
Value
ProposiJon
4. The
Market
Customer
Segments
5. The
CompeJJve
Difference
Customer
RelaJonships
6. The
Technology
Key
Partnerships
7. The
Approach
to
Market
Channels
8. The
Revenue
Model
Revenue
Streams
9. The
Forecast
Cost
Structure
10. The
Milestones
Key
AcJviJes
11. The
Team
Key
Resources
12. The
Ask
/Exit
Key
AcJviJes

30. 1.
The
IntroducMon
v
High
level
summary
of
answers
to
the
12
quesJons
§ Basis
for
your
Elevator
Pitch
v Targeted
to
Investor
audience
§ WHAT”S
IN
IT
FOR
THEM
v Capture
their
FULL
a_enJon
FAST.....
§ OPEN
WITH
YOUR
ACES......

31. 2.
The
Problem
v Understand
your
Customer
PAIN
§ Describe
“A
Day
In
The
Life”
BEFORE
your
Product
§ For
ALL
customer
stakeholders
§ Across
the
enJre
Target
Value
Chain
§ QuanJfy
the
Pain
for
each
stakeholder,
for
Target
Value
Chain
and
for
Market
§ Show
your
target
customers
are
SCREAMING
for
Your
soluJon
v Show
you
know
the
buying
moJvaJon

32. 2.
The
SoluMon
v Describe
how
you
take
Customer
PAIN
away
§ Describe
“A
Day
In
The
Life”
AFTER
your
Product
§ For
ALL
customer
stakeholders
§ In
the
enJre
Value
Chain
you
are
targeJng
§ Qualify
Pain
ReducJon
-­‐
Reduce,
eliminate,
OpJmize
§ Qualify
Gain
addiJon
–
enhance,
add,
expand
§ QuanJfy
your
VALUE
PROPOSITION
(
$$$VP$$$
)
for
§ Each
stakeholder
§ EnJre
Value
Chain
§ Company
§ Target
Market

33. 4.
The
Market
v Describe
the
market
for
your
soluJon
§ How
many
customers
exist
for
your
product
§ How
much
do
they
spend
now
on
soluJons
v Show
your
Strategy
to
Market
Dominance
§ Show
AcJonable
Target
Market
SegmentaJon
§ Show
Current
Market
PenetraJon
§ Show
your
market
penetraJon
targets
and
Jmeframes
v Describe
market
sensiJviJes
and
Growth
Rate

34. 5.
The
CompeMMon
v Name
your
Direct
CompeJtors
v Show
your
CriJcal
DifferenJaJon
§ Why
pick
you
Today?
v Show
you
deliver
compelling
VALUE
v Describe
past
success
against
compeJJon
v Show
TRACTION

35. 6.
The
Technology
v Show
your
product
§ Product
status...
Test,
producJon,
delivery
dates
§ Scalability
Model
v Describe
Manufacturing
plan
and
partnerships
v How
do
you
create
barriers
to
entry?
§ Secret
Sauce
§ IP
strategy
§ Strong
exisJng
Partnerships
/
Channels
v Describe
how
IP
will
moJvate
AcquisiJon

36. 7.
Approach
to
Market
v How
do
you
build
Awareness
in
Target
Market
§ Web
site,
tradeshows,
Social
Media,
press
§ Awareness
Scale
Up
Strategy
v How
do
you
saJsfy
demand?
§ Direct
sales
-­‐
Sales
Force
§ Channels
–
What
they
bring
to
you
§ Market
Scale-­‐up
Strategy
v
Describe
sales
cycle
and
Funnel

37. 8.
The
Revenue
Model
v Show
unit
pricing
v Describe
cash
flow
model
§ SAAS
–
Recurring,
SubscripJon,
Support,
Services
§ Billing
cycles
v Show
how
$
flows
from
customer
to
you
§ For
each
channel
§ Show
your
target
margins
§ Show
how
much
your
channels
make
v Show
your
gross
/
net
margin
targets

38. 9.
The
Revenue
Forecast
v Show
5
year
Revenue
Targets
§ Top
line
Revenue
§ Costs
§ EBITDA
v Show
related
Customer
or
Unit
counts
v Show
key
revenue
growth
events
v
Show
anJcipated
financings
v Show
breakeven
point

39. 10.
The
Milestones
v Show
major
OperaJonal
Milestones
only
§ Varies
according
to
company
§ Show
Time
Line
v Historically
–
what
have
you
done
so
far
v Future
–
show
you
have
a
plan
for
Growth
v Show
you
have
a
plan
for
their
$$
v Overlay
Phases
of
strategy
over
appropriate
milestones

40. 11.
The
Team
v Show
key
execuJves
§ Show
WHY
they
are
ideal
for
this
company
§ Show
what
roles
they
play
in
company
§ Show
team
balance
–
Market,
Business,
Tech
v Show
current
Board
members
§ Advisory,
Fiduciary
v Show
external
partners
§ Legal,
AccounJng,
manufacturing,
channels
v Show
outstanding
recruiJng
needs

41. 12.
The
Ask
v Show
Money
already
invested
§ Founders,
Friends
and
Family
§ Total
Prior
Raises
§ Grants,
loans
§ Restate
this
years
Revenues
v Specify
THE
ASK
§ How
much
$
are
you
looking
for
§ what
%
investment
will
buy
§ preferred
investment
mechanism
v Show
use
of
proceeds
–
high
level
%
only
v Discuss
EXIT
Strategy
Show
comparables

42. More
info....
WWW.Innovatecalgary.com