This lecture discusses how to build and deliver an effective pitch to help you find financing for your entrepreneurial venture or to sell your product to customers.

1. Presented By:
Peter Evans !
Entrepreneur-In-Residence, MaRS!
Founder & CEO, Speakerfile!
@techmarketer
MaRS Entrepreneurship 101 - May 8, 2013
@speakerfile
The Investor Pitch!

2. CMA
Summer
School
2009
[Course
Title]
2

3. Other
People’s
Money
Fundamentally Changes Everything

4. The Investment Paradox
Getting to
!
NO!
Investor!Entrepreneurs!
Getting to
!
YES!

5. Venus & Mars?
Successful!
Track
Record
Compatible!
Match of
Size/Stage/
Geography
Strategic!
Relevant
Portfolio
Friendly!
No directly
competitive
investments
Capacity!
Has funds
to invest
The Right!
Investor!
Entrepreneurs want…
Investors want...
Platform!
Significant "
Technological"
Advantage
Market!
Sizable and "
Addressable
IP &!
Bus. Model !
Entry Barriers
Traction!
Early "
Customers"
Team!
Skills & "
Track Record
The Right!
Investment!

6. Getting to Yes: 3 Levels of Engagement
Emotional! Rational! Financial!

7. 7Signs the
investor is
just not that
into you :-(

8. 1“I still don’t know
what you do”

9. 2“Isn’t your product a
nice to have vs. a real
market need?”

10. 3Is your market really
big enough?

11. 4“I still don’t understand
how you make money”

12. 5“Are you underestimating
your go-to-market costs?”

13. 6Couldn’t your
competitors copy you?

14. 7“Do you have the right
players on your team?”

15. Pitch Principles
§ Storify
Create a well paced, logical narrative….think storyboard
§ Disnify
Use visuals - frameworks, graphics and images…But only where they
make sense…you are not keynoting a TED talk
§ Personify
Relate to the team’s personal experiences…investors are in the people
business.
§ Simplify
Avoid too much detail, overused buzzwords and jargon…getting a
term sheet after first meeting is not the goal
§ Quantify
Show how you make money for the investor. Show key metrics
§ Verify
Can you finish this sentence? “As evidenced by…” Back up your
claims wherever you can with visible proof
Connecting on an emotional, rational financial level

16. Components of the Investor Pitch
Real
Problem
#1
Attractive
Market
#2
Unique
Advantage
#3
Compelling
Investment
#4

17. Start
Pacing Your Investor Pitch
Sample timeline: 12 minutes
End
Real
Problem
(3 min)
#1
Attractive
Market
(4 min)
#2
Unique
Advantage
(3 min)
#3
Compelling
Investment
(2 min)
#4
Real
Problem
(3 min)
#1
Attractive
Market
(3-4 min)
#2
Unique
Advantage
(3-4 min)
#3
* Note: Elapsed times are guidelines only

18. Answering the “So What?”
Real!
Problem!
1
Focusing a Problem that Matters

19. Creating Impact
• Core Value Proposition: Use a single sentence
• Unique Benefit: Focus on one single aspect of
what you do (aka…”the big idea”)
• Metaphors: Try to create a cognitive connection to
something people understand i.e. metaphor -
”Cover = Uber for restaurants or Rent Frock
Repeat = Zipcar for Designer Fashion”
• Emotion: Create a visceral response (why are
things still done this way?) Be provocative….Nice
to have’s aren’t investable
The Company & It’s Solution – Elevator Style
Real Problem
Introduction
Key Message: We’re fixing the insanity of the status quo
Start
Min 3

20. Start
• Current State: Show the insanity of how
customers address the issue today
• Historical Evolution: What’s changed in the
customer’s mindset
• Personas: Describe the main players in your
market you address
• Pictures: Every picture tells a story
Real Problem
Introduction
Problem
Defining the Problem
Paint a picture of who has this pain
Key Message: We’re solving real pain…not “nice to haves”
Min 3

21. • Product: What is it? "
(screen shots, product photos)
• Functionality: The Who + Do
• Benefits: High level value
• Category: Where do you play?
• Stage: What is the readiness of the solution?
Real Problem
Introduction
Problem
Solution
Your Solution to the Rescue
Describe WHAT you do and HOW you do it
Key Message: Our solution is novel and easy to understand
Start
Min 3

22. • Founded (Year)
• Employees (FT/PT) Offices
• Advisors
• Product Release(s)
• Beta Users/Unique Views/ Registrations
• Paying Customers
• Partners (Technology/Channel)
• Certifications/Industry Awards
• Media Coverage
• Patents
Real Problem
Introduction
Problem
Solution
Traction
What’s Been Achieved to Date?
Show your ability to succeed: On lots of sweat…little $
Key Message: Our team is committed and can execute
Start
Min 3

23. Gold standard detection methods (visual & x-ray)
fundamentally unchanged for decades.
Existing Tooth Decay Diagnostics
Tooth Decay Detected

24. by
Quantum
Dental
Technologies
Canary interactive software and
printed patient reports
The Canary Console

25. Company Overview
What we do
• Quantum Dental Technologies has developed a new platform which uses a low-
powered laser to detect tooth decay earlier and more accurately than conventional
technologies, allowing dentists to treat & heal the teeth instead of “drill, fill & bill”.
Milestones
• Product - Dental Clinic model designed, first commercial units manufactured
• Customers - Over 50 pre-orders secured
• IP - Strong patent portfolio
• Clinical - First Health-Canada approved clinical trial completed, second trial in
progress, providing independent validation of safety & efficacy
• Partnerships - Strong relationships with key global distributors and major multinational
strategic partners
Financing
• $3.3M raised to date, seeking an additional $1.6M to reach breakeven

26. Healthy
Tooth
Early
Enamel Decay
Advanced
Enamel Decay
Demineralization
The Life Cycle of Tooth Decay
Remineralization
Remineralization Therapies The Canary System Scan X-Ray, Drill Fill & BIll

27. Start
End
Real
Problem
(3 min)
#1
Attractive
Market
(3-4 min)
#2
Unique
Advantage
(3 min)
#3
Compelling
Investment
(2 min)
#4
Unique
Advantage
(3 min)
#3

28. Attractive
Market!
2
Opportunity Awaits
Lots of Room in the Market to Scale a Business

29. • Size: What’s being spent today on problem? Build
from ground up. Can the market support multiple
players?
• Addressability: What’s the reasonable market you can
serve?
• Segments: Going Niche or broad?
• Global: Identify other markets
• Proof: Use 3rd party analyst reports
• Thought Leadership: Are you using primary research
to gain insight?
• Charts: Keep it visual and engaging
Market Size
Attractive Market
Sizeable Market Opportunity
It’s Very Big …And you Can Get To It
Key Message: We have unique insight into the market
Min
3-4
Min
7-8

30. • Status: Closed vs. Prospects and "
Paid vs. Free Trial
• Categorize: Key segments etc.
• Contextualize: Why they bought
• Personas: Describe customer characteristics
• Logos: Categorize …Avoid “logo soup”
• Evangelists: Customer quotes to validate market
pain and size
Customers
Attractive Market
Market Size
Early Customers/Prospects
Nothing really matters till somebody buys something
Key Message: We have buyers who must have our solution
Min
3-4
Min
7-8

31. • Key Metrics: Pricing, Avg. Deal Size,
Registrations/Subs., Churn, LTV etc. Note:
Cost to Acquire is perhaps the most
overlooked and important metric
• Channels: What are the downstream costs to
sell and service the customer (is this built in?)
• Competitive Scenarios: Is your model
sustainable if competitors start stealing share?
Have you factored in potential of downward
price pressure over time?
Revenue Model
Attractive Market
Customers
Market Size
Making Money
Where does the growth and profit come from?
Min
3-4
Min
7-8
Key Message: We’ve validated our revenue model and
can demonstrate how it will allow us to scale the business

32. • Visibility: Critical to success..what’s your unique story?
• Lead Generation Programs: What marketing approaches
will you use (stay high level – categorize)
• Sales Model: Direct vs. Channel (Do you have partners?
Have you built a wave for channels to ride?)
• Systems: Do you have an infrastructure to scale (CRM/
Inbound Mktg. Platforms etc.)
• Testing: Do you have capability to test value prop./offers?
• Stages: Do you have the ability to pivot from launch to
growth to maturity?
Marketing & Sales
Attractive Market
Revenue Model
Customers
Market Size
Acquiring Customers
What’s your go-to-market strategy?
Key Message: We have programs, systems and talent to
drive visibility, lead gen. and close deals
Min
3-4
Min
7-8

33. Opportunity Example: B2B Healthcare
$1.1 Billion is spent
globally every year by
Healthcare sectors on
inhalation anesthetic
Demand is growing
annually by 15%!
"
54,000 operating
rooms in NA"
"
3 dominant players
own a monopoly
position in the market,
with no forthcoming
alternatives"
Greening
Anesthesia
in
the
Opera/ng
Room

34. 1. The explosion in SaaS
• primary driver is accessibility anywhere
• auto-backup
2. Paper to digital
• lose the shoebox by bringing in digital
copies of the transaction
3. Wireless
• turn downtime into productive time
• increase automation
4. Collaborative Consumption
• show me what my peers are spending so I
can make better decisions
Strong desire to be organized,
lack competency in this area
but looking for control.
Free Agent
Nation
28.5 million
in North America
Wave is at the forefront of some powerful trends:
Opportunity Example: Consumer/SMB

35. Legal
Media/Publishing
Financial Services Healthcare
TechnologyConsulting
Associations
ASSOCIATION OF AMERICAN PULISHERS INC.
Customer Example: B2B Accounts by Sector

36. Go to Market Strategy
§ Integration Stickiness
Auto-syncing banking data
every night
§ Communication:
Informative, insightful
weekly emails
§ Offers: Value-added,
contextual, time sensitive
offers
§ Collaboration tools with
internal and external
advisors (i.e., accountant)
§ Focus on customer service
§ PR – already featured in the
Financial Post and Profit
Magazine. U.S. PR through
Hoffman.
§ Social media and blog to
drive SEO
§ Partnerships, i.e. banks,
accounting firms
§ Vertical Communities:
Custom chart of accounts
for 40+ industries
§ Advertising: Google
Adwords, Facebook Ads,
LinkedIn DirectAds
RetainingCapturing

37. Start
End
Real
Problem
(3 min)
#1
Attractive
Market
(3-4 min)
#2
Unique
Advantage
(3-4 min)
#3
Compelling
Investment
(2 min)
#4

38. You are in the Best Position to Win
Unique!
Advantage!
#3
Many of the essential pieces are in place

39. • Role: What value will they add to your solution
Research/Development/Sales/Support etc.
• Reputation: Do you you have the right players in the
market you are serving?
• Category Fit: Do they have sufficient market power?
• Executive Sponsorship: Do you have buy in from
key people inside the channel?
• Incentives: Is the partner aligned financially to
support you?
• Longer Term: Is there competitive threat or potential
M&A?
Partners
Partners
Show how you can punch above your weight
Key Message: Important market players buy into
our vision and want to work with us
Min 6
Min 10
Unique Advantage

40. • Technology: Validate how you are different?
How much market lead do you have? What
degree of leverage and scale do they create?
• Process: Are there unique process elements of
how your technology works?
• Licenses: Are there 3rd party components of
your solution that are licensed? Do you have an
exclusive right to the technology?
• Patents: What is the focus of the patent and
what stage are you at? (provisional filing, patent
granted) – Not a bad idea to mention any name
brand attorneys you work with.
Partners
Competition
Technology/IP
Competition: Technology/IP Leadership
Creating barriers to entry
Min 6
Min 10
Unique Advantage
Key Message: We’ve nailed a problem that is hard to solve.
It will be hard for competitors to catch up

41. • Company Background: List experience in terms
of key companies each team member worked for.
List “pedigrees” (notable exits).
• Planned Hires: Speak briefly to what primary role
they will play in the venture
• Achievement: Focus on a key aspect of their
experience that uniquely qualifies them for the
venture
• New Hires: Where applicable, speak to any key
people you may be hiring to build out the team
Partners
Technology/IP
Team & Advisors
Unique Advantage
Team & Advisors
The capabilities to execute on the plan
Min 6
Min 10
Key Message: We have assembled the right mix of people who understand
our target customers and the dynamics of the marketplace.
We have “know how” and “know who.”

42. Competition Example
Wave is everything that the market leaders are not:
Simple, Fast, Easy, Secure, Addictive, FREE.
Comp.
1
Comp.
2
Comp.
3
Comp.
4

43. A team of experts
• Chris Bryson, CEO
Aeroplan, Warrillow & Co.
• Marc Faucher, COO
Blackberry Partners Fund
• Amr Hiram, VP IT
SAP, Red Iron
• Diego Maniloff, Lead Data Scientist
MIT
Team Example

44. With expert advisors
• Brian Sinclair
AIMIA, Aeroplan, Nectar
• Bill Bishop
Brick Meets Click, Willard Bishop
• Drew Green
SHOP.CA, Doubleclick, Shop.org
• Robin Axon & Duncan Hill
Mantella Venture Partners, Chango
Team Example

45. Start
End
Real
Problem
(3 min)
#1
Attractive
Market
(3-4 min)
#2
Unique
Advantage
(3-4 min)
#3
Compelling
Investment
(2 min)
#4

46. There is Upside for Investors
Compelling!
Investment!
#4
Presenting the Offer for Investment

47. Key Message: Our venture clearly offers a
superior return for our investors.
• Key Numbers: Revenues, Expenses, EBITDA,
Customers, Headcount
• Burn Rate: What is the net cash out month
• Assumptions: Be prepared to defend them
• Scenarios: Be able to speak to impact of
various scenarios (i.e. Cost of Acquisition is x
% higher than forecast or lack of conversion
from free to premium)
Financials
Compelling Investment
How You Will Make Money
Key Metrics that Explain the Bottom Line for Investors
Min 10
End

48. • Investment Structure/Terms: Type of Instrument
(Convertible Debt, Equity) and what are the terms
of the deal
• Amount: What’s been raised and what is left in the
round? Use of Proceeds: What milestones will
you achieve (with the investors money)
• Runway: What amount of time does the current
money buy (can you hit breakeven or is a new
round required?)
• Pipeline: Be prepared to speak to who is
committed so far and who are you approaching.
You must show momentum – “herd dynamics.”
• Valuation: Be careful about “premature”
discussions regarding pre-money value – don’t
price from the podium!
Compelling Investment
Financials
Offer Details
The Ask
Value & Deal Structure/Terms & Use of Funds
Min 10
End
Key Message: Our structure and terms should
meet your investment criteria

49. Financial Projections
2011 2012 2013 2014 2015
Number of Licenses # # # # #
Revenue $______ $______ $_______ $_______ $_______
Expenses $______ $______ $_______ $_______ $_______
Gross Margin % % % % %
EBITDA $_______ $_______ $_______ $_______ $_______
Total Head Count # # # # #

50. • Investment to Date: $_______"
– $______ support from government programs/grants (if applicable) "
– $______ cash investment from founders and angels
"
• Current Raise: $________
"
• Use of Funds See Examples of Activities Below!
– Build Marketing programs"
– Hire US sales team"
– Commercial launch of V1.0 product "
– Secure final regulatory approvals"
– Finalize Patents"
– Initiate large scale manufacturing
"
• Further Fundraising? !
– Planned ___ Round Financing in ____ of _____ "
– Expect to achieve __________with the proceeds of this raise "
"
Financing & Use of Funds

51. A Recap: The 4 Components of the Pitch
Real
Problem
#1
Attractive
Market
#2
Unique
Advantage
#3
Compelling
Investment
#4

52. In the End…The Investment is in You
A dozen attributes smart investors look for in startup teams
1. Honesty…….........................Gives straight answers to investor questions
2. Vision….................................Demonstrates customer insight/thought leadership
3. Resourcefulness……………
Can make an investor’s dollar go far
4. Logic …………….……………Makes wise, pragmatic decisions quickly
5. Drive…………………………..Genuine passion for early stage & ability to excite
6. Humility……………………….Coachable and seeks help to address weak spots
7. Leadership……………………Has the ability to attract and lead a winning team
8. Critical Thinking……………..Challenges assumptions and spots the false +’s
12. Agility……………...................Decisive…Cuts losses & pivots at the right time
9. Commitment……………........Not just involved - sweat &/or capital invested
10. Patience……………...............Tolerance to the ambiguity of innovation
11. Credibility…………….............Well researched. Uses data to back assumptions

53. Peter Evans, Entrepreneur-In-Residence, MaRS!
@techmarketer
http://ca.linkedin.com/in/peterevansprofile