How to Pitch to Investors

1. @NYUEntrepreneur How to Pitch to Investors Frank Rimalovski Executive Director, Entrepreneurial Institute Managing Director, Innovation Venture Fund Mar 4, 2017

2. @NYUEntrepreneur Topics u When to Pitch u Role of the Pitch u Before the Pitch u Elements of a Good Pitch u Frank’s Pet peeves u Q&A

3. @NYUEntrepreneur When to pitch?

4. @NYUEntrepreneur Venture Funding Lifecycle 4 ① Discovery ② Validation ③ Customer Creation ④ Company Building Test assumptions about customer needs/problem & develop MVP Seek Validation that people are interested in your solution Begins to build demand & improve efficiency of customer acquisition Drive growth aggressively & execute business model Invention & ideation Grants, Competitions Founders + Credit cards Grants Crowdfounding Customers SBIR/STTR + Accelerators Friends & family Angels Seed funds Venture capital funds Leasing Factoring Vendor finance Private equity Public markets Valuation*

5. @NYUEntrepreneur Role of the pitch?

6. @NYUEntrepreneur Why do we pitch?

7. @NYUEntrepreneur To raise money?

8. @NYUEntrepreneur To sell shares!

9. @NYUEntrepreneur Raise money when you can raise it! Not just when you need it!

10. @NYUEntrepreneur The Other Role of the Pitch u Investor pitch is a proxy…

11. @NYUEntrepreneur The Other Role of the Pitch u Investor pitch is a proxy…for your ability to: o Recruit talent & lead a team o Sell to customers o Attract partners u Tell a story & engage your audience u Cover the bases…not just your product/tech u But, it doesn’t stop with your pitch deck

12. @NYUEntrepreneur But, you definitely will not raise money on a bad 1st pitch You will not raise money solely on a great 1st pitch

13. @NYUEntrepreneur Goal of the pitch is to get another meeting!

14. @NYUEntrepreneur Before the Pitch

15. @NYUEntrepreneur15

16. @NYUEntrepreneur

17. @NYUEntrepreneur Critical Questions to Answer u When to raise & why now? u How much to raise? u What are you looking for in an investor? u What will you spend the money on? u How long will it last? u What will you accomplish? u What are investors looking for in you? u Why should they invest in you? u How will they make money by investing? u Will you need to raise more? If so, how much & when? What are those investors looking for?

18. @NYUEntrepreneur If you can’t answer all those questions, you are not ready to raise!

19. @NYUEntrepreneur Exploratory/ feedback meetings (aka customer discovery!)

20. @NYUEntrepreneur Investor Considerations u Stage u Sector focus u Fund lifecycle u Recent activity u Lead or follow? u Investment pace u Typical check size u Potential warm intros u Value added services u One & done or follow-on? u Directly competitive portcos

21. @NYUEntrepreneur Information Sources Crunchbase/ CB Insights/ AngelList Fund Websites/ Blogs News/Media Mentors/ Coaches/Other Entrepreneurs Service providers Entrepreneurial Institute Team

23. @NYUEntrepreneur Elements of a Good Pitch

24. @NYUEntrepreneur Outline 1. Welcome: Your biz thesis; 10-20 secs to engage 2. Problem: You solve & who you solve it for (target customer) 3. Solution: Your solution with compelling, quantifiable benefits 4. Product: Your product, how it works & evidence that it does 5. Revenue Model: How you make money 6. Market: How much money you could make if you dominate 7. Competition: Who they are & why your solution is better 8. Cust Acq: How acquire & retain customers, profitably & at scale 9. Unit Economics: How much money you make 10. Traction: Proof that customers/users love your product 11. Team: Experience/expertise to own this opportunity 12. Funding: How much, uses, accomplishments & runway 13. Summary: Market + Differentiation + Team + Traction

25. @NYUEntrepreneur Welcome Gleamr A ma rke ta Uber for mobile auto details “Get an affordable, professional auto detail wherever you are, whenever you want” Copyright 2015 Gleamr. Created by PitchDeckCoach.com On demand

26. @NYUEntrepreneur Problem Problem 2 Busy consumers lack an easy way to get their car professionally detailed at their home or office • No single view of currently available detailers • Few reviews to guide selection • Little opportunity to negotiate prices • Visiting a detailer’s shop takes too much time Mobile auto detailers spend too much time/money finding customers when they would rather be detailing cars • Spend ~$12K/year on marketing (National Auto Detail Assoc.) Copyright 2015 Gleamr. Created by PitchDeckCoach.com Too broad • quantify problem/frequency • quantify downside of“too much time/money”

27. @NYUEntrepreneur Solution Solution 3 Gleamr iPhone app and website. “Get an affordable, professional auto detail wherever you are, whenever you want” SAVE TIME detailers come to their home or office SAVE MONEY detailers compete for their business GREAT JOB detailers work hard for great reviews CONSUMERS SAVE TIME less time chasing customers MORE MONEY more time detailing cars GROW FASTER great reviews + great prices = more work DETAILERS Copyright 2015 Gleamr. Created by PitchDeckCoach.com Show me the Money Show me the Money

28. @NYUEntrepreneur Product Product 4 2. COMPARE REVIEWS & PRICES 1. BROWSE AVAILABLE DETAILERS 3. SELECT, BOOK & PAY Amazing screenshot Amazing screenshot Amazing screenshot • Option to add tip after job • Review required after job • Standardized services & prices • Detailer can discount (bid) on the fly based on demand • Filter by date/time/availability/ratin gs/reviews/bid 2 patents pending Copyright 2015 Gleamr. Created by PitchDeckCoach.com

29. @NYUEntrepreneur Revenue Model/Unit Econ Business Model How we make money 5 We charge detailers a 15% transaction fee Copyright 2015 Gleamr. Created by PitchDeckCoach.com Gleamr Job $75.00 Detailer $63.75 Gleamr $11.25 Gleamr’s fee is a cost of revenue w/ guaranteed ROI vs. a marketing expense w/ no guaranteed ROI COGS ?

30. @NYUEntrepreneur Market Market Top Down – USA only 7a $36 Billion TOTAL US AUTO DETAILING Source: [Some reputable source] $12 Billion MOBILE US AUTO DETAILING Source: [Some reputable source] ~$2 Billion GLEAMR MARKET OPP 15% transaction fee Copyright 2015 Gleamr. Created by PitchDeckCoach.com

31. @NYUEntrepreneur Market Market Bottom Up – USA only 7b US Autos on the Road1 270 Million Total Detailed @ 33%2 90 Million Total Mobile @ 33%3 30 Million Mobile Details per Auto per Year 6 Total Mobile Detailed per Year 180 Million Average Mobile Detail Price4 $75 Total Mobile Detail Sales per Year ~$14 Billion Gleamr Opp. per Year @ 15% ~$2 Billion 1. [Some reputable source] 2. [Some reputable source] 3. [Some reputable source] 4. [Some reputable source] Copyright 2015 Gleamr. Created by PitchDeckCoach.com

32. @NYUEntrepreneur Competition Competition 8 MORE CONVENIENT LESS CONVENIENT LESS EXPENSIVEMORE EXPENSIVE Gleamr Competitor Logo Competitor Logo Competitor Logo Competitor Logo Competitor Logo Competitor Logo Copyright 2015 Gleamr. Created by PitchDeckCoach.com

33. @NYUEntrepreneur Customer Acquisition Growth Strategy How we will scale our business 9 • Online marketing inc. SEM, SEO, SMM, daily deals • Refer-a-friend discounts for consumers • Volume/loyalty discounts for consumers & detailers • Incentive programs for HR and office managers • Dedicated customer service reps for each DMA • Gleamr staffed community message boards for consumers (public) and detailers (login required) • Consumer Product Advisory Board to drive consumer features • Detailer Product Advisory Board to drive detailer features • Add Android App • Add Website MARKETING & SALES Acquiring customers CUSTOMER SERVICE Keeping customers PRODUCT DEVELOPMENT Staying competitive Copyright 2015 Gleamr. Created by PitchDeckCoach.com

34. @NYUEntrepreneur Traction Traction Detailers and consumers love our service… 6 Detailers Users Jobs Gross Revenue Gleamr Revenue LAUNCH 0 0 0 $0 $0 June 10 100 90 $6,750 $1,013 July 50 500 450 $33,750 $5,063 August 200 2,000 1,800 $135,000 $20,250 Sep 400 4,000 3,600 $270,000 $40,500 Oct 800 8,000 7,200 $540,000 $81,000 Nov 1,600 16,000 14,400 $1,080,000 $162,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 1 2 3 4 5 6 Revenue by Month Key Metrics Copyright 2015 Gleamr. Created by PitchDeckCoach.com LTV = 5x CAC More of these Less of these Nice touch, but unsubstantiated

35. @NYUEntrepreneur Team Jon Doh (Founder/CEO) Co-founder/CEO @ ArtFinder (sold to Ebay). Prev. LinkedIn Trish Taylor (Founder/VP Engineering) Co-founder/VP Eng. @ ArtFinder (sold to Ebay). Prev. Facebook Ben Brando (VP Sales/Marketing) Prev. HubSpot Will Wachon (Advisor) Founder/CEO @ Speedy K (Mobile auto detailing franchise) Sue Smead (Advisor) SVP Corp Dev @ Ebay Meg Mitchum (Advisor) CMO @ HubSpot TBH (Director, Customer Service) Team 11 Nice touch

36. @NYUEntrepreneur Funding Funding 12 Bootstrapped by founders thru MVP and first 6 months Seeking $2M Series A • Target close by EOQ3 • $600K committed So we can • Reach $48M in sales • Scale/refine marketing/customer acquisition • Scale customer service (detailers) • Scale infrastructure Copyright 2015 Gleamr. Created by PitchDeckCoach.com Length of runway ?

37. @NYUEntrepreneur Summary Summary 13 Copyright 2015 Gleamr. Created by PitchDeckCoach.com Big Opportunity: First mover in $36B US auto detail market Strong Team: Deep market/technology/execution experience Sustainable Technology Advantage: 2 patents pending Significant Traction: 1,600 detailers, 16,000 users, $162K/mo Seeking $2M Series to achieve $6M run rate

38. @NYUEntrepreneur The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? categories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market Your Pitch Canvas Team Team Customer Acquisition Unit Economics Problem Revenue Model Product Funding Market Size Solution Funding

39. @NYUEntrepreneur Frank’s Pitch Pet Peeves

40. @NYUEntrepreneur Where are you on the Spectrum? Accentuating the Positive Stretching the Truth Exaggerating Lying & Obfuscating

41. @NYUEntrepreneur Lies Entrepreneurs Tell We’re signing a huge contract next week! Our round is almost fully subscribed. We’re in over 500 accounts already! We’re increasing our top of funnel sales leads by 10x. Other investors aren’t asking for this information. Other angels are already funding. We have 3 patents. Our CTO is full time.

42. @NYUEntrepreneur4 2

49. @NYUEntrepreneur49 “The key to success I know not, but trying to please everyone, the key to failure is.”

57. @NYUEntrepreneur57 Useless animations

58. @NYUEntrepreneur Frank’s Pitch Pet Peeves u Off target pitches u Ideas u Typos/poor grammar/jargon/wordiness u The “big windup” u “No competition” u 100% outsourced development u Business plans/Long documents u Large attachments u Secrets & NDAs u Defensiveness u Unresponsiveness u Useless animations u Slides like this!

59. @NYUEntrepreneur Questions? entrepreneur@nyu.edu @nyuentrepreneur entrepreneur.nyu.edu 16 Washington Place

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How to Pitch to Investors