Here's how to pitch your startup. This presentation explains all you need to know about the high-concept pitch, the elevator pitch and the pitch deck. If you like it, you'll love my http://pitchingmasterclass.com
TL;DR - THE ONE THING
Answer these two simple questions:
“What PROBLEM are you solving & what
SOLUTION do you offer?”
You must be able to tell this in one or two short sentences
AT ALL TIMES - even in your sleep
WHAT WE PITCH
Problem / Need, Solution, Market Size,
Goto Market, Team, Competition,
Financials, Ask, BLA BLA BLA ETC
WHAT THE VC HEARS
1. Is there money to be made here?
2. Are these the right people who will
make me money?
3. How much money can we make
here (with these people)?
REALITY CHECK
A VC WILL ONLY INVEST
IF AND ONLY IF
TEAM IS RIGHT &
TOTAL MARKET SIZE IS
BIG ENOUGH TO GROW IN
HIGH CONCEPT PITCH
Distills a startup’s vision into a single sentence
The “We are the X for Y” pitch
The 140 characters or less “twitter pitch”
Perfect tool for fans and investors to spread
the word about your company
HIGH CONCEPT PITCH
Hollywood has perfected the art of the high
concept pitch:
“Its Jaws in space!” (Alien)
For startups:
“Friendster for dogs” (Dogster)
“Flickr for video” (YouTube)
Be brief: One short sentence
Be familiar: A 6 year old child should
understand the words and concepts in
your pitch
HIGH CONCEPT PITCH
ELEVATOR PITCH
The major components of the elevator pitch are:
TRACTION, PRODUCT, TEAM
& SOCIAL PROOF
“An introduction captures an investor’s attention, a great
elevator pitch gets a meeting.”
ELEVATOR PITCH
A 30 second talk you can present a captive
audience (e.g. when riding in the elevator,
sharing an Uber or at a cocktail party)
Or a short e-mail that a middleman can
forward to someone with a
recommendation as an introduction for you
ELEVATOR PITCH
Many investors will ignore your deck and
ONLY take a meeting if the introduction and
elevator pitch are good
Without an introduction, an elevator pitch is
critical to a successful cold e-mail or getting
that meeting
1. TRACTION
“A rolling stone gathers no moss” - show the increasing numbers
Tell all the compelling facts, be it user or revenue growth, be it
publications or awards, advisors secured, event invite - whatever
you have achieved in the last period of time
Show momentum - no investor wants to waste time on someone
who’s been fiddling with an idea for years and has nothing to show
for it
“Use what you’ve got” and roll it into a compressed story where the
compelling facts are on an accelerating curve that goes up and to the
right, hockey stick style, for the last 6 months
2. PRODUCT
What problem are you solving and how are
you solving it?
Where does your product live (web/mobile/
physical)?
What is the status of your product? (idea,
prototype/MVP, paying customers, etc?)
3. TEAM
BRAG! - Why are you guys so fucking awesome?
Which relevant things have you done in the past
that makes it believable that you are the right
people to make this a success?
Convey the feeling that you have all the relevant
skills in your team to make this happen (do you?)
4. SOCIAL PROOF
Show who and what else that you can vouch for you
Sales, customers, interviews, publications, patents, events,
awards, user figures or user testimonials, advisors or
board members secured
Use what you’ve got to convince people you are not just
talking, that this is real and you’ve exposed it to the world
The “I am not just another a crazy person with ideas” proof
PITCH PROGRESSION
1. A high concept pitch gets people’s
attention, an incentive to let you keep talking
2. An elevator pitch convinces investors to
read your deck
3. A deck sells investors on taking a meeting
4. A meeting will lead to a funding decision
PRE-LAUNCH SELL THE VISION
LIKE NO TOMORROW -
IT’S ALL YOU GOT
POST-LAUNCH BE PREPARED
PREPARE TO SHOW YOUR
REAL ACTUAL METRICS
THE PITCH DECK
An introduction and elevator pitch are critical to
getting a meeting
And the pitch deck is what you send investors and
what you present in that meeting
The deck is NOT a Business Plan - SERIOUSLY
NEVERsend an investor a business plan - EVER
MISSION
What you will do and how you will do it
Also: What you will NOT do
The thing you are striving to accomplish but have yet to complete
Optionally: Fill white space with logos of customers and testimonials
What will also guide decision making for you
e.g. ”Acme Gadgets will create and dominate a new network service
category that defends web applications from distributed-denial-of-
service attacks."
SUMMARY
Summarise the key, compelling facts of
the company
You can steal the content from your
elevator pitch
ONLY things you HAVE DONE, not what you
may or may not do in the future
TEAM
Highlight the past accomplishments of the team, BRAG
If your team has been successful before, investors may believe
it will be successful again (although a logical fallacy)
Do NOT include positions you intend to fill (save that for the
Milestones slide)
Tell a story about how your career has led to the discovery of
the…
Put yourself last in team if you must: it seems humble
PROBLEM
Without yet getting into your product or
service, describe the nature of the
problem you address
Emphasise the pain level and the inability
of incumbents, the current established
players, to satisfy the customer need
SOLUTION
Introduce your product, and the benefits (which
should obviously address and fit the market
problem you just described like hand in glove)
SHOW DON’T TELL: Include a demo such as a
screencast, a link to working software, or pictures.
ONE SLIDE ONLY: This is not your product manual
Solution Presentation Pro Tip:
You have to prepare for any and all eventualities if you are demoing product -
Videos will stop working, Internet will disappear, and so on
ALWAYS have the following prepared in your deck:
1. Live Demo (link out - skip to next slide if not working)
2. Video of pre-recorded Live Demo (skip to next slide if not working)
3. Screenshot sequence of key features in pre-recorded demo (always works)
Start with 1 and skip ahead towards 3 if everything fails, LIVE in same
presentation
Practice the SAME user journey story through your solution for 1, 2 & 3
DO NOT EVER MENTION SOMETHING NOT WORKING - just move on to next
option and NO ONE will ever notice that the live demo or video did not work.
TECHNOLOGY
Elaborate on the technology or methodology you
have developed to enable your unique approach
Open Source? Licensed? DIY? Are there hidden costs
and liabilities? Is the IP yours or someone else’s?
Maintaining your own software is going to be how
costly vs using something else?
If appropriate, mention patent status
MARKETING
Include market size estimates here or in the Problem
If you haven’t launched, discuss your plan to acquire
users or customers, show the expected cost of
customer acquisition
If you have launched, include CAC vs CLTV & growth
rate and activation rates, if appropriate
“NO BUSINESS PLAN
EVER SURVIVES FIRST
CONTACT WITH
CUSTOMER”
STEVE BLANK
FATHER OF THE LEAN STARTUP
SALES
If you don’t have sales, discuss your business model and
prospective customers, use a Business Model Canvas
(BMC) to explain it all in one single slide
IGNORE the cost of customer acquisition UNLESS you
have some insight into the issue
IF you have sales, show off early customer or
distribution progress: show numbers, logos, testimonials
CAC vs LTV
For each dollar you spend acquiring a
customer, how many dollars does it leave
behind in the whole lifespan you have them
as a customer?
CAC = Customer Acquisition Cost
LTV = Customer Lifetime Value
A CAC : LTV ratio of 1 : 3 or better = good
CAC vs LTV - The Driving Factors
• High Churn Rate
• Low Customer
Satisfaction
• Lack Of Stickiness
• Recurring Revenue
• Scalable Pricing
• Cross-Sell / Up-Sell
• Additions To Product
Catalogue
• Lead-Gen For 3Rd Party
• Sales Force In The Field
• Outbound Marketing
• Unoptimised Campaign
• Wrong Target Audience
• Wrong Channel
• No Network Effects
• Network Effects
• Inbound Marketing
• Free Or Freemium
• Open Source
• Free Trial
• Touchless Conversion
• Direct Marketing
• Channels
• Strategic Partnerships
CAC LTV
Growth Rate
“Startups = Growth” by Paul Graham of YC
What is your growth week over week?
More than 7% week over week is great
Engagement Rate
“30 / 10 / 1” by Fred “AVC” Wilson
What is the % of all your registered users
that will use the service or app Monthly /
Daily / Concurrent (At Any Given Time)?
30/10/1 or better is good
Cohort Analysis -
You need to understand it
VIDEO:
Cohort Analytics Explained
VIDEO:
Google Labs Cohort Analysis Workshop
Your churn rate is the amount of customers or
subscribers who cut ties with your service or
company during a given time period. These
customers have “churned.”
READ http://churn-rate.com
Churn Rate
SaaS Metrics -
You need to track it
SAAS METRICS
The Ultimate SaaS Metrics Cheat Sheet
Christoph Janz' Blog
David Skok's Blog
SaaS Metrics -
You must understand it
DEFINITIONS
HTTP://WWW.FORENTREPRENEURS.COM/SAAS-METRICS-2-DEFINITIONS/
SAAS METRICS 2.0
HTTP://WWW.FORENTREPRENEURS.COM/SAAS-METRICS-2/
How to define your market size
TAM - Total Available Market
Theoretical total market size or customer
mass with problem today
SAM - Serviceable Available Market
Theoretical total market size or customer mass
that are able to use / purchase a solution like
yours right now
SOM - Serviceable Obtainable Market
Your target market cap or customer base within
the next 2-3 years, your credible ambition
TAM
SAM
SOM
TAM SAM SOM - Rough Example
Say you want to make a dating app for iOS
Your theoretical TAM would be 1.6b world wide, the number of all adults in the
world seeking a partner, the number of people with the actual need or problem
Your theoretical SAM is the percentile of 1.6b adults who has an iPhone, not all
iPhone users in the world, not all smartphone users in the world, e.g. 1.6b
people out of 7b is 14% of all people, your SAM could then be 14% of the 500m
iPhones sold worldwide = 70m
Your SOM or Target Market could be the percentile of the 70m that you can
realistically acquire and serve in the immediate next years. This varies
individually because it is based on your personnel (team size, positioning,
channels, partners, funds, locality and competences - current and planned) and
the efficiency of your marketing (CAC vs LTV, current and feasible) of your
individual product
How to find market data
Use Google, use Quora, use CB Insights, Crunchbase
Seriously, JFGI: Just F*ing Google It
Find facts in reports from Gartner, Forester, BCG, etc to lend
some named sources to your numbers - You’ll be amazed by what
you can find online
TAM/SAM/SOM is an ART, not a SCIENCE -
Don’t make it too complicated.
Do NOT make facts and figures up, do not use questionable
sources, do not conflate markets - EVER
Business Model Canvas Instead of Biz Plan
Understand how
your business could
work - or not
Get the book
“Business Model Generation”
to understand and
communicate your
Business Model
COMPETITION
Describe why users or customers use your product instead of the
competition’s product
Describe any competitive advantages that remain after the competition
decides to copy you exactly, your UNFAIR ADVANTAGES
Competitive landscape. Be sure to anticipate competitive responses
(before the VC does and puts you in an embarrassing spot)
Never deny that you have competitors, no matter how unique you think
you are. It is OK to compete. Even against giants.
Are you in an existing market, a re-segmented market, a new market or a
clone market? Figure it out.
EXISTING MARKET
Classic: “Up and to the right”
Quality
Economical
Expensive Discounted
High
Low
CO A
CO B
CO D
MY CO
CO C
CO D
CO A
CO B
CO C
MY CO
MILESTONES
DO NOT build a detailed financial model if you don’t have past
earnings, a significant financial history, or real insights into the
issue - It’s a bullshit fantasy exercise wasting everybody’s time
Instead, include your current status and milestones for the next
1-3 quarters for product, team, marketing, sales with quarterly and
cumulative burn rates
How are you going to burn the investor’s money in the next 12-16
months and what experiments do that cover and what do you expect
to get out of (test & learn) those experiments?
Seed-Stage Milestone Tips
As you probably only have a vague problem-solution fit and most likely insignificant product-market fit
indications at this stage, think of raising money at this time to put the indications you have found so far
to the test, to put more money towards testing if what you have not proven so far can be proven and
what you found so far can be repeated and at scale
Think of the seed funding round as fuel for two or three of these critical experiments or milestones -
based however on actual stuff that you found so far, not on fantasy bullshit you might do in the future
The experiments or milestones should explain what you are going to test and which outcome you are
expecting and why you are going to test it and how much it is going to cost and what those costs
contain and when and for how long the experiments will run
These experiments should go towards proving your most critical hypotheses in your venture
Can we sell to businesses, acquire consumers, get high and predictable engagement, increase revenue,
boost growth, when we do X will Y consistently happen?, etc. i.e. can we acquire some quantified data
and evidence towards proving ourselves in a short period of time
The evidence, the outcome of these experiments will be proof for raising your next round - OR NOT -
so do not fool around with fake bullshit metrics, don’t lie to yourself and investors
CONCLUSION
This slide can be inspirational, a larger
VISION of what the company could do if
these current plans are realised, how
wonderful a place the world will be
Or just repeat another version of the
“Summary” slide
FINANCING
Dates, amounts, and sources of money raised to date
How much money you are raising in this round
How much of your company are you ready to sell in this round
DO NOT FORGET THE GIVE! If you are asking, tell what you are giving
Be careful about cementing a valuation - you might not want to lock it down in the
deck: “We believe we will create significantly more value with an investment of $X
and we are prepared to sell up to Y% of our company.” will help you set the base of
negotiation
Remember, you can give different ASK & GIVE to different investors (assume
everybody talks to everybody)
Once your deck is out the door, you’ll be surprised where it might end up
SEQUENCE OF STORY
The sequence of slides tells a story:
“We have a mission and a team that is taking us there. Why? We
discovered a large problem and solved it with a product that has this
amazing technology inside. We’re going to market and sell it to these
customers, with these advantages over our competitors. In particular,
we’re working towards these milestones over the next few quarters. In
conclusion, this financing is a great investment opportunity.”
SOURCE HTTP://VENTUREHACKS.COM/ARTICLES/DECK
SLIDE TRICKS
Put IMAGES in the SLIDES and TEXT in the NOTES
Keep the slides simple, VISUAL, and minimal
With 30 point OR LARGER font
Put talking points, reasoning, and prose in the notes that
accompany each slide
Don’t try to cram logical arguments into bullet points on
the slides
REACH THE LIZARD BRAIN
FAST: Get to the point ASAP!
NOVEL: Don’t be boring, do something remarkable,
something TRULY unexpected
CONCRETE: Don’t beat around the bush!
VISUAL: Use photos, less text!
HIGH CONTRAST: Black or white, no shades of grey, no
nuances, 1 or Zero, no in-betweens, be absolute!
BE “STICKY”
Simple: KEEP IT SIMPLE STUPID
Unexpected: Surprise & Delight
Concrete: No ifs & buts, DON’T MAKE ME THINK
Credible: Build rapport, authority & trust
Emotional: Be personal, relate, emote, be visual
Stories: TELL A F*ING STORY!!!
MAKE PEOPLE UNDERSTAND IT
STORY: Tell a story
SIMILE: Figure of speech involving the comparison of one thing with
another thing of a different kind, used to make a description more
emphatic or vivid (e.g., as brave as a lion, crazy like a fox )
ANALOGY: Comparison between two things, typically on the basis
of their structure and for the purpose of explanation or clarification
METAPHOR: Figure of speech in which a word or phrase is applied
to an object or action to which it is not literally applicable.
EXAMPLES: Use real-world, realistic, relatable examples
MAKE PEOPLE SHARE IT
Social Currency - We share things that make us look good
Triggers - Top of mind, tip of tongue
Emotion - When we care, we share
Public - Built to show, built to grow
Practical Value - News you can use
Stories - Information travels under the guise of idle chatter
VOICE & EXPRESSION
What does people remember and judge you by?
Words 7%
Voice 38%
Facial Expression 55%
93% IS HOW YOU SAY IT
NOT WHAT YOU SAY
BODY LANGUAGE
Be the Tree, feet solidly planted on the ground
Hands to the side, never crossed - EVER!
Don’t swerve, stay put
Don’t be defensive - be assertive
Step forwards - not backwards - lean into it
Look people in the eyes, stay focused, select a few people
left, right and center to focus on, distribute eye-time
STYLE
Don’t be apologetic - EVER! YOU ARE THE AWESOMEST!
Be positive and enthusiastic - You ROCK! You NEVER suck!
Be concrete, crystal clear, short and to the point
Over-State, never ever understate
Careful with self-deprecation, irony, humour - leave it out
Use adjectives and superlatives, over and over
(Think Apple Keynotes)
TIMING
Practice your pitch until you nail the timing
NEVER EVER go over the time limit. PRACTICE!
Finish slightly before the time limit to leave more
room for the questions
Do NOT rush through - Make sure you dwell on
the important points (think: dramatic pauses)
Q&A SESSION
Be in control: Answer questions with whatever answer you like
Paraphrase the question as a question back to the judges to buy you
time, think while you reflect that you have understood Q
Lean forward into it, no defensive gestures, keep eye contact, keep your
presence, remain in control
Be honest, don’t lie - “I don’t know, but I’ll find out” is the best answer
KEEP IT SHORT AND TO THE POINT: Answer like a 6 year old will
understand, and in ONE SENTENCE at best
PRACTICE ALL NASTY QUESTIONS UP FRONT - They will ask!
“I DON’T KNOW, BUT IF
YOU GIVE ME YOUR
BUSINESS CARD, I
PROMISE TO GET BACK
TO YOU WITH THE
ANSWER BY
TOMORROW”
MORE TRICKS
Acknowledge the audience, own the presence before starting the pitch
(Watch Bill Clinton speeches on YouTube)
At the end, keep in control and actively give the word to the jury for
questions instead of waiting for the moderator to do it for you
DO NOT USE A SCRIPT - EVER! Imagine your pitch as a journey instead and
use keywords as guideposts to get you through - because when you forget a
line of the script you are f*ed on stage while trying to remember it, and with
keywords on a path you’ll be fine (and use cheat cards in your hand if you
need to - it’s OK!)
Above all: PRACTICE PRACTICE PRACTICE up to the point where you can
pitch in your sleep - literally - and practice by doing all sorts of other public
speaking, because public speaking equals building your confidence
BONUS MATERIAL
Get the book
“Startup Owners Manual”
by Steve Blank & Bob Dorf
All you need to know about
building your startup in two
easy steps.
And take the free online course
VALUE PROPOSITION CANVAS
Watch this video about the
Value Prop Canvas
Then get the Book to
understand your value
propositions and customer
segments, your product-
market fit
“WHY WE POLITELY ASK FOR A DECK FIRST”
BY CHRISTOPH JANZ, POINT9 CAPITAL
HTTP://CHRISTOPHJANZ.BLOGSPOT.DE/2015/06/WHY-WE-POLITELY-ASK-FOR-
DECK-FIRST.HTML?M=1
“WHAT SHOULD BE IN MY FUNDING SLIDES?”
BY MICHAEL WOLFE
HTTPS://MEDIUM.COM/@MICHAELRWOLFE/WHAT-SHOULD-BE-IN-MY-FUNDRAISING-SLIDES-ECA162D14D2A#.8K2WAEVN4
“IN DEFENSE OF THE PITCH DECK”
BY BILL GURLEY
HTTP://ABOVETHECROWD.COM/2015/07/07/IN-DEFENSE-OF-THE-DECK/
ALL YOU NEED TO KNOW ABOUT RAISING
HTTP://VENTUREHACKS.COM/ARCHIVES
FURTHER READING