Tips for entrepreneurs / business managers seeking equity investments: Part 2
A couple of resources for entrepreneurs, on how to pitch to venture capital funds.
The first is how HEC Paris lecturer Serge Desvignes of Iris Capital recommends entrepreneurs format their presentations. In 10 slides:
1 – Offer your solution to solve problems (needs met, value proposition)
2 – Description of products/services: succinct not over-technical (picture, video, demo)
3 – Competition: how the market is divided, strengths of the competitors, why you will be able to compete successfully
4 – Your team: past successes and experience, why they are qualified for the job (core capabilities needed)
5 – Target customers (first validation of existing customers is a must) and market size, past and forecasted growth (third party data source)
6 – Business model: how your business makes money (pricing, cost structure, distribution channels to reach customers), timing to reach milestones (events)
7 – Financials: key points from P&L, balance sheet, cash flow projections
8 – Funding: realistic description of how much money is needed, any money raised to date, how the funds will be used, if other rounds are expected
9 – Risks: assumptions, significant risks and threats, obstacles
10 – Potential return and liquidity for investors:
– proposed valuation for the funding round
– exit strategies, potential acquirers, future valuation
The second is how Sequoia Capital recommends a business plan be structured.
For tips on how to assess your business proposal’s competitive edge, see my previous post.