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What investors want slide deck with notes

Richard Sun, CFA
Richard Sun, CFA

Most startup investors have previously been successful entrepreneurs who have built and sold businesses for a profit. To receive funding, a startup needs to demonstrate that they have an innovative product idea with a massive potential market, an experienced management team capable of executing the vision and marketing the product, and a clear plan for generating profits for investors. The presentation should inspire investors and make them want to support the venture despite risks.

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Most startup investors have done what you want to do. They are cashed out entrepreneurs. They built businesses and sold them for a profit. Most see dozens of investment opportunities and invest in only a few--you need to be in a very select group to be funded. By the end of your presentation, you want them to conclude that, against the odds and despite whatever happens, you are capable of, committed to and have a plan for making money for them. This presentation tells you how to do that. 1
A venture with the five Ms will get funded. Magic the technology or new business concept. Massive Market an addressable market in the billions. Management the team to pull it off, or even better has before. Marketing the ability to convince others to give you money for the product or service. 2
This talk was derived from a TED talk by David Rose. His advice on pitching is some of the best I have seen. He has been on both sides of the table. He has raised millions, invested millions. 3
This is first for a reason. Investors look for expect and demand absolute and complete honesty. Few entrepreneurs appreciate how crucial it is or how high the bar. Even using the wrong tense is fatal. For instance, if you have not accomplished a task, you must use the future tense. 4
Demonstrate extraordinary enthusiasm; matched with competence and realism. The best sports coaches--the ones who turn underdog, losing teams into winnershave this characteristic. Study them. Emulate them. Think, act and live like them. But be inspiring nor tyranical. 5
The ideal start up team has executed multiple startups. Most have been part of successes and failures. Virtually all venture capital startup money goes to second and third time entrepreneurs. YouTubes founders were cashed out veterans of PayPal Thats the reality of this business. Consider adding someone to your team who has been there done it. 6
Investors want to see competence in the business segment. Especially if you are going into an established space, be an expert. If you are creating a space, you have some leeway. 7
Creating a company requires a wide range of skills- everything you need to build, grow and run a company: Product development Manufacturing, Marketing & sales Finance and administration. No one has them all, so you need to attract, organize and inspire people who, in the aggregate, have them all. Big company guys often have trouble transitioning to small ones. --At small companies, they have to do more with less. --There is no one to blame, it is hard to hide failure. 8
Successful companies are not solo acts. They are led by skilled and inspiring visionaries. Think Oprah a hugely talented celebrity but also a skilled business woman. Investors want to see that you can Identify and cover your weaknesses, Have the vision and charisma to attract other A- players, and Build the team. And yes only A-players get funded. 9
Can you persevere through the valley of death? Do you have the level of commitment demonstrated by champion marathon runners and the Special Forces? Most successful companies are founded by people who have failed once--or at least seen it up close and painful. 10
Do you have a plan to change the worldor a least a business segment? And, do you have a reasonable plan for how to do so? With a 90 percent fail rate, the winners have to be big: 20-to-one payoffs for the investors. This wont happen with a lifestyle business--two or three restaurants; it has to be a new model that is the basis for a chain of dozens or preferably hundreds of them, like McDonalds. 11
Investors will quickly dismiss as hopelessly naive any founder who does not have a healthy paranoia or at least respect for the competition. In both cases here we have one man and one tank. Which individual is more likely to prevail? If you solving a big problem in a big market, then you have probably a dozen competitors and several that have developed technology that with good management, marketing and money can triumph sometimes over superior technology, perhaps evenyours. 12
Investors want to know if you can learn from other business builders. Do you 1. listen carefully and learn from others? 2. have a genuine thirst for relevant knowledge? 3. have an open mind? 4. self-educate? If a potential investor asks a particularly challenging, skeptical question, treat it as an opportunity to learn as much as an opportunity to convince. Dont win a debate and lose the funding. State relevant facts that will move the doubter to the desired conclusion. Even better, discuss the risk in more detail with them and describe your plan to overcome it. Acknowledge the real risks. Establish a partnership; gain their confidence win the money. 13
Hook them with the first sentence or loose them for ever. VCs & angels have short attention spans. Demonstrate; dont assert. Loose the adjectives; cite numbers & verifiable facts & accomplishments. Do you want your audience listening to you or reading the handoutgive it to them afterwards. If they dont reach for it with interestyou failed. Investors are looking for the another Facebook or at least a YouTube. They want to believe, they are yours to lose. Dont. They want: the Next Big Thing. You want: the Next Meeting. 14
際際滷 Decks: 10 slides 20 minutes 30 point type minimum Practice to perfection Be able to give the presentation without notes or slides. Look at individuals not the audience. Now for a contrast. 15
Really bad presentations did not stop one person from becoming a success. But do you have a concept and team as big as Microsoft and the drive and skill of Bill Gates? Now, who gave the most compelling presentations? The ones people anticipated and stood in line for? 16
Notice anything missing? Great entrepreneurs, can hold audience attention with the narrative. Their mastery of the space, the product and the dream is compelling. They dont distract the audience with tedious text. The presentation conveys the vision. It makes your dream their dream. That is the first step in building the business and realizing your dream. 17
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What investors want slide deck with notes

  • 1. Most startup investors have done what you want to do. They are cashed out entrepreneurs. They built businesses and sold them for a profit. Most see dozens of investment opportunities and invest in only a few--you need to be in a very select group to be funded. By the end of your presentation, you want them to conclude that, against the odds and despite whatever happens, you are capable of, committed to and have a plan for making money for them. This presentation tells you how to do that. 1
  • 2. A venture with the five Ms will get funded. Magic the technology or new business concept. Massive Market an addressable market in the billions. Management the team to pull it off, or even better has before. Marketing the ability to convince others to give you money for the product or service. 2
  • 3. This talk was derived from a TED talk by David Rose. His advice on pitching is some of the best I have seen. He has been on both sides of the table. He has raised millions, invested millions. 3
  • 4. This is first for a reason. Investors look for expect and demand absolute and complete honesty. Few entrepreneurs appreciate how crucial it is or how high the bar. Even using the wrong tense is fatal. For instance, if you have not accomplished a task, you must use the future tense. 4
  • 5. Demonstrate extraordinary enthusiasm; matched with competence and realism. The best sports coaches--the ones who turn underdog, losing teams into winnershave this characteristic. Study them. Emulate them. Think, act and live like them. But be inspiring nor tyranical. 5
  • 6. The ideal start up team has executed multiple startups. Most have been part of successes and failures. Virtually all venture capital startup money goes to second and third time entrepreneurs. YouTubes founders were cashed out veterans of PayPal Thats the reality of this business. Consider adding someone to your team who has been there done it. 6
  • 7. Investors want to see competence in the business segment. Especially if you are going into an established space, be an expert. If you are creating a space, you have some leeway. 7
  • 8. Creating a company requires a wide range of skills- everything you need to build, grow and run a company: Product development Manufacturing, Marketing & sales Finance and administration. No one has them all, so you need to attract, organize and inspire people who, in the aggregate, have them all. Big company guys often have trouble transitioning to small ones. --At small companies, they have to do more with less. --There is no one to blame, it is hard to hide failure. 8
  • 9. Successful companies are not solo acts. They are led by skilled and inspiring visionaries. Think Oprah a hugely talented celebrity but also a skilled business woman. Investors want to see that you can Identify and cover your weaknesses, Have the vision and charisma to attract other A- players, and Build the team. And yes only A-players get funded. 9
  • 10. Can you persevere through the valley of death? Do you have the level of commitment demonstrated by champion marathon runners and the Special Forces? Most successful companies are founded by people who have failed once--or at least seen it up close and painful. 10
  • 11. Do you have a plan to change the worldor a least a business segment? And, do you have a reasonable plan for how to do so? With a 90 percent fail rate, the winners have to be big: 20-to-one payoffs for the investors. This wont happen with a lifestyle business--two or three restaurants; it has to be a new model that is the basis for a chain of dozens or preferably hundreds of them, like McDonalds. 11
  • 12. Investors will quickly dismiss as hopelessly naive any founder who does not have a healthy paranoia or at least respect for the competition. In both cases here we have one man and one tank. Which individual is more likely to prevail? If you solving a big problem in a big market, then you have probably a dozen competitors and several that have developed technology that with good management, marketing and money can triumph sometimes over superior technology, perhaps evenyours. 12
  • 13. Investors want to know if you can learn from other business builders. Do you 1. listen carefully and learn from others? 2. have a genuine thirst for relevant knowledge? 3. have an open mind? 4. self-educate? If a potential investor asks a particularly challenging, skeptical question, treat it as an opportunity to learn as much as an opportunity to convince. Dont win a debate and lose the funding. State relevant facts that will move the doubter to the desired conclusion. Even better, discuss the risk in more detail with them and describe your plan to overcome it. Acknowledge the real risks. Establish a partnership; gain their confidence win the money. 13
  • 14. Hook them with the first sentence or loose them for ever. VCs & angels have short attention spans. Demonstrate; dont assert. Loose the adjectives; cite numbers & verifiable facts & accomplishments. Do you want your audience listening to you or reading the handoutgive it to them afterwards. If they dont reach for it with interestyou failed. Investors are looking for the another Facebook or at least a YouTube. They want to believe, they are yours to lose. Dont. They want: the Next Big Thing. You want: the Next Meeting. 14
  • 15. 際際滷 Decks: 10 slides 20 minutes 30 point type minimum Practice to perfection Be able to give the presentation without notes or slides. Look at individuals not the audience. Now for a contrast. 15
  • 16. Really bad presentations did not stop one person from becoming a success. But do you have a concept and team as big as Microsoft and the drive and skill of Bill Gates? Now, who gave the most compelling presentations? The ones people anticipated and stood in line for? 16
  • 17. Notice anything missing? Great entrepreneurs, can hold audience attention with the narrative. Their mastery of the space, the product and the dream is compelling. They dont distract the audience with tedious text. The presentation conveys the vision. It makes your dream their dream. That is the first step in building the business and realizing your dream. 17
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