Driving Entrepreneurial Activity An entrepreneurial initiative of Flinders

Driving Entrepreneurial Activity An entrepreneurial initiative of Flinders University To inspire, educate and connect June 2014

PITCH WORKSHOP • The following is a guide to what you should include in your investor pitch presentation and your pitch. Like startups, no two pitches are the same. So feel free to change the order or add to the content. 2

PITCH POINTERS • Present with technology aids but make sure you are the focus no the deck. • Less is more when it comes to text. Use no more than 6 words for each of 6 lines. Use graphics to illustrate your point. 10 -15 slides. • The more you are able to speak to the key issues rather than rely on info in the deck, the more impressive your pitch. • Bring along leave behind materials that contain all the relevant information, but provide it after you pitch so as to not distract from content. • Practice, practice. Video record your pitch and try to obtain an independent third party review of all aspects. • Pitch with measured enthusiasm, optimism and energy • Expect to have ALL your assumptions challenged! 3

PITCH STRUCTURE AND CONTENT • Introduction • Opportunity/ Pain/ Problem • Solution • Market • Competition • Sales and marketing strategy • Business model/ financials/ projections • Management team • Funding requirements/ the ask 4

OPPORTUNITY (2 -3 SLIDES) • Describe the problem, pain or opportunity • Who is suffering the problem/ pain? • Use graphics • Use a case study to bring the problem to life • Explain how the problem is currently solved (if at all) • Why are any current solutions inadequate? • Use independent research to validate the problem where possible 5

SOLUTION (2 -3 SLIDES) • Describe your product or service • List product/ service features • Any technologies or services required to make your product operational ? • Prove that your solution is a company rather than a feature • Explain in detail the benefits provided and the beneficiaries • Use product photos or graphics • Do you have a prototype? • Is your product/ service the whole solution? • Describe your differentiator or competitive advantage • Why is your solution better than those in the market already? • How is your product service scalable? • Do you have a patent and or regulatory approval (is there a significant barrier to entry to competitiors)? 6

THE MARKET (1 -2 SLIDES) • What is the size of the market? • Define the total addressable market • Use a pie chart to illustrate the different market segments • Identify those segments that relate to your potential customers • How will you prioritize those segments • Describe the characteristics of your customers • Build the numbers from the ground up • Is the market an emerging or established market? • What is the anticipated future growth for this market? Why? • Where available cite independent market research for support 7

THE COMPETITIVE LANDSCAPE (1 -2 SLIDES) • Who are your competitors? Big and small, direct and indirect, current and future? • Use a competitive quadrant matrix (or similar) to demonstrate how your product/ service compares to your competitors • What is your strategy to ensure your target customers switch from your competitors to you? • How easy is it for your target customers to switch to you and what are the cost implications for them? • How will customers be able to benchmark your product/ service against your competition’s? • How will you defend against bigger companies bringing better solutions into the market place? • How will you dominate your market? 8

SALES 7 MARKETING STRATEGY SLIDES) (1 -2 • What is your sales and distribution model? • Who are your key customers? • How many customers do you presently have? • How will you reach your target customers? • How will you raise customers awareness of your product/ service? • How many sales staff are required? • How long does it take to close a sale and how much does it cost? • Who will be your channel partners? • Use logos for corporate customers and distribution partners? 9

BUSINESS MODEL AND FINANCIALS (1 -2 SLIDES) • How will your company make money? • Explain the elements of your business model including sales and distribution, direct and indirect sales and sales cycle • How will you achieve profitability? • Illustrate P & L and 3 -5 year revenue projections with charts • What are the key assumptions behind your forecast? • Addressing key pricing metrics including: users, account size, pricing, lifetime • How long will it take to break even? • Explain drivers of revenues and growth • Show business/ financial milestones 10

FROM LAUNCH TO EXIT (1 -2 SLIDES) • Outline the 5 year goals for your company • What are the key steps/ milestones on the road to achieving these goals? • How will you ensure your company and partners stay on schedule? • What are the major risks and challenges you face? • If your exit strategy is to be acquired, identify: • Who are your company’s most likely buyers • Any recent acquisitions of companies similar to yours • If you tend to go the IPO route: • Identify any recent, relevant and successful IPO’s • Outline the milestones to be achieved before IPO • Justify why this is a preferable route to other exits. 11

MANAGEMENT TEAM (1 -2 SLIDES) • Concise description of key management (CEO, CTO, CFO, COO etc) • Education, relevant industry background, previous companies/ startups. • Mention previous M & A’s, exits & IPO’s. • Highlight previous relevant achievements for each individual • State who is full and part time • Vacancies and planned key future hires • Board of Directors • Board of Advisors 12

FUNDING REQUIREMENTS (1 -2 SLIDES) • Specify the amount you are looking to raise • Justify why this is the amount • Milestones that will reached with new funding • Previous funding raised and identity of backers • What cash have the founders and/ management team put into the business? • How much cash do you have in the bank? • Current and future burn rates • What equity is set aside for future key hires (if applicable)? • Pre-money valuation (do not put in presentation. Discuss in an investor meeting) 13