Pitching

Create a WOW pitch

Dry Bath

A summary of Business Angel Decision Making By Andrew Maxwell, a PhD

Thesis.

11 2 3 4

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Market Potential

Product Adoption

Protectablity Business Experience

ProductStatus

Route to Market

Customer Engagement

Financial Projections

What are the key elements of a good business opportunity?

Research on 5 of Canada's top angel investors showed they looked for the following 8 elements

Is there a large market for this product or service?

A Large market potential (i.e. over $20 million)

B Medium market potential (i.e. over $5 million)

C Unable to predict – likely less than $5 million

1 Market potential

Proof of market potential

Will customers in target market easily adopt this

product?

A Customers will easily adopt product or service

B Benefits harder to identify, some adoption issues

C No clear benefits, or major adoption issues

2 Product adoption

How easy is it to get people to buy?

How are you going to get customers? Proof that you can get new customers

How easy will it be for other people to copy the product

or service?

A Product patented or significant other barrier

B It will not be easy to replicate

C Anyone could copy it

3 Protectablity

Youngest person in SA with a patent

How are you going to get customers? Proof that you can get new customers

Does management have direct and relevant

experience?

A Significant relevant experience

B Limited experience

C No evidence of required experience

4 Business experience

Your experience? Board? Mentors? Adult supervision?

How are you going to get customers? Proof that you can get new customers

Product ready for market, or major work

required before it ships?

A Finished product

B Design complete all technical issues addressed

C Needs more research and development

5 Product status

Ready to scale? Quantities you can produce?

Is there a realistic market plan and route to

market?

A Realistic marketing plan / distribution partner

B Options identified – no agreements in place

C Limited thought given to distribution issues

6 Route to market

Timelines on agreements? Retail how?

Is the first customer identified? Does the

product meet a need?

A Customer in place, or committed to purchasing

B Customers engaged in development project

C No first customers identified

7 Customer engagement

Any sales? Times on purchases?

How are you going to get customers? Proof that you can get new customers

Profitable, High ROI and sustainable cashflow?

A Sound business model and cash management

B Unclear profitability and cash management

C No evidence of profitability and cash management

8 Financial projections

ROI? Profits? Sales?

How are you going to get customers? Proof that you can get new customers

Additional Tips

For a WOW pitch

1. Get your idea across in the first sentence

[BUSINESS NAME] is a [DESCRIBE PRODUCT/SERVICE] that helps [DESCRIBE CUSTOMER SEGMENT][DESCRIBE HOW YOUR SOLUTIONS SOLVES PROBLEM][UNDERLYING MAGIC].

[GOOGLE] is a [WEBSITE] that helps [INTERNET USERS][TO EASILY FIND THE INTERNET SITES THEY ARE LOOKING FOR] [FASTER AND MORE ACCURATELY THAN OTHER SEARCH ENGINES].

2. Tell a story about the problem and solution

Tell an emotional story Keep it personal

Describe the pain

3. Show rather than tell

How are you going to get customers? Proof that you can get new customers

1. Title

2. Problem

3. Solution

4. Business model

5. Underlying Magic (Competitive Advantage)

6. Marketing & Sales

7. Competition

8. Management Team

9. Financial Projections and Key metrics

10. Current status, Accomplishments, Timelines, Use of funds

4. Use Guy Kawasaki’s Suggested Layout

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