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How to Write Business Plan and
Pitch InvestorsSteve Bell - Trilogy Ventures China
http://blog.trilogyvc.comhttp://stevebell.renren.com
RenRen: 史蒂夫 steve bell
Portfolio Trilogy VC
ZoZou.cc
Raising early stage capital in 2000
EASY
Raising early stage capital 2011is hard
•“Call me when you get bigger”
•“Let’s talk again when you have proven your business model”
•“We can met after you prove how it scales”
Develop the plan•Problem? What is it?
•Solution? Show it
•Market? How is it big?
•Vision? What are you building?
•Business Model - How does it make money
•Milestones - Get to profit or more investment
what is better.....
Raise < 1,000,000 ?
Or
Raise > 1,000,000 ?
Low capitalForces Focus
2000’s capital INTENSE models are
DEAD
✤ Only external proof matters
✤ need 10,000,000 something (RMB, users)
✤ show the business can be HUGE
✤ before running out of money
✤ “many tries” do do do do....
•10 -> 1000 ->1000000
EXTERNAL PROOF
Don't invest hereDate: FEBRUARY 16, 2011 1:39:34 PM GMT+08:00To: Stephen Bell <[email protected]>Subject: Re: Throw Out Your Business Cards, xxxxx iPhone App Is Now Live
sure, but for 10x less we dont need investment, we can invest ourself
And we can forget about a nice office, hiring 2nd group Eng people, all the symbian version, all the marketing, all the IP, legal and so on..
Invest Here:Example Companies - getting to
10,000,000
• http://www.DroidHen.com
• http://www.Lezi.com
• http://www.Jiathis.com
• http://www.Fenzhi.com
Lezi.com
• ZJU student team - 3rd startup
• About 1,000,000 rmb investment
• Profitable under 6 months
• 2 years later.... 5,000,000 per month rev. , global, 250 people, Growing....
Jiathis
• Social sharing
• 9 months old
• 1/2 china Internet population reached
• 80,000 websites use
• 500,000 unique IP per day share
Only External Results Matter
Sure I have results - but I want to GET
FUNDED!
How to Pitch
•Be Simple
•10 Slide Deck
•No more than 20 words per slide
10 Slide Deck
10 Slides1. Title: Investor Presentation - Company Name, contact info
2. Vision
3. Problem - Clear statement
4. Solution - “Wow Cool”
5. Market Size - How Big
6. Team
7. Progress to date
8. Grow Plan
9. Raising XXXX RMB to do ________
10 Slide Deck
• About EXTERNAL RESULTS
• SIMPLE SIMPLE SIMPLE
• FEW WORDS – Simple.
• 80% of Slides EXTERNAL RESULT
Slide 1 - Name
• Company Name
• Founders contact info
• Title – Investor Presentation
Slide 2 - VISION
• I see a world where _______
• BIG Vision
• Investor -> WOW
• Change the World
Slide 3 - Problem
What is Problem you solve? Who do you
solve it for?
Slide 4 - Solution
• Show it – (one slide)
• One thing
• Simple
• Graph showing EXTERNAL METRIC growing exponentially
• SHOW CYCLES – fast iterations
• Real Customers using product
Slide 5 – Progress to Date
• Who SPECIFICALLY are your customers – describe them intimately and tightly
• How big now?
• How does it get bigger
Slide 6 – Market Opp
• Can this team make a huge company?
• Full Team
• Relevant Experience
• Results to prove it
Slide 7 – Team
• How do you get customers
• NO Marketing Spend!!!!
Slide 8 – Grow Plan
• How Much for XX Months
• Show what RMB does
• How many new customers? Etc.
• External METRICS
Slide 9 – Raising RMB
If you wanna do MORE, you gotta do
LESS
Who to Pitch• Size - Less than two million RMB
• Angels
• Seed Stage Fund
• More than five million RMB
• early stage VC
• Sector - Lot’s of public info on who is investing in what sectors etc..