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Rayn Ong• Tech guy for 9 years
• Angel investor for 2 years
• 9 investments, 1 exit
• Work with accelerators, angel groups and venture capital funds
• Seed rounds of $250K-$1M (@ $1-4M valuation)
Angel Groups
Sydney Angels Innovation Bay
VC Fund
• Blackbird Ventures!
• Fund One 2012: $29M
• Fund Two 2015: $200M
Audience
• Most important, because they give you $
1. Customer (sales)
2. Investor
• Public, for awareness (marketing)
Purpose
• First pitch is not about selling or closing
• Get people to ask you “how?”
• Get a meeting
Elevator Pitch
• You have 10-20 seconds
• Focus on the problem you are solving
• My example: “I help early stage tech companies raise money.” (3 seconds)
• Purpose: how? + a meeting
Awareness Pitch
• Pitching competition or event, 5-10 minutes
• Focus on problem and solution!
• Example: you will see a few pitches later
• Purpose: marketing -> visitors -> customers
Sales Pitch
• You got a meeting, what now?
• 10-20 minutes, sometimes with a product demo
• Focus on your product and/or service
• How can you do things 10x cheaper, faster, better?
Team• Can this team get shit done?!
• Crazy, driven & capable team that I can have a beer with.
• Employee: 9am to 5pm, $100k salary.
• Founder: 5am to 9pm, often $0 salary.
• Talk about results and achievements.
Market Size
• How do you return 10x my money?!
• e.g. We invest @ $2M valuation today, when can you be worth $20M, and who will buy it?
• Why 10x?
• Market Analysis, TAM, SAM, SOM. (see appendix)
Business Plan• How do you get there?!
• Have a plan: product roadmap, hiring plan, marketing budget, sales channels, ramp up etc.
• Identify key revenue and cost drivers. Can you get to positive unit economics?
• Show your thought process.
Business Model Canvas
http://www.businessmodelgeneration.com/canvas/bmc
Competition
• How do we know you will win?!
• When other companies enter the market.
• Know your competitors.
• Defensible? Secret Sauce? Advantages?
Investor Pitch• Problem, Solution, Product
• Team - crazy people
• Market Size - grow to 10x quickly?
• Business Plan - how to get there?
• Competition - can you win?
Metrics
• http://a16z.com/2015/08/21/16-metrics/
• http://a16z.com/2015/09/23/16-more-metrics
• https://medium.com/swlh/diligence-at-social-capital-part-1-accounting-for-user-growth-4a8a449fddfc
The Deal
• How much do you want to raise?
• On what valuation?
• What are the terms?
• http://www.avcal.com.au/resources/open-source-seed-financing-documents
Bonus , 3 articles
• Save some legal cost by reading the following
• http://www.startupdaily.net/2015/05/australian-vc-funds-open-source-legal-documents-help-startups-save-legal-fees-raising-capital/
• http://www.startupdaily.net/2015/06/deal-terms-australian-vcs-asking-actually-unfair/
• http://www.startupdaily.net/2015/06/australian-vc-paul-bennetts-responds-startup-dailys-critique-open-sourced-legal-documents/
Keep Learning• Subscribe to their newsletter too
• https://mattermark.com/ (funding)
• http://www.saastr.com/ (subscription model)
• https://www.intercom.io/ (customer)
• http://www.hubspot.com/ (marketing)