These
guidelines were prepared a
venture capitalist.
They provide you with some
tips on how to make an effective presentation of your venture
to prospective
investors. To learn
how to prepare it, see
"8 Issues in 8 Minutes: How to Prepare and Effective
Venture Fair Presentation"
by Terry Collison.
→
3Ws of
Venture Investing
|
The history of
venture
financing is littered with the carcasses of truly worthy companies that just
never made it through
→
financing.
That’s why I’m so dedicated to
giving
→
Entrepreneurs
the keys to a potential investor’s brain.
You must plan your pitch based
on an awareness of how the investor is likely to be thinking.
→
Understand
EGA
of Your Audience
Then you must communicate to
the investor that you intend to
present your information in a
way that will help the investor assess whether this opportunity represents a
"fit" with the investor’s interests and capabilities
(notice: I didn’t phrase that in terms of "whether or not this is a ‘good’
investment").
Finally, if there is a fit,
you must indicate to the investor how you would be interested in proceeding ("As
soon as the funding is committed, our company intends to do X, Y, and Z") and
what the results might look like (here, a "qualitative" picture — industry
collaborations, exit acquisitions, industry market-share percentages, etc. — can
often be more useful than reams of "quantitative" info,
financial forecasts, etc.).
→
7 Routes to
High Profits
→
Revenue
Model
So much for the content. You
know
the 8 key issues that have to be covered. |
Pitch for Investors
>> 6Ws
of the Pitch for Investors
|
Now for the finesse part: the
all-critical delivery
of your message.
When it comes to
→
making a presentation,
the key mistake made by most
entrepreneurs (and mere mortals as well) is that they practice their
presentation by "saying it in their minds."
Only.
It’s fascinating to realize
how rapidly one can do a presentation in one’s mind and, by contrast, how long
it seems to get the damn words out when doing it "live."
Therefore, use an audiorecorder, use your wife, use your dog or even use your bedroom mirror but DO THE
PRESENTATION OUT LOUD and remember to WRITE DOWN YOUR START TIME AND YOUR FINISH
TIME and then calculate the elapsed time.
Here are the facts involved
with how long it
really
takes to do a typical presentation: |
Type of slide
|
The best
presenters ever
|
Less
experienced mortals
|
Type A: The "title" slide" |
30 seconds from being
introduced
|
3 minutes from being
introduced
|
Type B: each of a presentation’s two (2) or three
(3) "major" slides |
2-1/2—3 minutes each
|
5—10 minutes each
|
Type C: any slide where 2 or 3 lines will be cited
or pointed to in order to be sure that the audience "files them away" |
1 minute
|
3 minutes
|
Type D: any slide which is included just so you
can say "and these are other important issues that are involved in what we are
doing" but without your going into any details |
30 seconds
|
2 minutes
|
Type E: the "concluding" slide in the presentation |
1 minute
|
3 minutes to infinity
|
|
As an exercise, try
identifying each of your slides by type (Type A, B, C, D, or E) and multiplying
by the appropriate "typical" time requirement shown above. Hmmm.....
When I’m first organizing a
pitch on my own, for planning purposes I figure on an average of 3 minutes per
slide. Then I generally don’t like the arithmetic implications of my trying to
pack so much info into the budgeted time. So (A) I decide to eliminate (or
condense or combine) some of the slides, (B) I decide to change some of the
slides from Type B (above) to Type C (the content of the slide remains
unchanged; only the length of time I talk about it has changed), and (C) I
re-figure the timing based on an average of 2 minutes per slide.
Then because I know I’m
probably lying to myself, I DO THE PRESENTATION OUT LOUD and actually TIME IT
(just as I am suggesting that you do).
When I do my own presentation
out loud, I confront the fact that — smooth-tongued devil that I know myself to
be — I still can’t make the words come out sounding like a normal person.
So I set off to practice. |
Presentation of Innompic Games by
the
Founder
Presentation of
mega-innovations by Innompic teams
→
6+6 Drivers
for Entrepreneurship
|
My personal rule:
I try to do a presentation at least half a
dozen (i.e., six) times OUT LOUD.
It’s amazing.
This technique really works.
My very last piece of
advice (to be re-read the morning of the presentation or incorporated into
your presentation as a note that you will see before you start talking). It’s
simple:
Audience-members will be more
inclined to pay attention to what you are about to say and they can understand
you better if — before you start to speak — you simply (A) take a deep
breath, (B) make a silent pact with yourself that your first word will not be
"Well..." (or "Uh" or "Ummm"), and (C) SMILE (this last is the most
important).
And, oh yes... as you proceed
through your presentation,
KEEP
SMILING (this is called the "Figure Skater’s Rule).
You don’t have to look goofy.
Just look pleasant.
Remember, you enjoy
talking about this stuff because, yes, you enjoy what you’re doing.
With luck, your pleasant
demeanor communicates to your audience (A) that you may be a decent guy to work
with and (B) that they too might enjoy coming on board.
|
Venture
Marketer
>>
Present with Passion
|
So here’s a large-print version that you can toss
on top of the foils as a reminder:
(A) Take a deep
breath
(B) Your first word will not
be "Well..."
(C) SMILE!
(Keep a smile "in your voice" and look pleasant
throughout your entire presentation)
|
|
Bear in mind that you yourself
know so much detailed information about the industry that you naturally talk "at
the margin" (because this is where, for you, the information and the
distinctions are most meaningful).
But for folks outside the
industry or (worse) for people who have just a little knowledge, it is critical
for you to be clear and concise and focused and always organized and compelling
in what you say. "Basic" is better than "fancy."
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|
|
Remember, you will start your
presentation with a clean slate. The bias is in your favor because the
participants know
that you wouldn’t be there to make a presentation unless your company had
somehow been judged to be worthy of the opportunity to do so.
You can employ the time in any
way you deem to be effective. But you get only one shot.
In this setting, details are
your enemy rather than your allies. Therefore, use detailed info to buttress
your "big picture" themes and the arguments in favor of the investment
opportunity. Resist the temptation to use details as the fundamental
building blocks of your presentation.
Your goal is
not to have
→
investors "sign up" at the end of your presentation. Your
goal is actually "negative" goal. It is to prevent "bombs" being lobbed at you
in the form of questions from the audience. Your "positive" goal is to motivate
investors to contact you subsequently for a more serious discussion.
Whenever an
entrepreneur "just
talks," he or she is usually a true master of his or her field. It happens quite
naturally. Go with this side of your personality.
Remember that you never get
a second chance to make a positive
first impression.
Here is one effective way to
get listeners on your side by beginning with something sort of self-effacing
such as
"My name is (Slide #1) and
I am the founder and President of XYZ.
"I have been involved in the
development of several previous technology solutions involving .
"That experience came during
my affiliations with other companies in the industry including .
"Now before we get into the
presentation, I must confess that I sometimes let my personal enthusiasm and
fascination with the details creep into everything I’m saying. For this
presentation, I’ve promised myself to focus primarily on just a handful of the
major issues (put up Slide #2 with the bulleted "outline.")
"Here are the issues that I
want to discuss with you this morning..." (then "name" them...)
(Put up Slide #3 and
continue...)
You’re on your way!
|
→
10 Rules
for Building a High-growth Business
→
How To
Discover Opportunities
→
Startup Business Plan
→
Business Model
→
8 Key
Entrepreneurial Questions
→
Venture Financing:
Key Documents
|