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Mentor Capital Program
Entrepreneur Pitch Workbook and Guide

Meeting the Investor for the First Time
1.
1

Pitch, don’t ―teach‖ them about your business:

•
•

Focus only on the things you know investors care about

•

2.
2

Get them excited about the opportunity

Present an easy-to-repeat story they can take to their partners

Investors care primarily about 3 things:
1.Basic value proposition – unique solution to a big problem

2.

Target market – whose problem does it solve?

3.

Competitive advantage – why do you solve it better than anyone else?

Source: The Entrepreneur’s New Year’s Resolution: “Will Fix My Pitch”, Bill Reichert, Garage Technology Ventures; Endeavor
2

Provide Simple Content and Effective Delivery
Content

ObjectiveExecution

3

Delivery

• Powerful, concise profile of your
business and its potential
• Thoughtful view of the role you
envision for an investor – what kind
of partnership are you looking for?

• Get the investor excited early in
the pitch about the opportunity
• Answer an investor’s top questions
• Establish your credibility as the
best person to take the business to
the nextlevel

• Clearly describe the current
business and its growth potential
- Explain your unique benefit to a
clearly defined base, solving a
precise problem
- Define exactly why your solution
will be widely adopted with
explosive speed

• Demonstrate a deep knowledge of
your market by using data
• Speak with passion that shows that
you believe in your business’s
potential

The Pitch –A Few Tips
1 You have only 10-15 minutes in the initial pitch
1.

• Hit the burning questions early and effectively or the investor won’t hear
anything else you say
• Leave time to address the investor’s specific questions and concerns
• Make back-up slides that you can use if particular questions come up
2 Average attention span of a VC?

Average length of an entrepreneur pitch?

10slides

38 slides

3 The investor should be able to give the “elevator pitch”

• They should be able to walk back to their desk and tell their colleague in 1
sentence what problem the business solves and why it’s a big opportunity.

4

The First Meeting – Investor FAQ
Overview
1.

How do you make money?

2.

What is your growth plan for the next 3-5 years?

3.

What are therisks in your business and how are you reducing them?

Financial Metrics
1.

How much of the revenue is recurring or under long term contract?

2.

How much of next year’s projected revenue do you already have under contract?

3.

What share of your revenue do your largest clients make up?

4.

How do your margins and revenue growth vary by product lines?

Customers andCompetitors
1.

Who are your competitors and what are the barriers to entry for new companies?

2.

How ―sticky‖ is your business? (i.e., how difficult/expensive is it for customers to switch to competitors)

Capital Structure
1.
2.

How much money are you looking to raise?

3.

What is the planned use of capital?

4.

How will the capital help you grow and mitigate risk?

5.What is your exit strategy?

6.
5

Who are your current investors, if any?

How much equity and control are you looking to share with an investment partner?

Framework for The Pitch

1

Business
overview

2

The
opportunity

• Company overview • The problem
• Tagline – what your • Market
business does in 1 • Market size
sentence
• Current trends
– Core value
proposition– Target market
• Team

6

3

The solution

4

Competition

5

Business
model

6

The ask

• What specific
• Why your product is • Business/revenue
solution you offer to better than
model (how you
whom
alternatives
make money)

• Financing
requirements /
milestones

• Delivering the
solution

• The opportunity for
investors – ―the ask‖

• Benefits/value...