You are on page 1of 48

Pitching your Business for Funding?

Use this template!


Includes a live example inside!

Quick tour
I have seen first time entrepreneurs struggling to get
their funding ppt right.
This deck (specifically targeted at Indian
entrepreneurs) helps to solve that problem by
suggesting what can go inside the ppt. There is a live

example later.

This slide can also be used by entrepreneurs to reflect


on their own business and understand it better!
I volunteer to be test driven (be the dress rehearsal
audience) for your pitch and give you feedback!
IMPORTANT WARNING: This is not the only way to
make a funding pitch. There are important Tips &
Disclosures you MUST read (Slide No 49) before you
attempt to make your own deck.

TEMPLATE
Start of Template

TEMPLATE

State your Business/Service


Product/Platform Name clearly

Notes:
1.Mention your Companys name only if
required.
2.State a tagline ONLY repeat - ONLY if you
really know what your business is about, or
its an existing, established tagline.
(Else, you risk creating an impression about
your business that may spook the investors
and/or start the discussion with a debate.)
Read Tag Lines are out, Benefit Lines are in.

TEMPLATE

Benefit Line
What does your business do, for
whom, and how?
Try and keep it really crisp

TEMPLATE

What is the Problem


you are addressing?
Clearly state the need or the pain
that you have identified.

TEMPLATE

Your Insight/s
to Solve the Problem
Powerfully & crisply explain how you have
thought through a solution of this big
pain-point that you have discovered.
This will probably be the most important
slide. The problem identified and solution
found should be business worthy enough
to proceed from here on.

TEMPLATE

Visual Reference
At this stage, it would be great if you
show the PROBLEM and the SOLUTION
visually.
If your Startup is a website/app set up
a live link so that you can present it
directly if required.
Investors like to SEE the solution just as
much as they can imagine it.
This also sets the stage to prove that you
have a prototype built out already!

TEMPLATE

Your Business Proposition


Describe crisply at a high level, what
is your business proposition?
What will you offer, to whom, why,
for what and the benefits of doing so
for you.

TEMPLATE

How does your business work?


In simple language, explain the PROCESS
of executing your business.
Use a flow chart, a logical sequence of
screens or a live example (if you are very
confident of it working*)
(*I have seen Internet connections fail,
VCs not able to connect to their wifi
setups, websites not responding, etc etc.
Its best to leave live examples for later.)

TEMPLATE

Do you have proof


of traction? (if any)
If there is any proof of early success,
show it! Talk about audience
growth/customers using the
service/brands signed up/clients who
have paid/etc etc.

TEMPLATE

The Market Size and Potential


What is the market opportunity? How
LARGE is the market for your solution?!
Describe your vision of the long term
market. How and why your solution will
remain relevant (and grow) in the next
3-5 years? (Simply said, your concept
should be forward looking not
backward thinking.)

TEMPLATE

Competition Mapping
Explain boldly, without fear, who is your
competition, what they do, how ahead
or near are they to you, who has
funded them, has there been any
acquisitions in this space?
Clearly state how different you are from
the competition.

TEMPLATE

Go to the Market Plan


How will you go to market? What will
be your strategy? Who will you go to
and how?
Its best to show a literal 120-180
day plan that clearly bullets out the
most important tasks you will
achieve in your roll out.

TEMPLATE

What is the Core Strategy?


Without hocus pocus and fancy
strategy charts, just explain the No
brainer reason why your business will
succeed!
The investor reading this slide should
say, Oh yeah, this makes so much
sense!

TEMPLATE

Financial Modeling
Its important to discuss HOW to think of revenue
MODELING NOT HOW MUCH revenue you will
make here.
The investor needs to understand that you get the
MODEL right then assume scale will apply itself.
Having said this, have a clear understanding how
large your business can ever become in revenue
topline etc (Its a fav VC question, How large can
this become?)

TEMPLATE

What are you looking for?


Since its usually the money simply
state it!
If its relationships, partnerships with
portfolio companies, etc., ASK here!!

TEMPLATE

Cash Flows
Dimension the COST of doing business
that you want to build here.
Take an 18-24-36 month window and
detail the COSTS (capex and P&L) here
(not revenues) to demonstrate what will
it take to BUILD the business.
Please factor-in some survival salaries for
yourself and your partners in this slide.

TEMPLATE

Revenues and Scale


If you have a clear vision, try and
tabulate a SIMPLE table to
understand Revenue projection.
Please exclude silly calculations like
depreciation etc it immediately
sends a wrong signal to an investor that this is a silly academic exercise.

TEMPLATE

Threats/Deaths/Weaknesses
Can you be bold in detailing what could
kill your business? What is your darkest
nightmare that could come true? What
are your weaknesses?
It reassures the investor that you have
thought with pessimism as much as with
optimism and also saves him/her the time
and energy from finding loopholes/pitfalls.

TEMPLATE

Outcome of the Business


What do you expect your business to
become?
I would like to hear realistic ideas of
WHO will buy your business and why
(if its an acquisition etc.)
If you think this is IPO stuff, then
prove the companies in your industry
who have listed (if any?)

TEMPLATE

The Founders and Team


I usually present this last. Some decks
present this first.
The reason I keep this last, is that in the first
few minutes itself, the entrepreneurs and
investors (me for sure) discuss what each of
them have been up to/done in the past.
Please keep the points interesting and
relevant. No one wants to read your biodata here!

TEMPLATE

Did you have these Questions in


mind?
I do this for my pitches.
I mention some mock questions that may
further explain the pitch better.
Also, if a couple of investors ask you
questions, then I can assure you that others
will probably ask you the same ones. Add
these here, as you go along your pitch
process!

TEMPLATE

Thats it! Add the Thank you


slide!
Notes:

I NEVER advocate discussing


valuations and what equity will you
give away etc at this stage.
Investors want to think, discuss and
come back with a conversation. Keep
things and some topics open.

SAMPLE PITCH ONLY!


Sample Pitch

SAMPLE PITCH ONLY!

Gamecurry.com!
Taking hot, free online
games
to Smartphones.

SAMPLE PITCH ONLY!

Gamecurry
Wants to partner owners of successful
online games to migrate their titles
to Smartphones, and in doing so,
create a massive new revenue
stream for the games owners and
themselves.

SAMPLE PITCH ONLY!

The Market Problem


Online web games attract over 600 million
unique online players a month, but even
the largest websites in this business earn
meager revenues.
The reason for low revenues is that these
online games earn revenues only via
advertising something that never scales
and is difficult to optimize beyond a point.

SAMPLE PITCH ONLY!

Our Insight
If a popular online game is converted into a mobile game
and offered to consumers as a free-mium game (free for
the first few levels and charged for the subsequent
levels), then the revenue potential from these games
explodes.
If a game has succeeded online, there is a good chance
that it will work on smartphones also because
consumers like great game mechanics.
Example Angry Birds generated over 300 million $ last
year. Its a loose copy of a very popular online game
called Crush the Castle (a game that you have probably
not heard of and one that did not generate any
significant revenues).

SAMPLE PITCH ONLY!

Under the Hood


Illustrative example of how a smartphone game
generates 200% of the revenue of an online game
Descriptions

Online game

Smartphone
game

Players who play per day

1000 players

1000 players

Ads generated (10 ads per player)

10000 ads
served

10000 ads
served

Revenue generated @ OMR 1.00 CPM


(per 1000 ads) per day

OMR 10.00

OMR 10.00

Cost of playing all 40 levels

Nil

0.99 Baiza cost


after the 20th
level

% of players who will pay to play


additional levels

NA

2%

Paying consumers

NA

20 players

Payment received from players -70

NA

OMR 15.00

SAMPLE PITCH ONLY!

Our Business Proposition


Is to approach popular online game owners and
propose that Gamecurry be allowed to convert
their game to a smartphone game without any
cost to them and also with a promise to share a
50% revenue upside (after deducting our stated
costs of making the game).
As a Company, we want to fund the cost of the
converting popular online games and benefit
from the upside when these titles become
successful.

SAMPLE PITCH ONLY!

How the business process will


work

SAMPLE PITCH ONLY!

Proof of Concept
We worked with online games Company
games2win.com on this concept and were able to
prove the hypothesis with one of their successful
games called Super Mom:

Description

Super Mom Free Super Mom Paid


Web Game (link) iPhone Game (link)

Revenue earned in 1st


week of Jan 2012 in
US$

$ 295.85

$ 1575.00

Revenue stream

Only ads

Ads and downloads

Per day revenue

$ 42.26

$ 225.00

Cost of development
of the game

$ 3000 (funded by
the company)

$ 3000 (funded by us)

ROI time of the game

75 days

15 days!

SAMPLE PITCH ONLY!

The Market Size and Potential

SAMPLE PITCH ONLY!

Competition Mapping
Company

Primary
Audience

Revenue Stream

Estimated
Annual
revenues
2011

ngmoco

Kids and Teens

Virtual Goods on iOs

10-30 Million
OMR

Rovio (Angry
All ages
Download of Games 50-60 Million
The early movers are scaling well in revenues. They will be our
Birds)
OMR

primary competition (in luring titles from online games

Outfit7
(Tom
Kids
of Games
10-20 Million
companies
for
development Download
and marketing
by them).
Cat)
OMR

Its possible that online game companies will want to migrate


their online games to smartphone games themselves.
We will win because we will go after smaller, lesser recognized
and sometimes riskier, but better researched titles.

SAMPLE PITCH ONLY!

Go to Market Plan

SAMPLE PITCH ONLY!

Core Strategy why will Gamecurry


work?

SAMPLE PITCH ONLY!

Whats the Financial Model of


GameCurry?

SAMPLE PITCH ONLY!

What are we looking for?


3 million OMR cash investments
(covers 3 years of cash cost and
basic Capex)
Introductions to online game
companies and game owners with
whom we could get started
immediately.

SAMPLE PITCH ONLY!

OMR 3.0 million over 3 years to be


used for:
Cost for making 24
Freemium Games in 36
months

Cost per
month in
US$

Costs for 36
months in US$

Notes

Salary Cost of 3 founders

15,000

540,000

Occupancy Cost
General Office Overheads

5,000
2,000

180,000
72,000

Technology Costs
Game teams 7
engineers/programmers, 5
artists, 3 creative, 2
marketing, 1 admin and
accounts
Travelling and
Accommodation
Marketing and Advtg

4,000

144,000

CEO, COO, CTO


Office rent for 25 seater office
in South Mumbai
General office costs
Costs of Hosting, Bandwidth,
etc.

TOTALS

36,000

1,296,000

10,000
10,000

360,000
360,000

82,000

2,952,000

Averaged at 2000 OMR per


person per month
Local and International
traveling, etc.
Test marketing, PR costs, etc.
Effective cost of each game =
123,000 OMR

SAMPLE PITCH ONLY!

Revenues Potential of Freemium


Games
Key Metric Addressab % who
le
convert
Audience

Revenue
per user
over the
game life

Revenue
Potential
per
game

Smash Hit

15 mn

20%

3.00 OMR

9 million

Huge Hit

15 mn

15%

2.00 OMR

4.5 million

Hit

15 mn

10%

1.50 OMR

2.25
million

Just Miss

15 mn

2%

1.25 OMR

400 k

Forgive and
Forget

15 mn

0.5 %

1.00 OMR

75 k

Tragedy
1512mn
0.1%
0.7041
OMR
10k
Angry Birds has
million paying
consumers from
million downloads

conversion of 30%
Talking Tom has 6 million paying consumers from 40 million downloads 15%
conversion

SAMPLE PITCH ONLY!

Conservative Revenue, Profits and


Cash flow Projection of Gamecurry over 3 years
Key Metric
performance of
the 24 games

Games that
Revenue
we will
Potential per
create in this game in OMR
category

Total
Revenues

Smash Hit

Nil

9 million OMR

Huge Hit

Nil

4.5 million OMR

Hit

2.25 million OMR

2.25 million

Just Miss

400 k OMR

1.60 million

Forgive and
Forget

10

75 k OMR

0.75 million

Tragedy

10k OMR

0.09 million

Totals Revenues

24 total
games

5.50
million

Less costs held


back

3.00
million

Revenue available

2.50 million

SAMPLE PITCH ONLY!

Our Threats/Deaths/Weaknesses
Bad choice of choosing online games
results in very poor hits and
unsuccessful games
Competitive market leads to games
companies demanding minimum
guarantee
Changing revenue shares policies of iOs
and Android market

SAMPLE PITCH ONLY!

Outcome of the Business

SAMPLE PITCH ONLY!

The founders and team

Mahesh
Khambadkone
CTO
He knows how to
make games!

Alok Kejriwal CEO


He knows how to run
a Company, get it
financed and how to
market it and its
products!

SAMPLE PITCH ONLY!

Did you have these Qs in mind?


Q - Will gamecurry.com be a distribution channel also?
A Yes. We will have a website and an app, but will not
build it as a destination site. We will let consumers
discover it as they go along.
Q Who will own the IP of the games developed by you?
A Its a good question. We will own the IP in the 50-50
ratio or higher depending on how we negotiate the
deal (e.g. IP ratio starts with 100% when we launch
the game and sets to 50% when we recover cost).

SAMPLE PITCH ONLY!

Did you have these Qs in mind?


Q How will you drive awareness of the apps? Isnt
marketing a big budget that doesnt feature in
your costs?
A Well, we believe that selecting the right game
type and title is half the battle won. Also, we will
extract certain media promotion from the games
publisher since it helps them. Finally, we believe
that apps get discovered virally more than
anything else. We just need to make fun,
exciting apps!

SAMPLE PITCH ONLY!

Thank you for your


attention!

You might also like