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How to Cheat Time on Your VC Pitch – Part 1: The Last Slide

Too many startups stress about how to get their whole story into a five minute pitchVC Pitch Last Slide and they don’t think enough about how to cheat time to get more out of their pitch.

You can cheat just a bit to get the most out of the five minutes (or two, seven, ten, twelve, fifteen or whatever you’re given). This is the first to two blogs on the topic of how to cheat time — the first has to do do with the first slide and the second has to do with the last slide.

Ask yourself this – how long is the last slide up on the screen?

The answer is that in a five minute pitch event, the last slide is usually up for five minutes of Q&A. If this slide is up for five minutes, why do so many people waste this opportunity by having the slide say “Thank You” and their email. Most pitch events provide your email to all attendees, and it’s great that you’re polite with the “thank you”, but it would be much better if you could effectively use that time and that slide to reinforce the key points of your pitch.

A good last slide will reiterate the highlights of your pitch.

You can have the team, product, market, traction, the deal, or whatever you like. I have seen slides broken up into as many as six sections with key elements reinforced in each. Since this slide is up for so long, the twenty five word limit for slides in a pitch event is waived! Go ahead and toot your horn.

The kiss of death for a pitch is when nobody has any questions for the presenter. This means that either people didn’t understand your pitch, or that they understood it well and had absolutely no interest. The last slide will help clarify key points, but most importantly, it will provide key points that people can ask questions about. Sometimes people are shy to ask a question and sound dumb if they didn’t understand something. Sometimes in a big pitch event, people may even get confused and ask a question that doesn’t even pertain to your company, but might have been from one or two pitches prior. Having your key points up on the screen gib vets them the confidence to ask questions.

Of course – the other great solution to silence during Q&A is to have Back Pocket Slides that you can draw on to effectively extend your pitch if nobody asks any questions!

Startups without an Exit Strategy are not committed to their company.

fire_exit-svgI heard it again this week.  The lame startup who answered that they didn’t have an exit strategy because they just wanted to create value for their customer.  I’ve heard this so many times by CEOs who think they’re being noble by focusing on their passion and commitment to the company and not to an exit – but what I hear is that they are NOT truly committed to their business.

  CEOs who don’t have an exit plan are limiting the potential for their business.

The fundamental lie of exit denial is in the belief that creating value for the customer is the same as creating value for the business.  Think about it – if you do something really well and create value for a customer, and you’re passionate about carrying out that mission to the greatest extent possible, then wouldn’t it be a good idea to identify larger companies who shared your values and could carry out the mission to even greater extents with their additional resources, capital, sales channels and expertise? Creating value for the acquirer means creating value for the customer as well – it’s rare that anyone wants to acquire a company with no customers.

But no – you’re just creating value for the customer, and then if you do that, acquisition offers will come along….eventually.  Yes, offers will come along, but they may not be from companies that share your values.  They may be from companies that want to shut you down.  They may be from companies that want to exploit your product or customers.  Just passively waiting for a suitor to come along is a cheap cop-out for lazy CEOs who believe that uncertainty means that you have to wait for whatever the world brings you.

Companies who are truly passionate about their mission are working to develop two value propositions simultaneously – the value proposition for their “first customer” who buys their product and the value proposition for the “second customer” who buys the company. Wayne Gretzky Exit Strategy

CEOs who think about the second customer are the ones who get me excited because they exhibit deep knowledge of their industry.  Like Wayne Gretzky, the hockey player who famously said “I don’t go to where the puck is, I go to where the puck is going,” these CEOs have identified a trend and they build value for companies in their industry who will be needing their innovation within a three to five year window.

To be sure, there is uncertainty.  You can’t just pick the acquirer, date and amount of acquisition.  This does not mean, however, that you can’t research comparable transactions and identify the key players and their behaviors.  You can create relationships with the companies who will be needing your technology so that when their board identifies a need for your product/service, they know that you are a key player in the industry that would be a good acquisition target and can reach out with an offer.

Identifying multiple bidders for your exit strategy not only allows you to select 6699678_sthe bidder who most closely matches your values and goals for the company, but also allows you to demand top dollar for the acquisition.

No, it’s not all about the money, but if you put your head in the sand and just wait for suitors, you will likely end up with a lower price for your acquisition and more importantly you may fail to truly carry out the mission of your company to its fullest potential.

Create a detailed exit strategy and show everyone your passion for the mission of your company.

Why Invest in Rocky Mountain Region?

It is almost deemed common sense to follow where the money is, but one must also consider where the opportunity is as well. This is where the thought leaders get a head start and  potentially receive better returns. The Rocky Mountain region is looking favorable for investing due to recent startup activity and a lack of access to capital.

Startup Activity in the RockiesScreen Shot 2016-07-13 at 10.25.26 AM

Recent startup trends are looking favorable for the Rockies. The Rocky Mountain region states are Colorado, Montana, Wyoming, Utah, New Mexico, Nevada, Arizona, and Idaho. All of these states rank high on the Kauffman Index Startup Activity Rank for 2015.

Among these states Montana ranks #1 for 2015, and Wyoming follows at #2. Colorado ranks #4, and Nevada jumped 11 spots to place it self at #10.Screen Shot 2016-07-13 at 10.30.43 AM

Fishing for Returns

Angel investors should always consider the water they are fishing in. The Rocky Mountain region is setting itself up to look like a stocked pool. With so much start-up activity, angels can afford to be picky while also diversifying their portfolio. Not to say angels should throw their money in the area assuming one will be a home-run type of investment. Yet, they have a bigger selection to compare and contrast similar investments.

Competitive Deals
Screen Shot 2016-07-13 at 11.21.43 AM

The 2015 Annual Halo Report shows that 3 out of 4 Angels invested within their region. However, less than 18% share of all angel dollars are within the Rocky Mountain Region (this yields higher competition among the startups). Therefore, with less money coming from out of the region, and only 18% of total money within, start-ups need to build a well rounded deal to stand-out and gain an Angels attention.

(I.e. More activity doesn’t necessarily equal better returns, but it does yield more opportunity and more investment options. Always do your due diligence/invest smart, but also consider regional activity or trends.)

RVC Announces Partnership with Japan’s Future Venture Capital

Rockies Venture Club (RVC) is excited to announce an entrepreneur and investor education program partnership with one of Japan’s most prestigious early stage venture capital firm, Future Venture Capital (FVC). Read more

Demystifying Angel Investing Webinar Archive

This is a fast cool video for both angels and startups alike.  Read more

What you need to know about Angel Investor Syndication

There’s a lot to know about angel investing, but the one thing most people miss is how to syndicate a deal.  Almost every angel investment deal in an entrepreneur’s company is a syndication and there’s a lot more to it than just getting a bunch of investors together.   Read more

Is there a place for Angel Investors in Oil and Gas?

Some people think only the mega-corporations like Exxon and BP are leading the way in oil and gas investment, but Angel Investors are having an impact as well.  In Colorado oil wells can be drilled for $1.5 million – about the same amount as a typical Angel Investment Deal.  Angels are profiting from these investments – even after the recent cuts in oil prices. Read more

Venture Capital and Angel Investors Should Know About the Two Types of Cannabis Industry Investments

There are two major classes of investments you can make in cannabis companies, and every investor should know the difference. Read more

Investing in Cannabis 2.0 – How has investing changed in just one year?

What a difference a year makes.  Twelve months ago we were working with our first cohort of companies coming through the Cannabis Capital Summit and we found that the experience was very different from the tech, life science, health care and consumer goods companies we typically work with. Read more

Angel Insights: Marketing Pitch Presentation

By Thomas B. Cross email on Twitter @TECHtionary

This article was inspired by Peter Adams blog post about the The Venture Capital Pitch – Team Slides.  Here are few Angel Insights that you could consider discussing during a “deep dive” or other discussions with the start up under consideration. Read more