Sample Template for Pitching Angel Investors (Your Name, Your

Sample Template for Pitching Angel Investors (Your Name, Your Phone, your@companyemail.com) Presentation to Big Money Investors/Strategic Partners May 2006 Summary • Team  5—each with 10+ years designing advanced widgets  Mostly engineers; two with extensive sales experience • Product  Radical new widget: costs 90%,  revenues 50% • Market  $500M market today in 5 verticals, growing 20%/yr • Regulatory (if applicable)  FDA 510k already in progress • Competition  Current: large players with old technology; two small entrants  Future: large players will adapt, but will take 5 years to retool • Financials  $10M in revenue in 3 years  Seeking $2M, will get to cash-flow break even Your Name, Your Phone, your@companyemail.com Team Brings Sector, Startup Skills • Widget Man, founder, CEO  10 years in widgets  Formerly VP Product Dev., Widge-R-us • Widget Woman, founder, VP Engineering  MIT PhD, Aerospace Widgets Dept.  Dissertation: “This actually is Rocket Science…”  4th Startup: 2 small successes; 1 going concern; 1 failure • Three Others  Complementary engineering talent  Two with 7+ years sales & marketing experience Your Name, Your Phone, your@companyemail.com Product Changes Market Dynamics • Cuts Customer Costs  90% reduction in customer hard costs  Reduces widget consumption, increases performance • Increases Customer Revenues      Plants currently at 100% capacity Widget retooling #1 limiting factor Can increase output, with higher quality Customer can charge premium for more product Estimate 50% increase in revenues • [Add Real-World Examples; maybe 2-3 slides of case studies] Your Name, Your Phone, your@companyemail.com Value Proposition to Customer Item Economics 1 Year Supply Our Widgets Cost Savings to customer Increased revenue through price increase -$500,000 +$5,000,000 +$5,000,000 Increased revenue through more sales Total ROI Payback period Your Name, Your Phone, your@companyemail.com +5,000,000 +$14,500,000 30x 12 Days Radical Design Changes Economics Widget Implant (25 patents: 5 issued, 20 pending) Outputs: Methane, etc. (2x increase, reduced impurities) Inputs: Grass, Hay, Business Plans (90% reduction) Your Name, Your Phone, your@companyemail.com Business Model • Software-as-a-Service  One-time fee for hardware: $100  Monthly subscription for continuous data updates: $4.95 • Data Key to Business Model  Inputs, outputs in careful balance  Depends on climate, which is always changing  1M-record cow-output database by ZAG • [Further discussion of microeconomics, show your math…] Your Name, Your Phone, your@companyemail.com Market Growing, Easy to Reach • $500M Market Today  Concentrated in 12 major customers  Distributed among another 100 minor ones • No one customer has market power  Too many to collude  Minor players quickly expanding, threatening majors • Prior customer relations  We have sold to 10 of 12 majors  Have personal contacts at 25 of next 100 Your Name, Your Phone, your@companyemail.com Regulatory Approval Likely Soon • FDA In Final Review  510ks submitted 1 year ago  Handful of additional questions • Medical Advisory Board Experienced in Area  Invented “Bull-o-meter,” approved in 1998  Received approval for other similar devices Your Name, Your Phone, your@companyemail.com Competition Exists, Manageable • Existing Players  3 Leaders: Widget Wampum, Widget Global, Widgmo  All hay-based technology • New Entrants  New Widget Vision • Transdermal approach • Only 20% cost reduction, no performance increase  New World Widgets • Unproven laser technology, possibly fatal • Claims 95% cost reduction, 5x performance increase • Our patents should block Your Name, Your Phone, your@companyemail.com Financial Projections 2006 2007 2008 2009 Revenue COGS Net Income $0 $0 ($1.7M) $750K $100K $150K $3.0M $400 $500K $9.0M $1.2M $2.1M • Exit Opportunities  Sell to incumbents within 3 years; already had one inquiry  Sell to new strategic: two big firms interested in this space  IPO possible but not capital efficient, better return with less $ • Why You as Investor?  Right size investment, expertise in sector  Trusted partner Your Name, Your Phone, your@companyemail.com Conclusion • Team experienced in sector • Product changes market • costs 90%,  revenues 50% • Market $500M, growing • Competition manageable • Low capital requirements, high growth Widget Man, CEO (617) GO-WIDGET widgetdude@widgetco.com Your Name, Your Phone, your@companyemail.com