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ì POEM® 302
TechnoVision
Pitching POEM to Angel Investors
TOMI DAVIES
Content
1. WHY YOU?
2. PROPOSITION • The Business Idea • The Market • The Problem/Opportunity • The SoluEon • The Customers • The CompeEEon
3. ORGANISATION • StartUp Team • GeJng to Market
4. ECONOMICS • Customer Economics • Financials
5. MILESTONES • History • Current Status • Key Milestones
Why are you pitching?
ì Share your vision and show your passion for the business.
ì Demonstrate your understanding the need for mentoring, access to business networks & funding and be realisCc about how it can help your startup succeed.
ì Illustrate what the investors ability to add value in ways other than providing capital, such as challenging your thinking, enhancing your credibility and helping you make contacts in your market will mean to your startup.
What’s your POEM?
PROPOSITION The Business Idea The Market The Problem/Opportunity The SoluCon The Customers The CompeCCon
ORGANISATION Your Team GeLng to Market
ECONOMICS Customer Economics Financials
MILESTONES Your History Current Status Key Milestones
P: The Business Idea
þ Express your idea in one sentence.
þ Be concise and convincing.
þ Is it a big enough idea that has the potenCal to earn outsized returns and generate real wealth for investors?
Why should I be excited about this
startup?
P: The Market
þ Describe the opportunity you have to create revenues.
þ What are the margins?
þ What’s your total available market/return?
þ What would your revenue be if you got 100 percent of your target customers paying what you expect?
Is this market/opportunity big enough to yield
sustained growth and market share
leadership for a highly valued investment?
P: The Problem/Opportunity
þ Describe the problem you are solving.
þ Show that you know the problem and the opportunity!
þ Who is the target customer? þ does he/she have buying ability
and authority? þ what problem does the
customer have today? þ why is that a big problem, why
is it his/her biggest problem?
Are there a significant enough number of “good”
customers who care enough about this problem to pay for a
soluCon?
P: The Solution
þ Define and arCculate the soluCon.
þ Show that you have really come up with a soluCon that is truly innova&ve and value crea&ng.
þ Did you find it due to exclusive domain experCse or intellectual property that is really hard for others to match?
Will the soluCon give the startup a compeCCve
advantage?
P: The Customers
þ Share profiles of those who have agreed to pay for the product/service.
þ If the product/service is sCll in “beta test,” present specific customers who have provided credible evidence that they are ready to buy the product/service and will work with the company to help improve it over Cme.
þ Who are the customers that are really waiCng to pay for this service?
Are there customers that ma\er with a high willingness to pay?
P: The Competition
þ Share specific strengths and advantages of your top two or three compeCtors,
þ Create a matrix of the compeCCon with the variables that ma\er and present a one/two-‐liner on each of their stories (funding, etc.)
þ In one/two sentences why can you beat each of them?
How is the startup posiConed in the
landscape against all the other valued companies playing in this category?
O: Your Team
þ Present profiles of the top team members. (Directors, Advisors & Management)
þ Include quick bullet points about their relevant past.
þ Why are they the team to beat in the industry sector?
Is there a world-‐class team in place with relevant skills and a solid track record to
pull this off?
O: Getting to Market
þ Explain how will you get in front of the customer (direct, indirect, etc.) so that your product or service will sell quickly, easily and with a short sales cycle.
þ Address the issue of accessing the customer.
þ Which channels will you use to get to the market and how?
What are the ways and channels this startup will get its product to customers profitably?
E: Customer Economics
þ Show that you know what customers pay, what it costs to service them, and what it costs to acquire them.
þ What are customer-‐retenCon rates that will result in compelling unit economics?
þ What is the rate of return on new customers?
þ Can your startup reach a broad, diverse customer base across industries/geographies inexpensively, and get big revenue out of them?
Do people who are the ulCmate decision
makers care enough for the product or
service (i.e. they are paying)?
E: Customer Economics
þ Present a chart outlining financial projecCons.
þ On the horizontal axis: last year, last two and next two quarters, next year, two years out, and three to five years out.
þ On the verCcal axis: key metrics such as number of customers, big revenue lines, COGS, gross margin, big expense lines, net income, cash flow, and EBITDA
þ How much will you make for each dollar invested? Over what period?
Are the unit economics, gross margins and
profitability believable and compeCCve?
M: Your History
þ Describe your history of achievements.
þ Detail what investments have already been made including yours
þ How far did each investment go and what did you do with it?
How much has been invested and what difference has
investment in this team made?
M: Your Current Status
þ Present a factual current status.
þ Detail how all the risk idenCfied through research has been managed and any major unsolved technical problems that may remain.
þ Where are you today financially? People? Product/Services?
Are the company’s products/services
already marketable or Is there sCll a lot of research and
development remaining to be done?
M: Key Milestones
þ Share tangible major milestones, which can be hit quickly to prove the value proposiCon and indicate that the team can address its market, allowing a big step-‐up in value for it as a company.
þ Show you know when to expect the next round of funding.
þ How will the growth of your company be sustained?
How much progress will the company be able to make with the
funding they are seeking?