Winning Investor Interest:

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Winning Investor Interest 3 Keys to a
Successful VC Pitch John Zagula, Partner Qiming
Venture Partners Date 24 May 2006
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• 1 in 100
• Business Plans Get a VC Meeting
• Companies Get Funded

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• How to gain VC attention?
• How to hold their interest?
• How to persuade them?

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3 Simple Keys to Success
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Agenda
Make a Strong Opening Move to Establish
Relevance and Credibility
Gambit
Tell Your Story in a Compact Package, Quickly and
Clearly
Nutshell
Give Them What They Want, Clear Proof/Benefit of
Whats In It For You
Gift
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What is the Opening Gambit?

• Anecdote Dont Start Cold
• Tell a story about yourself
• Personal, relevant, impressive
• Insight Dont Assume Understanding
• Explain the genesis of your idea
• Link to reason for your business
• Hook Dont Assume Interest
• Take them from Point A to Point B
• Title your pitch as the opportunity

Gambit
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Turning 300M Phones into iPodsMaking Money from
Every Song

• Bill Valenti
• CEO - Melodeo

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Example Melodeo China

• Anecdote Customers Told Us
• Record Labels Need China Strategy
• China Carriers Nothing Like It
• Insight Fill Obvious Need
• But We are a U.S. Company
• So Invest in China/US Partnership
• Hook From Situation to Big Future
• A Getting nothing from Music in China
• B Exploiting giant mobile phone base

Gambit
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What is the In A Nutshell?

• Elevator Pitch Dont Ramble
• Take a very short time
• Outline the opportunity, case, proof
• Agenda Dont Lose Track
• Map out the order of your argument
• Follow it let them know where you are
• Template Dont Get Fancy
• Use a pattern and stick to it
• Problem/solution, numbers, list, etc.

Nutshell
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in a nutshell
Giant Problem
Healthcare 1.7 trillion, 15 of US GDP 23B
lost in incorrect claim transactions
Legacy Alternatives
Current solutions manual, error-prone Outside
providers lack domain expertise
Proven Solution
Banking analytics applied to healthcare
Standard-source of provider-related info
Veteran Team
Proven track records of success Directly led
500mm in value creation
Exceptional Return
Demonstrable ROI, recurring revenue ?M capital
5 years - ? M/? EBITDA
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Example Enclarity

• Market big and growing
• So the exit will be large
• Competition beatable
• So there is a better chance of success
• Product fast to market
• So it doesnt take too long
• Team great execution
• So the VC has little work to do
• Business clear and profitable
• So the exit will be large

Nutshell
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What is the Gift?

• Pattern Match Dont Be Unfamiliar
• Category, comparables, momentum
• Reduced risk of failure
• Positioning Dont Be Stupid
• Exploit real gap, clear strategy
• Increased chance of success
• Plan Dont Be Vague
• Concrete use of funds/clear destination
• Well placed investment

Gift
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Example For Position Only

• SeaMobile
• Western Wireless of .
• Built Cable industry
• Ice.com
• BlueNile for Regular People
• Been in jewelry business for 100 years
• mPire
• Ctrip,
• Jobster

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Example Ice.com

• Pattern Match Fast Follower
• Blue Nile 600M Market Cap (NILE)
• Ice.com ?M revenue, growing fast
• Positioning Middle Market
• Small buy jewels online yet
• Targeting, value for mass consumer
• Plan Scale Profitably
• Spend with low ad/sales ratio, MA
• Goal to become GAP of jewelry

Gift
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Summary
Establish opportunity/credibility upfront
Gambit
Tell a tight/organized story
Nutshell
Give what they want low risk/high return
Gift
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Follow-Up Other Resources

• Jerry Weisman (author of Presenting to Win and
  many of these ideas)
• www.powerltd.com/
• Cliff Atkinson
• www.beyondbullets.com/
• Brad Feld
• www.feld.com/blog/archives/2004/06/the_torturous_
  w.html
• Allen Morgan www.allensblog.typepad.com/allens_blo
  g/2004/11/ten_commandment.html
• Seth Levine www.sethlevine.typepad.com/vc_adventur
  e/2005/01/putting_togethe.html
• Marc Hedlund
• www.conferences.oreillynet.com/cs/et2005/view/e_s
  ess/5845
• Marketing Playbook
• www.marketingplaybook.com/2005/08/25/vc_pitch_tip
  s_reprinted_with_permission_from_myself_.html

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Follow-Up Other Tips

• This session what
• Next session how
• Best Foot Forward
• Rule of Three
• Dont Use Handouts (only after youve finished)
• Insert Page Numbers!!!

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Discussion