Alliance of Angels:
Presentation Guidelines
Last Updated Monday, August 1, 2005
Aaron Coe, Program Manager
Edward Hansen, Program Manager
Alliance of Angels
http://www.allianceofangels.com/startups
Copyright 2005, Alliance of Angels
Introduction
Alliance of Angels:
Providing the Venue for Angel Investors and Startup Companies to Meet
MIT Enterprise Forum ~ April 7, 2005
Aaron Coe, Program Manager
Alliance of Angels
2004-05 Preston Gates & Ellis Fellow
[email protected]
http://www.allianceofangels.com
Copyright 2005, Alliance of Angels
The Problem
The Problem
• Define the problem and WHO has
this pain
– Graphs
– Pictures
– Tell of a Problem Scenario that sets up a
Usage case for your product or service
Copyright 2005, Alliance of Angels
The Solution
The Solution
Overview of primary product or
service that will solve the problem
• Use multiple slides if necessary
• Do not exceed time limits
• Product Photos, Screen shots
• Logical Flow and Architecture diagrams
• Short list of Feature/Benefits
Be clear about the status of
product development
Copyright 2005, Alliance of Angels
Traction Slide
Traction
• Founded in 2003
• 3 full-time employees, 3 part-time
• Released v.1 fall of 2004
• 15 Beta Users, 10 Paying customers
• Signed up 3 channel partners
• Received ABC certification
• 1 provisional Patent filed
• Licensed X patented technology from Y company
Copyright 2005, Alliance of Angels
Market Size
Market Size
• Build the number from the ground up
• Total Addressable Market
• Use drivers relevant to your product
• Show the different segments
– Pie Graph works well
– Explain how you prioritize the segments
• “This is our initial market” (speak to why)
• If you must use 3rd party figures, cite the
source
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Customers
Customers
• Current Customers
– 85 startup companies like the following
– All companies paid full price of $0.00 per visit
• Potential Customers
• Early stage technology companies raising between $250K to $3M
– Your Company, Inc.
– His Company, Inc.
– Her Company, Inc.
Copyright 2005, Alliance of Angels
Revenue Model
•
•
•
•
Revenue Model
Licensed Software
Hosted Solution, Monthly Fee + 2% of all transactions
booked through our system
We Sell Widgets; Direct and Through a Channel
Time and Materials
Customer $2500
Average Customer is worth
$60,000 in annual Revenue
Avg Customer Buys
24 Widgets per year
Gross Profit
$1100
20%
Retailer $2000
10%
Distributor
$1750
Gross Margin
>60%
Cost $650
Copyright 2005, Alliance of Angels
Sales Cycle
Sales Cycle
How do you sell your product? Direct and/or Channel Sales
If Direct,
• How many sales people?
• How long does it take to close a deal?
• Who is the key decision maker? (Especially if that differs from
the key user)
If Channel,
• Who are the partners?
• How many are required?
• How are the territories divided? (If relevant)
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Competition
Competition
• Indirect Competition
– Summarize the current alternatives (other
technologies or types of products)
• Direct Competitors
(logos are easier to read than text)
– List competing company 1 and an analysis
– List competing company 2 and an analysis
– List competing company 3 and an analysis
• Use a matrix if possible
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Partners
Partners
• Pay Sponsorship for
MBA fellows
• Contribute to deal flow
– Commitments renewed
on an annual basis
• In-kind sponsor
• Public Relations Strategy
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Management Team
• Name, Position
– Prior Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Position
– Prior Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Position
– Prior Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Position
– Actively recruiting
Copyright 2005, Alliance of Angels
Management
Advisory Board
• Name, Area of Expertise
– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Area of Expertise
– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Area of Expertise
– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
• Name, Area of Expertise
– Company, Position (VP or above), Years
– Prior Company, Position (VP or above), Years
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Advisory Board
Financial Projections
Financials
Assumptions:
Five Year Projections (Millions, US)
$150
$130
$110
–
–
–
–
In 2006, $__ per sale
In 2006, __customers
2006 market share: __ %
In 2006, __% from new sales;
__% from recurring
– U.S. market only
– Does not include future product
extensions
Revenue
Expenses
Income
$90
$70
$50
$30
$10
-$10
2002 2003 2004 2005 2006 2007
Global Assumptions
• Legislation passes in year 2
•
Year 3 we get certification to market in the U.S.
This is an example for demonstration purposes only
Copyright 2005, Alliance of Angels
Funding Requirements
The Offer
Prior Funding:
- $ from founders, $ from outside investors, $ grants
Current Round:
- Seeking $1 million ($500,000 raised)
- Pre-money valuation: $2 million (range will be fine)
Use of Funds:
- Finish v 2.0 Prototype
- Launch in xxx market
- File patents
Future rounds:
- Series B of $ million expected in early 2004
Exit Strategy:
- Acquisition (perhaps Microsoft, IBM or Nike)
Copyright 2005, Alliance of Angels