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Abstract
This article covers the essentials of constructing and delivering a “pitch” of a business opportunity to potential
investors or corporate partners. We advocate constructing an effective pitch first and then using that as a guide
to prepare your business plan. The content of the pitch itself as described herein in effect comprises the elements
to be incorporated into a business plan as a more comprehensive documentation of the business. Therefore,
focusing efforts on creating and delivering the components of a compelling pitch will provide the essence of what
you will then need to put into prose as a business plan. So, our mantra is “pitch then plan,” i. e. don’t waste your
time writing prose until you know what you need to write. Furthermore plans change many times between the
first writing and successful implementation.
Journal of Commercial Biotechnology (2012) 18, 38–42. doi: 10.5912/jcb.509
Keywords: pitch; business planl investor; partner
INTRODUCTION special session to this topic (see article by Boni and We-
ingart in this special edition).
P
itches do not come easily, so our recommenda- In the Biotechnology Entrepreneurship Boot Camp
tion is to work up a pitch and practice it multiple we assemble two sessions to demonstrate how to give a
times with multiple audiences. This is an iterative pitch. The first is targeted at venture/angel investors and
process and as you proceed to try out your pitch with the second to corporate partners. We assemble panels to
diverse audiences (customers, partners, investors, team which CEOs give their pitch, and then get “grilled” in
members), you will receive questions and constructive real time by real investors and corporate partners. Seeing
feedback that will in effect help you to refine your under- this process in action provides a great learning experi-
standing of the market need, how to articulate the value ence for both the CEO and the participants in the boot
that you create, your go to market strategy, etc. Plans camp. This article will illustrate that the pitches basically
don’t sell opportunities; people do via their pitch. Inves- contain the same elements, but that the elements of fo-
tors typically invest in management teams — especially cus for a venture pitch and a corporate pitch may dif-
those with good opportunities and an ability to articu- fer somewhat. Distinctions will be made in the article.
late that opportunity. It is well known by most experi- Unfortunately we cannot simulate the real time learning
enced investors that a business strategy changes many experience in this article, but the information contained
times from inception to successful execution. Therefore, in this article is provided to the audience, to the present-
at the “end of the day” most will invest in a team that ing CEOs, and to the VC/partner panels prior to the Boot
can survive, grow, and thrive in the face of incredible Camp itself.
uncertainty and risk. The team is so important that our The setting for the pitch is that you have been able
Biotechnology Entrepreneurship Boot Camp dedicates a to get an introduction to an angel investor, venture capi-
talist, or potential corporate partner. This personal in-
troduction or referral is generally required, especially
for a venture or angel investors since they are deluged
Correspondence: Arthur A. Boni, Ph. D., John R. with plans and requests for audiences. They are not going
Thorne Professor of Entrepreneurship, Tepper School of to be able to spend the time reading through a business
Business, Carnegie Mellon University, Pittsburgh, PA plan (or perhaps even an executive summary) to decide
15213 US. Email: boni@andrew.cmu.edu whether or not to meet with you. It is also helpful with
Apr il 2012 I Vo lu m e 18 I N u m b er 2 39
The Anatomy of a Pitch Title
Current Slide
Problem
At the start of your pitch, the first objective will be to get Status
the attention of the audience and have them in effect an-
ticipating to hear more about the opportunity and your Finances Solution
team. This is the objective of the Elevator Pitch. This first
part of the Elevator Pitch should be short and comprise
the first “15 seconds or so.” This first part is to engage Business
the audience and make sure that you highlight what you Competition
Model
do, explain why it’s important, and say something that
validates the authenticity of the opportunity. Hopefully Market Team
the audience will now be engaged and want to hear more.
Technology
You then proceed to the next part of the elevator pitch,
which should take about 60 seconds more. It should cov- Figure 2: The ten necessary slides
er the following points:
• The opportunity is big and unsolved and will need to know who you are and how to
the need is compelling contact you. This slide is just used as a visual
• Your solution is unique (can be while you give your elevator pitch. Some people
differentiated) and has a competitive may include a picture or some other object on
advantage this slide that illustrates something about them
• Identify the customer and why they or their opportunity.
care — talk about the value that you create 2. The Problem. This slide should be used to
(or the pain that you take away) illustrate a clear and compelling market need.
• How you are going to make money (and What is the “pain” or compelling need in the
return it to the investor) marketplace? How is that need addressed
• Why this CEO and team? today, what gaps exist, and who are the
customers? The goal here is to get everyone
In the elevator pitch and in the pitch itself (which in the room to buy into the problem or need,
follows) you will need to be enthusiastic, passionate, and that it really exists, and that it is significant.
authentic. If you don’t have an answer to a question don’t Often time some presenters use a “persona” to
fake it. Just say that you’ll get back with them, and then illustrate the problem in the form of a fictitious
do. or real person who can be used to make the
Your pitch should be organized into ten sections problem personal in the context of people who
as shown below (remember Kawasaki’s 10 slides). These we really know. Make it real!
topics should look familiar to you since they comprise 3. The Solution. Simply said this slide explains
the main elements of any business plan as outlined in how your proposed solution solves the
any book that includes a discussion on construction of problem, how it works, why is it different, and
business plans; c. f. Timmons and Spinelli 2, Kaplan and what are the demonstrated outcomes of the
Warren3, Dorf and Byers4 for example. The slides (as do concept as it currently stands. Why is this
you) need to communicate enough information to ex- a better solution than the alternative? For a
plain your material and also enlist intelligent questions partner, get them thinking about synergies
from the audience, while encouraging them to the next with what they do and what they need. For
step in evaluating your opportunity in subsequent meet- an investor, get them thinking of how this
ings and in the due diligence process. Keep in mind that solution will result in fast customer acquisition
you will not walk out of this meeting with a deal in hand. and market penetration.
Moving forward to a term sheet (and deal) is an iterative 4. The Business Model. The business model can
process and will take a period of time. VCs and corporate be defined as how you arrange the elements
partners each have their own process that takes months, of your business to create, deliver and capture
not days. value in the market. There are four elements:
customers, your offering (product/service),
1. Title Slide. This slide lists the name of the the infrastructure, and the financial viability.
organization, address, contact person and any See Osterwalder5 for a very compelling and
other pertinent information that your audience visual description of how business models are
Apr il 2012 I Vo lu m e 18 I N u m b er 2 41
The Context
1. Creates or adds significant value to a customer (SET
or user Factors) Market Drivers, Competition
2. Solves a significant problem in a large and
growing market
The Team, Technology,
3. The opportunity can be differentiated and Infrastructure Finances,
a sustained competitive advantage can be (Resources) Current Status
developed
The Foundation Problem, Solution,
4. The market has the potential for good margins
(Opportunity) Business Model
and moneymaking characteristics
5. There is a good fit with the founders and
Figure 3: Building blocks for a winning business
management team at the time with a balance
of risk and reward — and alignment of interest
with all constituents including investors to partners, and equity ownership is important for entre-
preneurs. A good deal is further differentiated by many
The plan itself may be visualized in three layers: factors. These include with respect to the founders and
management team, but are not limited to: ability to com-
• The Foundation or Pillars of the Business municate, passion, conviction, perseverance, willingness
(Opportunity) to be coached, and ability to work in a collaborative team
·· Opportunity: The Problem (need), The environment that incorporates diverse skills sets and
Solution (your offering), The Business perspectives.
Model