NYU ITP !2014 PITCHFEST

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4th Annual!!

Workshop 1 !May 28 2014!

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Jen van der Meer!jd1159 at nyu dot edu

The Purpose of Pitchfest• Building the NYC Tech Ecosystem: NYC’s angels and VCs love what is

possible at ITP, and come to support students who want to start companies based on what they learned.

• Encouraging grads to launch: more and more ITP grads want to start a business post-graduation, and need help getting focus and framing their story to potential backers and supporters.

• Giving grads a framework to think big first: pitching to VCs and Angels as an exercise in telling your largest possible vision.

• What’s different this year: post graduation pitchfest workshops - for those students who are serious about starting a business.

How Pitchfest Works• Curating 8-10 teams to present at the Pitchfest on June 18th

• Criteria: a non algo calculation - readiness to pitch, viability of business model hypothesis, graduation year, team already assembled

• Workshops: vision, storytelling, business modeling to prep you for pitchfest, but more importantly for your business

• All teams welcome to participate in the 3 prep workshops, whether or not you have been selected for the final pitchfest

Pitchfest Workshops

May 28 2014 !

Pitchfest 1 minute pitches Overview of pitchfest Primer on Funding an ITP company

June 4 2014 !

Business Purpose Workshop Origin story

Pitch ingredients Breakouts w/ Mentors

June 11 2014 !

Business Model Exercise Business Model Canvas

Customer Discovery Breakouts w/ Mentors

June 18 2014 !

Pitchfest !!!

May 29 2014 !

Team Selection

ITP Coaches

Tom Igoe NYU ITP

Nancy Hechinger NYU ITP

Jen van der Meer NYU ITP Adjunct

Pitchfest Mentors

Julie Berkun Fajgenbaum Stern, Yolko

Michael Levitz R/GA

Ambika Nigam IDEO

Josh Knowles Frescher-Southern, Ltd.

Ajay Revels Polite Machines

John Bachir Medstro

Today’s Agenda

• Growth capital 101

• Alternatives forms of launching

• Lightning round pitches and QA from Mentors, Coaches

Common Questions for ITP Entrepreneurial Grads

• Am I a for-profit or non-profit?

• Am I scalable or is scalability going to kill my dreams?

• Am I a consultancy or a product company?

• How do I start a business but keep my vision intact?

• How many months until I give up and just get a job?

For Profit, Non Profit, or Something Else?

SBIR Grant

Growth Capital

Friends+Family

Angel

Seed

Series B, C, D…

IPO

Public Company

For Profit

BootstrappedSelf Funded

Acquisition

Corp VC

Acquihire

Donations

Revenue Streams

Membership

Foundation Grants

Corporate Giving

Government Grants

Not for Profit

Idea

Concept

Prototype

Team

Hypothesis

Equity CrowdFunding

Donation CrowdFunding CrowdLending

Project CrowdFunding

CrowdFunding

Our Focus Today: For Profit

Growth Oriented Startups

What is a Startup?• “A startup is a human institution designed to deliver a new product or service under

conditions of extreme uncertainty.” – Eric Ries

• “A startup is a company designed to grow fast.” –Paul Graham. Y Combinator.

• For a company to grow big, it has to make something a lot of people want. To reach and serve all of those people.

• “A startup is a temporary organization designed formed to search for a scalable repeatable business model.” – Steve Blank.

• *Most startups change their business model multiple times.

• A scalable startup is a special class of startup – world class team, large vision, large target market, passionate belief and a reality distortion field.

Types of Company FormationLLC Scorp Ccorp BCorp

Consulting Business x x

Product Needing

Investmentx

Social Impact!Standards +

Transparency x

This is not a legal recommendation - but do visit Lowenstein and other firms that host office hours at NYU Incubators

Angel Investing 101• Seek out successful angel investors:

• Accredited.

• Angels get more successful when they invest in a volume of deals (10-20x per year)

• Pattern matching against themes

• What angels want:

• A big vision, great team, identifiable market segment, prototype, product, traction

• Funding requirement between $50,000 to $500,000 to finance growth activities, including product development, recruiting key staff, launching sales and marketing activity

• Seeking on average an expected value of 10x return.

http://fundersandfounders.com/how-funding-works-splitting-equity/

Stages of Investment Capital Requirements

http://www.venturegiant.com/news-channel-396-when-should-an-entrepreneur-start-looking-for-investors.aspx

Stages of Investment Risk, Reward

Angels Increase in # but not $ Invested

Venture Capital 101 • Raise money from LPs (Limited Partners)

• Invest against a thesis/themes (know their themes)

• Value add: ease in future financing, validation, advisory

• Not seeking to invest in a small business, or a social enterprise with a small addressable market.

• Seeking 10x + return. Looking for Unicorns.

Tracking Themes of Investment

Where to start• Lean startup, lean launchpad

• Total addressable market

• Customer discovery

• MVP

• Validate your early hypotheses

• Start telling your story

So What Am I?

Lightning Round Pitches• Good Branch: David Lobser, Damon Ciarellii

• GardenAware: Julia Irwin, Uttam Grandhi

• VirtualMenu: Máximo Sica

• MyFrame: Yu-Ting Feng, Peiqi Su

• Jewliebots: Maria Paula Saba, Sara Chipps

• TechnoChic / GLANCE: Natasha Dzurny

• Tiya: Su Hyun Kim

• Mnemonic Making(Table): SAKI HAYASHI

• AQUA-BRIDGE: Youjin Shin, Peter K. Kang

Not here today:

• Good Care Calls: Liz Khoo

• Last Eats: Colin Narver

—————Late Entries——————————

• iCarbon: Tianyu WU

• Pleashare: Jing Zhao

• DanceCode: Justin Lange

• Vidcode: Alexandra Diracles, Melissa Halfon

Next:• 8-10 Teams selected

• Homework for next week: first draft presentation covering:

• Elevator pitch

• Team, advisors

• Market size (TAM, SAM)

• Market problem, current solutions

• Business model canvas