Partisia Hackathon - How to Pitch Workshop PDF

“How to Pitch Perfectly” Workshop By Vinson Leow Head of Growth 1 © 2022 Partisia Blockchain  Agenda 1. Overview of CRT Labs 2. Investor Types & Tiers 3. Why Projects Fail to Raise 4. What’s Needed to Pitch 5. Anatomy of a Deck 6. Project Tiers 7. Thing...

“How to Pitch Perfectly” Workshop By Vinson Leow Head of Growth 1 © 2022 Partisia Blockchain  Agenda 1. Overview of CRT Labs 2. Investor Types & Tiers 3. Why Projects Fail to Raise 4. What’s Needed to Pitch 5. Anatomy of a Deck 6. Project Tiers 7. Things to Consider Before Approaching Investors 8. Questions to ask after Pitch 9. Closing Notes 2 © 2022 Partisia Blockchain  Invested into 150+ projects Lead investor in Partisia Responsible for much of the last $40m raised for Partisia including Jump, Emurgo, Mindworks Capital, Kucoin Labs Looked at 1,000+ decks since 2021 Monthly dealflow calls with many T1 and T2 funds Investors Types & Tiers Web3 Funds - Partner Fund / Family Offices- quicker to deploy - Venture Capital- longer DD time - Ecosystem Fund (L1s, DApps, etc.)- Good signal for investors - Incubator, accelerator and advisory firms - Service Providers Funds: market makers, exchanges, marketing/PR agencies, legal, devs etc.- comes with preferential service terms - Launchpads- comes with a launchpad listing and marketing to their community - Syndicates and pools- Avoid unless there is strategic value Traditional Funds Hybrid- Web3 + Traditional Angel Investors Investor Tier List Why Projects Fail to Raise Most Web 3 projects raise based on 1 of 2 focusses: Technology focused- common for projects from China, India & Russia and Eastern Europe Marketing focused- common in the western world, particularly USA Product, not technology focus: Not the underlying technology but the actual products and features your technology will enable and what the end-consumer will use. Go to Market (GTM), not marketing focus: Demonstrate a clear understanding of your ideal buyer, all the different buyer segments globally, how your competitors are targeting them, their acquisition costs and how you will be targeting them more efficiently. This is how you demonstrate a product to market fit. The single most important factor that impacts your project success is your ability to identity and attract a lead investor. Focus on investor quality not quantity. Your starting focus should be to look for a lead investor, a good lead investor means your entire raise will be closed once you secure them. Good lead investors will allocate most of the remaining allocations to their partner funds. Strong lead investors validate your project and make it very easy to raise more funds. What’s Needed to Pitch Main Deck 1 pager / 4 pager / litepaper Whitepaper Data Room: Financial forecasts, GTM strategy by region including acquisition costs, conversion rates, attrition rates etc. Social media: Twitter, Telegram, Discord You could in the form of a Linktree: https://linktr.ee/partisiampc Anatomy of a Deck Overview The Problem The Solution Products and Features Opportunity / Market Sector Overview Competitor Analysis GTM Strategy Token Utility Technology Stack Team Advisors Roadmap Tokenomics Raise Details Overview Project Overview with Vision & Mission Industry Overview The Problem Costs of xx are high / time consuming There’s no capabilities or lack of tools achieve a result due to xx The Problem Continued Specific statistics Always reference link the sources Put everything else into the data room The Solution Overview of all your products and core features- keep it to 1 page Products and Features Opportunity / Market Sector Overview Overview of market size How you can capture x% Competitor Comparison Include a competitor comparison table Include a XY axis comparison & Venn Diagram GTM Strategy Include B2B and B2C customer segments How each segment will be engaged and monetised Most important part of the deck Token Utility Purpose of using the token If there is a burn or buy back mechanism Often ignored, needs to be well thought out ideally with a tokenomics advisor Technology Stack Breakdown of the technology flow Shows DApps that engage with your product How it fits into the Web3 Ecosystem Team Only add in your leadership team Fine to add more if you have lots of talent or want to show diversity but always list their credentials  Advisors Advisors are an extension of your team and are there to plug in any gaps your team has with the execution of the vision, especially in the GTM strategy area. Domain experts: These people could be ex-executives, current entrepreneurs, sales experts, marketing experts, etc. Usually their value to you diminishes quickly, i.e. you learn a lot from these types of advisors in the first, second, or third meeting, but then you discover they already passed on to you most of their relevant knowledge. Door openers: These types of advisors are people that can introduce you to other people, whether they be clients, investors, employees, partners or other advisors. The real value of these types of advisors are when they can introduce you to people you never knew existed, or when they have real influence on the people they are going to introduce you to. Golden tippers: These people can answer one quick question with a short email or a phone call. They won’t coach you like the domain experts, but they can save you in many critical moments. Examples of these types of advisors could be a CEO of a big company in your space, an academic professor or an experienced negotiator. Keep them informed, it’s good to make them part of your team with a higher allocation. Mentors: These people are people you meet on a regular basis. They can help with strategy, with managing internal conflicts. Like the golden tippers, it’s important to keep them in the loop. These types of advisors are not there to reassure you. They are there to challenge you, to ask you questions and to force you to think. You don’t need to necessarily agree with them. You can argue with them, you can try to convince them. Tokenomics Raise: 15% - 25% Team: 15% Advisors: 2.5% - 5% Ecosystem: 20% Marketing: 3% - 10% Reserve: Remainder ~20% - 25% Raise Details Seed: $10m FDV Private 1: $12m - $20m FDV Private 2: $15m - $30m FDV Token Raise Issue a SAFT: Simple Agreement for Future Tokens Valuation is based off fully diluted valuation (FDV) Equity Raise Issue a SAFE: Simple Agreement for Future Equity Valuation is based off equity valuation valuation Token and Equity Raise Issue a SAFE + Token warrant Usually as a 1:1 ratio. For example if project round’s raise is at $10m FDV, the equity valuation is $10m Most common for high Tier projects Project Tiers Project Tiers Raise Investors Chance of Success Tier 1 $5M+ At least 2 T1 High Tier 2 $3M - $10M At least 3 T2 or 1 T1 Medium Tier 3 $1M - $3M No T1, at least 1 T2 Low Tier 4 Up to $1.5M T3 Negligible Things to Consider Before Approaching Investors Investor Type Investor Tier Due Diligence time: 1 - 90 days to complete due diligence Market macro conditions What’s their average investment ticket size the past 12 months How much impact an investor will have on your project’s raise and potential success What value can you bring the investor’s portfolio projects Focus on higher tier investors first- they will give you constructive feedback and a better understanding of how to improve your pitch. If you can’t reach any T1/T2 investor directly, find an advisor who can help you Good investors will only setup a group chat and call with you if they like your project Questions to ask after Pitch What are your thoughts on the project? Was there anything you didn’t like or would like to see? What’s the next steps from your end? (It’s important to understand the SOI- sphere of influence) How long does it normally take for you to make a decision? How VC’s share dealflow If the deck can’t sell itself, fix it til it does A clear a concise 1 - 2 line elevator pitch Closing Notes Focus on a strong lead investor or set of lead investors Identify your project tier and target investors that are interested in your tier Don’t be afraid to pivot the concept or pitch til it appeals to investors- that’s when you know you’ve hit a product to market fit Projects normally have a referral agreement of 5% (can range in 4% - 10%) commission to incentivise individuals to help fundraise offered to team members and external parties Fundraising can take up to 12 months in bear market conditions- if you can launch the product without a token this is preferential for investors Deck Links BitsCrunch Endaoment Magic Square The End