Games on the GO

F AB 14

H OW -T O G UIDE

S

TEP

-

BY

-S

TEP

G

UIDE TO

P

ITCHING

Y

OUR

B

USINESS TO

A

NGEL AND

V

ENTURE

C

APITAL

I

NVESTORS

.

Copyright 2012 McAdory Management Strategies

Successful Methodology

This slide-by-slide guide to creating and delivering impactful pitches is based on a proven methodology that results in funding from angel investors (wealthy individuals) and venture capitalists (professional investors of a venture fund).

It is designed to help you organize your investor pitch into a 20-minute presentation —which is about all the time you’ll get to pitch your idea in the venture industry. Your 10 minute, 3 minute and 30 second elevator pitch are derived from this model.

Based on 1,000+ successful fund raising pitches made to The Angel Society (NY

Angels), Ultra Lights, ASTIA, IBM Smart Camps, General Assembly NYC,

Cooley Capital Call, MIT and Wharton Entrepreneurs' forums, iBreakfasts,

Venture Downtown conferences and a variety of other cities that include Boston,

San Francisco, Washington DC, Los Angeles, Istanbul, Tel Aviv and other entrepreneur hot spots around the world.

More than $1 billion has been raised following this methodology. Sample companies that used this methodology include Mediamorph, Corcoran.com, LivePerson,

Vindigo, Fandango, Register.com, the Knot, 1clickcharge, Intelysis, Nerve.com, kozmo.com, designeroutlet.com, feedroom.com, iclips, unplugged games, audium, cheetahmail and others.


Introduction and About This Deck

How many of you never made it past your 4 th slide before someone else took over your presentation?

90% of Entrepreneurs, many with excellent ideas, never get to slide 5!

Every time you speak about your venture or present a PowerPoint deck, your audience is auditioning you for the CEO role!

When you lose control of your own story, the audience starts to wonder whether you’ll do the same with your own company

This deck, which covers audio, visual, delivery and feedback, will help you deliver a successfully scripted investor pitch to follow every time


4 Types of Pitches & Target Audience

1.

Investor Pitch (Bet on “business” and me as CEO)

• Angel, venture, investor target

• CEO Audition; driving the point that you and your team should deliver a pitch that talks about how you are going to build a business that will scale, based on a market opportunity you’ve identified and will deliver

2.

Solution Pitch (What “problem” have you solved?)

• Mixed audience of techies and investors

• Tell me what problem you are solving: I need you to explain your “beautiful baby”

• We smarter folks will decide if you have an interesting business

3.

Technology Pitch (This is “really cool coding”)

• Techies only , Tech Meet Up events

• Don’t ask me how we make money.

4.

Sales Pitch (what you say to customers)


Style Tips

1. Key words, Numbers, Not Sentences

• Keep thought to one line. Multiple lines signal a new thought.

• If you must wrap to a second line, indent it so the beginning of each line, left adjusted, starts a new concept

• Action word is the first word or key number on each line

• Remove connecting words & abbreviate

• Spell check-typos. Misspelled complete words, lack attention to detail

2. Clean Type Face

• Use a non-curlicue font such as Arial

• Use 18 point or higher--readers must be able to be read slides from the back of big conference room

3.

Lose the screen shots, web shots, all “babies” look similar

4. Easy on the graphics, pie charts and graphs. Numbers easier to read

5. 5 Points per page Maximum

6. Line Up Decimal Points

• Line up decimal points and add up numbers and show totals

7. Use Your Canvas Space Wisely


Presentation Tips

1. Check Your Equipment

2. Practice, Practice, Practice will help control timing

3. Follow Your Script

4. This is a Business Pitch, not your Sales Pitch

5. Understand your audience


The Show : Presentations

1. Projection and/or Large Screen TV:

• Always use a screen when you can

• Dark background. White letters: the light source shines through the words you want folks to read

• Why? Ambient light on a white background distracts from the readability of the screen (think about reading a magazine on the beach without sunglasses!)

2. Handouts:

• Give them out at the beginning of meeting

• Print in Grayscale so you have white background in hard copy

• Allow your audience to follow along as you present concepts

• Read ahead

3. Scripted Concepts:

• Use your lap top or iPad as your teleprompter

• Cue talking points by using your lap top screen

• Don’t talk to big screen. Pointing means you are showing audience how to read screen.


The Fab 14

Fabulous 14 Slides for Presentations

• Goal is to pitch a high-level, summarized view of the company

• Not a Business Plan on screen

• Not a product demo for tech audience

• Investor targeted pitch template for Angel thru VC rounds

• Dark background with White letters is an easier read on screen

• Slides should contain concise ideas, key words, not full sentences

• No screen shots or Web pages displayed

• No more than 5 bullet points per page

• Arial Type Face, 18 to 24 point font (simple font)

• Only one speaker, Q&A include others

• Minimize use of non-information symbols, check marks, bullet points


FAB14 Slides

Suggested slides: (may require some customization)

7.

8.

5.

6.

1.

2.

3.

4.

Company Title Page: with $Dollar Amount of Round and your name

Agenda: presentation roadmap, what will be said (Speech 101)

Financial Overview: top line revenues and expenses, 3 years out

Product: what is the business in simple terms

Market: what is the environment, and how big are the segments

Go to Mkt Strategy (Customers): how many, process, attracted, retained

Revenue Streams: who pays, how much & from where, annualized

Competition: who and how threatening, what are differentiation factors

9.

Barriers to Competitive Entry: how will other competitors be kept at bay

10.

Potential for Business/Use of Proceeds: where will money take you

11.

Goals and Performance Objectives/Milestones: what are the success metrics

12.

Management Team/Strategic Relationships: talent & experience

13.

Valuation: how do you come to the number & current investors

14.

Review: summary of what you said, same order, narrowed to 12 pts.


Let’s get started

Building the Deck Template

Implementing the FAB14 follows this page:

This business pitch is based on a real case that did get funding. The numbers, dates and names have been plugged in and changed for illustration purposes. You need to plug in your own numbers and key words to personalize the deck.

There are additional notes for each page in the lower screen notes section.


Rule #1: Speech 101

• Tell Them What You’re Going to Tell Them

• Tell Them

• Tell Them What You Told Them

Use the Agenda slide

• Listener/viewer needs to know where you’re going with their time

• 90% mid-presentation questions avoided by following Rule #1


Games On the Go

$

2.5m Interim Round

$ 20.0m Institutional Round

John Smith

CEO and Founder

Games on the GO


Overview/Roadmap of presentation

Financial Overview

Products

Markets

Customer Strategy & Distribution

Business Model

Competition

Barriers to Entry

Use of Proceeds

Management Team

Milestones

Valuation & Investors

Games on the GO


Financial Overview ($m)

Revenue

YE11 YE12 YE13 YE14

6.8

47.0

127.4

263.1

Expenses 17.6

45.8

101.7

168.7

Net Income -10.8

1.2

25.7

94.4

Games on the GO


Products

Mobile Games Service

• Suite of easy, device friendly games

• Designed to the strengths of the medium

 Portable: Play anywhere

 Ubiquitous: Play anytime

 Networked: Multiplayer games

 Voice: Build communities

MobileStage Platform

• Carrier-grade stable & scalable architecture

• Customer & community support

• Client device & platform agnostic

• Low-cost billing & provisioning carrier support

Wireless Market

Near Term: Smart Phones

• x.0b people using devices

2010 (IDC)

• $x.0b world wireless games market

2009 (Datamonitor )

• xx.1m phones in USA

• xxx.0m phones in Europe

2010 (Forrester)

2009 (Forrester)

• xxx.0m in Europe & North America

• xx.0m North American phones

2009 (Strategy Analytics)

2010

Long Term: Smart Pads and tablet computers Platforms

• Handheld game console w/built-in phone

• iPad

• Third generation (3G), 4G, LTE mobile networks

• Bluetooth-enabled

Games on the GO


Games Market

Fastest growing entertainment market segment

$8.0b US game software market

$1.6b Wireless games US & Europe 2009 (Datamonitor)

33% Internet users play games online

90% Internet gameplay is multiplayer

Games are “stickiest” sites on the Internet

 120 min/month (Game Names, specific)

 2000 min/month (Game Names, Nielsen)

Games on the GO


Games Market (2)

Online player demographics (IDSA)

• 53% women & outnumber men

• 40% household income >$60k

• 60% between the ages of 25-44

• 21% play at work

Wireless game targets

• Online gamers

• Mobile Warriors (business and self - employed)

• GameBoy kids

• Generation Y: cellphone generation

 Market taste-makers

 What GenX did for MTV in 1987

Games on the GO


Go to Mkt Strategy (Customers)

Contracts

• Verizon, first product delivered Nov 15, 2000

 Top “Games” menu placement

 Additional games rolling out in Dec, Jan, and Feb

 Three revenue streams

• Sprint, business terms agreed

 Delivering 3 applications by Feb

 Multiple revenue streams

•

Development MOUs

 Motorola

• Negotiations Ongoing

 Several major carriers

Games on the GO


Revenue Streams ($M)

Games on the GO


Competition*

US

• iEntertainment Network (PC games focus)

• Jamdat

• EA Games going mobile

• Zynga and other social gamers

• Pogo.com (Nokia investment)

Europe

• Developers: Digital Bridges, In-Fusio, Riot-e

- Most have little or no multiplayer game experience

- Many lack online operations experience

+ Access to wireless savvy culture and developers

• Nokia

- No game development experience

- No community management experience

+ Access to operators

+ Control of hardware

Games on the GO



• Platform integration experience

(COLS, early Internet)

 Patentable Platform Applications

 Favored screen placement

• Multiplayer game experience (10 years online)

• Proven online content development and delivery

 Built stable and scalable back-end systems

 Supported large player communities

 Carrier integration, 100k+ simultaneous players

• Stable platform

• Customer retention, operators & portals

Games on the GO


Use of Proceeds ($Ms)

Interim Round

Payroll

Overhead

Capital equipment, hardware & software

Legal & other professional fees

Travel & Entertainment

Accounts Payable (primarily NOC)

Marketing & public relations

Total

$1.25

.42

.36

.18

.06

.22

.01

$2.50

Games on the GO


Milestones Accomplished

Launch Games on the Go

Closed $1.0 m financing

Jan 2011

Feb 2010

Signed Verizon Distribution Contract Sept 2011

Delivered 1st game to Verizon Nov 2011

Sprint business terms agreed

Interim financing round

Nov 2011

Dec 2011

Games on the GO


Milestones Ahead

Hire 4 game architects/developers

Sign AT&T distribution agreement

Deliver 10 additional games to all dist

Move data centers to cloud

Establish international sales office

Sign 5 international carriers

Q3

Q4

Deliver 15 games to international carriers Q4

Q1

Q1

Q2

Q3


Management Team

CEO and President, John Smith:

• 50+ games w/Time Warner, News Corp, Sony, AOL

• Co-designed 1st 100,000 player online game, AngryMan

CFO Adam Low:

• 15 years of game sales, $1M+ each yr., last 5 years

• Comptroller Activision, Financial Analyst Electronic Arts

CMO Jennifer Hobarth:

• Comptroller, Bank of New England; Fin. Analyst, iVillage

• MBA, NYU Stern, B.A. Economics, Wellesley College

Chief Designer, David Hale:

• Designed and published 27 electronic & paper games

• Clients include Viacom, France Telecom, Mattel, Sarnoff

Games on the GO


Valuation & Investors

Seed Round:

A Round:

$ 1.0m @ $3.0m pre

$ 2.5m @ $5.0m pre (pending)

B Round: $20.0m @ $8.0m pre (pending)

Current Investors

• East River Partners

• David Schwartz

• Jonathan Costello

• Big Apple Ventures

• Tim and Tom Equities

• Strategic Advisory Associates

• Telecom Ventures

Games on the GO


Review

Financial Overview

Products

Markets

Customer Strategy

Revenue Streams

Competition


Use of Proceeds

Management Team

Milestones

Investment

$263.1m revs in Y4, $94.0m net income

Scalable, stable platform, multiplayer games

½ b web phones ’02, 200 mins/month, MTV

Verizon, Sprint, Motorola, major carriers

Platform, airtime, sponsors, subscriptions

US, pogo.com; digital bridges & other EU

Team, platform patents, distrib., multiplayer

Development, distribution, operations

Game, platform & seasoned management

Signed contracts, first games delivered

$2.5m interim, knowledgeable investors

Games on the GO


Next Steps

Due diligence session

December 6, 2011

12 - 2pm

222 Broadway @ 23 rd, 4 th Floor

Contact Info:

John Smith o) 212.123.4567

c) 646.123.4567

jsmith@gamesonthego.com

Questions / Feedback?

Games on the GO


About McAdory Lipscomb, Jr.

M C A DORY L IPSCOMB J R .

Mac is a startup strategist that coaches early stage CEO’s on how to define their Go to Market strategies and deliver the fundraising pitch to angels, VCs and the market.

He is the official pitch coach for NY Angels, Ultra Lights, ASTIA, as well as an international mentor for IBM’s Smart Camp and the

Entrepreneur Roundtable Accelerator. Mac created and teaches the

Master Pitch Workshop and is a member of the faculty of General

Assembly in New York City.

His career ranges from CEO (The Political Channel), to venture capitalist (RRE Ventures), to angel investor and developer of the

Angel Society (NY Angels) to advising corporate CEOs including the

IPO road show for Live Person.

Mac’s global leadership roles include partner at Accenture, EVP of Showtime Networks, WorldSpace/xM satellite radio to presidential campaign roles.

A Senior Fellow at the Annenberg Center for the Digital Future at

USC, he has an MBA from Colorado-Boulder, an MA in Speech from

Auburn University, and a BA in Government and Politics from

Maryland, College Park, where he currently serves on the Board of

Visitors for the College of Behavioral and Social Sciences.


Games on the GO

TEP

BY

TEP

UIDE TO

ITCHING

OUR

USINESS TO

NGEL AND

ENTURE

APITAL

NVESTORS

Games On the Go

2.5m Interim Round

$ 20.0m Institutional Round

John Smith

CEO and Founder

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