When pitching potential investors we recommend to discuss the following points in a concise manner:
What is your core business? Do you have a clear business model?
Very simply explain what is the problem or need that your product/solution solves or addresses. How do you create real value for your target customers?
Focus on the essence of what you are offering. Also, describe how you are planning to generate revenues from your product / service. At Kaedan, we are looking for highly engaging products/services that solve significant needs and create barriers to entry as time goes by.
What is your long term sustainable competitive advantage?
State exactly what is your unique selling proposition vs. existing and future competition – do you have a unique technology that is only your company’s know-how? Is it patent protected?
Is it a new and smarter business model you discovered? Do you have a winning team that can execute better and faster than the rest of the herd? Is it a consumer insight that no one has yet addressed? Are you relying on 1st mover advantage that will create a defending network effect?
What is your total addressable market?
It is of most importance that you accurately define your target customers and provide a relevant market size to serve these customers.
Please avoid general mass market statistics. For instance, if you are aiming at the online advertising business, be specific about the sub segment that you are aiming with your solution (search, classified, display, video etc). At Kaedan we love seeing entrepreneurs who know their domain inside-out. We like to see founders who know the latest trends of the market, know the players in their ecosystem and provide us with relevant benchmarks.
What is your go-to-market strategy?
Explain how you are planning to reach your customers efficiently, with the ultimate goal of creating a positive ROI in mind.
What is your cost of acquisition of a customer vs. the expected lifetime value of that customer. Elaborate on how you build a high adoption level to your products and provide high utility and simple solutions to better address your customer needs will be a key driver to success.
Who are your competitors and why are you better?
Elaborate on the direct competitors and how does your solution differentiate from their offerings.
Do not just provide comparative table of features but rather provide a deeper value oriented assessment of your differentiation with your target customers in mind.
What are your proposed investment terms and use of funds?
Try to evaluate how much capital you think will be required in order to get to positive cash flow, and what is the minimum amount that is essential at least for the first 12-18 months of operations following the closing of a financing deal.
We recommend to raise a round that is sufficient to support at least 15-18 months of operations. A clear use of funds plan is also required.