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When pitching your startup, instead of a linear flow, think of your startup’s story like a pyramid with many layers.
Each layer of the pyramid is the entire story of the company at different levels of resolution.
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Each layer of the pyramid is the entire story of the company at different levels of resolution.
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At the top, you see the entire shape of the startup in miniature form. The tip is a word or tagline that tells the whole story. Followed by an elevator pitch etc.
In the middle tier, countless layers go into deeper detail.
And the base is made of millions of data points.
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In the middle tier, countless layers go into deeper detail.
And the base is made of millions of data points.
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This means you should be able to tell the entire story of your company in the first 30 seconds & also 5 minutes.
Think of 5 min as an extended version of your elevator pitch with visual accompaniment.
It's what want the VC to repeat to their partners at the Monday meeting
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Think of 5 min as an extended version of your elevator pitch with visual accompaniment.
It's what want the VC to repeat to their partners at the Monday meeting
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There are ~20 slides that form the core of most startup pitches.
But if the first *three* or so don’t capture a VC’s (or customer’s) interest, the sales job is going to be tough.
How to use the pyramid to create a “Minimum Viable Pitch”:
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But if the first *three* or so don’t capture a VC’s (or customer’s) interest, the sales job is going to be tough.
How to use the pyramid to create a “Minimum Viable Pitch”:
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Stop thinking in slides.
Don’t assume you’ll be able to sustain VC focus through a linear progression of a dozen facets of your business:
Problem
Solution
Product
Why Now?
TAM
Competition
Business Model
Team
Financials
Roadmap
“The Ask”
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Don’t assume you’ll be able to sustain VC focus through a linear progression of a dozen facets of your business:
Problem Solution Product Why Now? TAM Competition Business Model Team Financials Roadmap “The Ask”/5
VCs don’t want to see a list of slides.
Slides are just the most efficient way to tell the stories that VCs want to hear.
Too much focus is paid to individual slides in the pitch deck, at the expense of the overall startup narrative — especially the hook at the start.
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Slides are just the most efficient way to tell the stories that VCs want to hear.
Too much focus is paid to individual slides in the pitch deck, at the expense of the overall startup narrative — especially the hook at the start.
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If those first five minutes go well, there will be plenty of time to go deep on:
Product
CAC/LTV
Defensibility
Expansion opportunities
Full team/advisors
All of these things just tell a deeper version of the story, but support the top of the pyramid.
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Product CAC/LTV Defensibility Expansion opportunities Full team/advisorsAll of these things just tell a deeper version of the story, but support the top of the pyramid.
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If the first pitch goes well, there will be requests for diligence to ensure the pyramid sits on a firm base. Expect an investor to want to see:
Technical diligence
Financials
Cohort analysis
References
All of that comes later. Don’t get bogged down in details
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Technical diligence Financials Cohort analysis ReferencesAll of that comes later. Don’t get bogged down in details
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At every stage, the new slides and data should be building off a coherent vision delivered from the previous layers of your pyramid - esp. the first 5 minutes
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For example, you can tell the Uber story in layers:
Tip of the pyramid - Uber = Mobility
Next layer - Uber = A marketplace that makes mobility ubiquitous, like any utility, by connecting drivers and passengers in real time
Eventually, you’ll make S-1 disclosures
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Tip of the pyramid - Uber = Mobility
Next layer - Uber = A marketplace that makes mobility ubiquitous, like any utility, by connecting drivers and passengers in real time
Eventually, you’ll make S-1 disclosures
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Comprehension is key: The VC likely doesn't know your market deeply - you want them to buy in quickly before they check out. If the investor doesn’t understand what your actual product offering is, don’t make them absorb 10 minutes of market research to find out!/11
Storytelling is hard: VC pitches aren’t most founders’ most polished skill — that’s a good thing! It’s easier to tell a short story than an epic tale. Hone a quick pitch, develop plenty of supportive slides, and get back to building your business. /12
Interest is fickle: Every VC has different interests and they’re hard to predict. But everyone likes compelling simple stories./13
I can’t think of a single instance where an expeditious explanation of the startup’s value proposition at the top of a meeting diminished my interest.
I can think of many times where founders have lost investors because they focus on picayune details too early.
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I can think of many times where founders have lost investors because they focus on picayune details too early.
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Sequoia has explained this idea in algorithmic form — In the context of a 60 minute VC pitch, the first five minutes earns you the next fifteen which earns you the final 40.
https://www.sequoiacap.com/article/how-to-present-to-investors/
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https://www.sequoiacap.com/article/how-to-present-to-investors/
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Many think pitching a VC is like arguing a court case. You want to use evidence, testimony, and logic to build a case.
In reality, you’re better served treating VCs like a magazine reader. Hook them with a strong narrative that lets them know why they should stay engaged.
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In reality, you’re better served treating VCs like a magazine reader. Hook them with a strong narrative that lets them know why they should stay engaged.
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Keep in mind, anyone you’re pitching has spent less time thinking about your business than you. The old business advice, “Tell them what you’re going to tell them, tell them, and tell them what you told them,” is applicable in this scenario.
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Don’t hold back important info to make an impact. E.g. mentioning that you have a $10M run rate at the start of a presentation is more impactful than saving it for a big reveal at the end. You may have lost your audience by then.
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Practice telling your story at different layers of resolution -- You can probably even fit a compelling summary of your startup story in the length of a tweet!
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Brevity is the soul of wit and the cornerstone of funding. Explain at the right level of the pyramid for the right moment in time.
Your startup’s story should both be able to fit in a sentence and also an S-1.
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Your startup’s story should both be able to fit in a sentence and also an S-1.
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