Updated: May 9, 2020
An early stage investor will invest in a story of a startup. So as a founder, storytelling is a key aspect of your pitch. Here are few storytelling tools that can really elevate to make your pitch memorable and great. Is you problem worth solving?
Human Story: The first barrier your pitch has to cross in investors mind that you are solving a problem that is worth funding. To have a lasting impression of the problem you need to vividly descriptive your problem using human stories or anecdotes. If the problem is personal to you then you will have loads of stories on how you faced this problem and had no solution. Remember, AirBnB was started because one of the founders was not able to afford rent and had extra bed in his house to lease.
Customer who faces the problem and how your(and representative) story of an individual tell an evocative story. If the problem is not personal then find the user who has, what his persona, tell about this person product solves it. Once this is done, quantify the problem. Just one or two big numbers backed by evidence. You don't need the whole calculation but just the number
Use analogies of already successful startup/companies
Another way to launch is a surprising questions
Do you have the ingredients to be successful?
You need to showcase where you standout. This is the trick that you need to learn. Early stage founders seldom have to many things to flaunt about but there are always golden nuggets to showcase. A good way is to look at the norm, Find the norm and find the variance, to highlight the key areas where you stand out. Identify where your deviation from norm is maximum.
Here are few clues:
Performance Outcomes like finance or operations (MoM/YoY Growth/ high margins/ segment growth)
Paying customers, big brands, other investors, partnerships (reputed brands, repeat purchase revenue)
Great product reviews from experts, ( Well known partners, investors,
Sharp or unique business model
A great experienced teams or team with great synergy , (complimentary skills, prior achievements, domain exposure)
Approach and marketing plans that are unique and different ( Entry barriers for new comers, high cost of switching, network effect)
Handle objections and counters?
All the pitch deck have to go through the series of objection handling. This is like sales process where a prospect is trying to trying to look for reasons not to buy. A good way to handle is to use the time tested tools
Is there any market- Yes, Le your performance metrics do the talking, or a data point that strongly supports your point of view.
Is there anyone better than you- No, We've differentiated from the competition, How your approach is 10x better. Is it business model, technology
Do you have what it takes- Yes, Our team, skills and assets, Domain knowledge, past experience in startup or corporate
You don't have traction- We do not have significant traction but we have - x repeat customers means we have a loyal customer base or y pre-sign up which means we will have our leads ready.
Your technology is outsourced- We have low technical debt and fully covered NDA on source codes or basic module is outsourced by remaining built in-house, we have roadmap to take migrate in house in x weeks.
You unit economics is no attractive: Work out LTV and CAC and establish the model. One of the major jobs of an entrepreneur is to understand the levers that impact those unit economics, and figure out ways to create structural advantages that shift them in your favor. Organic hacks to acquire users is good in early stage always.
Do I have a Business Model?
Unit economics are the direct revenues and costs associated with a particular business model expressed on a per unit basis. For instance: in a consumer internet company, the unit is a user. The fundamental unit economics in this case are:
Lifetime value (LTV): the amount of revenue a single user generates during the entire duration of their usage of your service.
Customer Acquisition Cost or Cost per acquisition (CPA or CAC): How much it costs to acquire a user. As long as LTV exceeds CPA, you have a business.