Greg White (00:04):
When you’re pitching your startup, you have one shot to get the attention of people who listen to fistfuls of pitches every single day. So, if it feels clinical, it is. These people are not cold. They’re just finely tuned machines and they can detect greatness, weakness, flaws, and pure bullshit in an instant. I’ve been there, and I’ve done it right and I’ve done it wrong – so, so wrong. And I’ve discovered the secrets to this finely honed craft. So, I’m going to share what you need to do to get the attention of the people that can provide you the funds to make your dream a reality. And so, you can project your startups value without sounding like an infomercial. So, listen up.
Greg White (01:03):
Hey, it’s competitive out there. There is a lot of money, but there are also a lot of startups. So, you need to know how to effectively pitch your startup. And by the time we finish, you’ll not only know the seven elements required to construct this pitch, but tells your story in just three minutes. But you’ll also learn a bit about the complex psyche of venture capitalists and what they’re looking for when they sit down to evaluate your life’s dream in just sound bites. Plus, I’ll tell you why you should never ever try to bullshit a venture capitalist and what happens if you do.
Greg White (01:49):
First, let’s understand the struggle, the struggle both for founders and for investors. I look at a lot of pitches and I’m on the lower end of the scale compared to many VC in the world. But let me assure you that I am a ruthless assassin when it comes to evaluating these pitches. If you’ve ever sent me a pitch, you know that not only do I evaluate your story – and by the way, that’s what it is, a story about how you are going to make a major impact on the industry, the market, or even the entire world. When I and so many others review your story, I’m also compelled to deconstruct your pitch approach. I’ve become semi-infamous for decimating pitches and leaving them lying on the floor in a heap. I do it with love, of course – well, tough love. Look, this love is required to make a good founder into a great one or to expose a weak founder often to themselves and save them a lot of pain and struggle by discovering. They’re not cut out for startup life.
Greg White (02:59):
Of course you are cut out for startup life, aren’t you? You’re undeterred by some of my previous episodes, so you want to get into Supply Chain Tech and you’ve boldly come here for more knowledge. So, what are the seven things you must do to pitch your entire story, your dream, your vision, your passion, your life’s work in three minutes and make it stand out to someone that could conceivably see ten or more pitches that very same day? Before we launch too deep into that topic, let’s start with these keys to making your pitch land with investors. You have to be genuine, concise, open, and coachable. Genuine is critical. It’s too hard to be anything but genuine and present in three minutes.
Greg White (03:50):
As far as concise, here’s the good news, just the process of creating a pitch will force you to break your company down into its most salient points. Create your pitch early and revise it often. You’ll be forced to learn what is important, what’s most important about your life’s work. That genuine understanding of your business will come through in your presentation. But if you don’t have that understanding, believe me, that will also be revealed either consciously or subconsciously. If you don’t know, say so. Your audience knows the truth anyway.
Greg White (04:32):
Another thing you need to acknowledge is that, you don’t know best. And the best know it. So, of course, be firm in your convictions, but don’t be bullheaded when challenged. Being coachable and team-oriented is key when teaming up with other people, and especially when you’re using other people’s money.
Greg White (04:54):
All right. Look, now you’re the best version of you that you can be. You’re genuine. You’re knowledgeable, you’re open, the ultimate team player. What key elements of your presentation that assure you communicate your story in three minutes? One, define a compelling problem. Compelling problems are an absolute necessity. Think about why someone would choose your startup to solve their problem rather than their ERP, or another established player, or opt for solving another problem. If they can’t, opt out. It’s compelling. Present what will drive the market to your door.
Greg White (05:40):
Two, show a differentiated solution. Differentiation is tough. It’s been claimed. It’s been defended. But it’s rarely truly been done. And it’s hard to communicate so that everyone gets it. Consider this, even the largest techs aren’t substantially differentiated. AWS versus Google versus Azure, brand bias rather than real differentiation aligns the market with Cloud providers. Differentiation has to be a deep and wide moat to separate and defend you from the competition. And, ideally, you have the only barge to cross that moat. Present your unique value proposition and how you’re going to defend it.
Greg White (06:35):
Three, display your large and driven market. The market needs to be large and durable enough to support multiple companies rapidly growing to 50 million U.S. in Annually Recurring Revenue, ARR. Big markets are everywhere and it’s table stakes to be attacking a $1 billion market these days. Nothing smaller is of any interest. A driven market is a different issue, yet markets are driven by the risk of the compelling problem we started with. And this is important so I’ve left it unsaid until we talked about both the compelling problem and the solution, because it impacts not only how, but whether you build your company. A pain or fear of consequences defines the compelling problem. ROI does not compel. It motivates. Companies stroll slowly and casually towards ROI, they run fast away from pain and consequences. Present the market size, reaffirm their drive to run away fast from the problem and straight to you.
Greg White (07:49):
Four, compare the vast competition you face. Yes, I said vast. Did you think the market would only run to you? It’s unlikely no matter how unique you are. And chances are good that someone is doing something that could cross that moat of yours, or at least get to the money you deserve from your prospects before you can get it from them. Express why the current solutions don’t work and the risk they represent. Share openly and honestly about how you stack up against the competition. Now, that’s different than picking a few strengths and saying why you’re better. We see that trick all the time and nobody falls for it. Plus, you must realize that a competitor is anyone who could get the budget dollars you’re after whether they’re stronger, they’re weaker, or even a completely unrelated solution. Think of your competitive comparer as a table of differentiators and strengths from greatest to least. But please, please don’t do a magic quadrant. We all know where you’ll land and we all know that’s bunk. Compare yourself to the competition, acknowledge your weaknesses and how you’ll confront them to build strength.
Greg White (09:23):
Five, show go-to market strategy and meaningful traction. Who will you sell to? How you’ll get to them? The ARR you’ll generate, because ARR is all that matters. Present your strategy, your methods, your growth expectations in terms of unit economics or how many of what you sell. You have to sell to get to your numbers. And back it up whenever you can with actual results. Show how it started and how it’s going, pilots converted to ARR, ARR growth month-over-month or year-over-year. Don’t make investors dig through the numbers to assess your real traction. Don’t make them decode your language in your pitch deck to determine whether it’s real annual recurring revenue. Lack of clarity breeds doubt and distrust.
Greg White (10:24):
Six, it’s finally time for the ask. Usually, of course, it’s funding. Don’t be shy. By this point, you’ve earned the right but be precise. No ranges. Clearly and explicitly state how much you want, what you’ll do with the money. When you make your ask, make clear the precise milestones you’ll reach, not the months or years it buys you. Because investment isn’t meant to buy you time. It’s meant to buy you accomplishments, milestones, outcomes. Share what you’ll deliver and how that sets the company up for the next phase of growth.
Greg White (11:12):
And, finally, share your colossal vision. Be sure to let your investors know you’re just getting started. Why is this only the start? Where will you go next? And what will the world look like when you succeed? Paint thee, and they all live 10X better ending. But do not confuse vision with exit. Exit is different. If investors want to know what you see as your exit, they will ask you after your three minutes are up. And if they do ask, your answers should be genuine and always the same because it’s absolute unequivocal truth. We’re focused on serving market needs and building a company that will sustain and grow that commitment. When we build undeniable value, the long-term path for the company will become apparent. Thank your audience for taking the time to be part of your journey, and that’s it. It’s that simple.
Greg White (12:18):
I’ve just told you in a lot of minutes what it takes to pitch your company in three. Now, to truly make this pitch land, you have to practice, practice, and practice in front of the mirror, in front of people. Preferably people you don’t know or who don’t know what you do. Your family makes a great muse. Or colleagues or college roommates, brutal ruthless colleagues who will tell you they don’t get it or even that your baby is ugly. Practice will assure your story is told like an inspiring classic to rave reviews.
Greg White (13:06):
And as promised, I’m going to share you why you should never ever try to deceive a venture capitalist, even in the slightest way. VC’s are like cops. We hear romanticized dreams, exaggerations, downright lies every single day. Many of us have been founders or we spend our careers evaluating founders. You can’t bullshit a bullshitter. And when you do, it gets around. Many of these cats hung out at the club or sleep away campus. Kids, they went to college together, they started and ran companies in the community you’re pitching in. They know one another and they talk all the time.
Greg White (13:59):
Complete open honesty is the only policy. That’s it. That’s the seven elements you must pitch. You must have in that three minute pitch: First, drive home just how compelling the problem is. It’s got to be a big hurt for your market. Second, identify the impactful ways your solution is unique and defensible. Why will the market choose you? And how can you sustain that advantage? Third, convey the size of the market you’ll serve. What makes them move and how long the market will sustain? Fourth, identify your competition in clear, well-thought out table, and discuss how you’ll go to war. Fifth, share your go-to market strategy and your results in ARR, only ARR, real ARR. Make it easy for investors to see real traction. Six, make your ask, presumably funding or preparatory relationship prior to a funding process. Make it precise. Make it clear the milestones you reach. And number seven, project your vision. Where you go from here and how the world looks when you’ve accomplished that vision. Remember to be genuine, concise, open, coachable, and, above all, rational and honest.
Greg White (15:50):
All right. That’s it. That’s your TECHquila Sunrise Awakening. Put it to use. Take your shot. Three minutes. Go.
Greg White (16:06):
How can I help you improve your shot at Supply Chain Tech success? Four ways. One, subscribe to TECHquila Sunrise, and click the notification bell to make sure you get our new video every week. Two, follow me on LinkedIn and see my Supply Chain summaries every weekday. Three, if you’re a startup founder or a growth stage leader, and you need an active advisor to help you propel you through your Supply Chain Tech journey, I’m currently considering select strategic advisory roles. Or four, if you need an incubator or investment for your Supply Chain Tech, find me and reach out on LinkedIn, and let’s talk.
