Here's a 2-step guide on how to pitch investors for beginners:
[A thread]
Step 1. Create a powerful narrative
Investors might not like your business. But everyone loves a good story.
Stories are powerful tools to get people to understand and care about your ideas. Being overly technical in your pitch can be off-putting and not very compelling.
A simple narrative strucutre:
1️⃣ The world is a certain way (your problem)
2️⃣ Something changes (your solution)
3️⃣ The world is changed for the better (justify your solution).
General tips for a better narrative:
- Keep it concise and simple to understand
- Practice. A lot.
- Know your numbers/metrics well
- Define your own unique and authentic style of pitching
Step 2: Set up meetings with investors
Go wide!
Reach out to as many investors as possible. Cast the net and widen your funnel to expose yourself to as many opportunities as you can.
Think partners, not firms.
You’re going to be spending most of your time communicating with a partner, so make sure you get to know them. Find out whether this is someone you enjoy working with.
Set up meetings in advance, and line them up!
Setting up a bunch of meetings close to each other will make it easier to shop around, and will give you more leverage with other investors (especially when you have a term sheet).
More secret tips at my startup therapy session on YouTube 🙂
You can also get a written summary from my Quest Digest weekly 🌎
HEADS UP! You have until Tuesday 12pm PT to make a bid on one of my NFTs!
ALL BIDDERS will be entered for a chance to win $10,000 in bitcoin and ALL NFT holders will be invited to a Zoom call with me 👀
If you’re intimidated by the top bids on the 1/1s, there are 97 versions of my “Selling Twitch to Amazon” NFT, so that’s a great way to participate and to make a bid!
1. Did Citadel’s hedge funds (Citadel Global Equities and Citadel Wellington) hold any short positions in stocks heavily owned by Robinhood users? And did they increase them in the past few days?
2. Subpoena all emails and phone calls between Citadel Securities and Robinhood
3. Subpoena all emails and phone calls between the Wall Street banks and Robinhood (Robinhood gives its shares to Wall Street banks to lend out to hedge fund clients to short through prime brokerage).
Habits can be brutal. I’ve spent the majority of life battling bad ones: including wrestling with alcohol addition for 20+ years.
I learned how to hack habits with help from @JamesClear’s book Atomic Habits. Here’s a summary of what worked for me:
Habit-building is science. Think from first principles.
Rule #1: make it obvious. To change behavior, put up cues in your environment as a constant reminder.
I built a home gym (with great effort), now I can’t escape from daily exercises.
Rule #2: make it attractive. You want to sugarcoat the pain.
I put my phone, with Twitter and other social media apps in my gym (yes, gym hour now 💦). It’s punishing, but works because the incentive is very compelling.
I just gave a talk to the W2021 YC batch. It's my favorite startup audience to talk to. Here are some of the highlights:
Finding product market fit is the critical thing to do in a startup.
Everything else: demo day, what investors you get, how much you raise, what press covers you -- it is all window dressing.
Many founders don’t want to talk to their customers because it makes them vulnerable, because it's hard work, because it's scary. Creating a tight feedback loop with customers is the one thing that will help you discover PMF.