I am catching up on Dave McClure's blog. Here is another good post (strong language alert): when pitching to venture capitalists (VCs)::
- When people emotionally connect to the problem
- You earn the permission to introduce your solution
Many startup pitch presentations are designed the other way around:
- Take some technical architecture slides from the product roadmap deck
- Add some stuff upfront to show that the world needs this ("that $1bn IDC number sounds good", "hey, let's plop in this Gartner quote and leave the date February 2007 out")
OK, there is more to an investor pitch than just talking about the problem. The relative importance of the problem pitch on the development stage of the market you are operating in.
- If you would be pitching Twitter 5 years ago, you will have had to spend 99% of your presentation on why there is something missing in the way people communicate on the Internet. "Yeah right, people are interested to follow SMS-es from 1,500 strangers all day?". Pitch the problem.
- If you claim to be able to beat the Google search engine, you better spend 99% of your presentation showing that your technology works. "OK, let's see what comes up when I type [VC PARTNER NAME]". Pitch the solution.