I was invited to an incubator to prepare founders for a live pitch competition later this month. The winner will receive a cheque (not huge) but also meet more investors by being invited to other networking opportunities. The competition is like a filtering process.
After two weeks, I’d like to summarize what I observed and share some of the most common feedback I gave and heard. We had other founders and investors attend the practice sessions.
Tip 1: show up to everything
Not gonna lie. I’m kind of appalled at how casual some founders took this. One even got disqualified because he wanted to show up for the last session only out of 4 opportunities.
We literally had the managing partner of a fund there along with multiple angel investors. The practices aren’t just practices. They’re mini networking events without all the noise and competition. You never know what might happen.
I know multiple founders that have received offers before a pitch event (not at this one that I know of) and a demo day because they practiced in front of the right people. Two YC founders I advised had it happen to them. I’m even considering investing in these founders myself because I’ve spent more time and gotten to know them.
Tip 2: less is more and show don’t tell
Most slides were jam packed with 8pt font and investors said they were distracted. The slides everybody liked had one sentence and the founder said the bullets that would have been on it originally verbally.
The managing partner said multiple times: the presentation slides I want to see live are different than the ones you send us to read by ourselves.
Even better where the slides had one big image showing the concept that made people curious while the founder connected the dots and created an aha! Moment. But don’t use video (unless you want everyone to stop and watch it) because that was even more distracting.
Here’s a power move I taught one team that went really well: I told them to bring props as proof. So they brought these big silver and copper bars that came from their recycling solution. They handed them out to the crowd first and they should do the same with the judges.
Tip 3: don’t bash the competition
A founder tried this and it bombed. It’s kind of like going on a date only to hear them trash their exes the whole time. Might be true but it’s not the time or place. You’d rather acknowledge what you’re learning from them and say you know something they don’t.
Tip 4: ask for investment
This also surprised me. I think some founders had imposter syndrome. The same way founders forget to ask for the close when doing founder led sales. And when an angel investor asked “are you raising?” They hesitated and didn’t have a clear answer. I interrupted them and told all the founders the answer should always be “we’re always raising and more than happy to talk.” It doesnt mean you have to take money in the current round. But you’d rather have and not need than need and not have.
While we’re here, I like to share how much we’ve raised so far and even have committed, unless there’s a good reason not to. It creates FOMO especially at a pitch competition.
Tip 5: create the vibes
One angel said to the founders, “I invest based on the team and vibes.” He explained that domain expertise is important but the founders enthusiasm and energy separate the top founders.
You don’t have to be a master TED Talk presenter. But at least show the passion and swagger that you’re the team that wins.
Tip 6: tell customer stories
If you’ve heard of the heroes journey then you know that you’re not the hero. The customer is. You’re the guide that solves the customer problem and if you tell that story, investors love it.
One founder started with a customer with a problem and by the end showed how the problem was a real customer and how their life changed. Angels in the audience were like, “where do I sign?” I expect this founder to win the competition.
I could think of a bunch more but these were the most common while not repeating the same old advice. The moral of the story is don’t sleep on pitch competitions. If anything they’re good practice.
Hope this helps and if you’re pitching investors, wishing you the best. Go get ‘em.