What are the most important things to avoid when pitching a startup?

Sometimes folks offer a solution in search of a problem. If the problem is not intimately understood, it’s hard to define. If you can’t define it well, it really doesn’t matter how great your solution is if people don’t recognize it as a problem to be solved. Extensive customer discovery is critical to a clearly articulated problem and a relevant solution.

In presenting your startup, prioritising simplicity is crucial. Begin by clearly identifying a pain point that your solution addresses. The existence of a genuine pain point, one that customers are willing to pay to resolve, is fundamental. Demonstrate concrete evidence of this market need. Then articulate why your team is uniquely positioned to tackle this issue, outlining your vision, the potential value of the solution, and its future trajectory. Remember, the significance and relevance of the pain point cannot be overstated; it is the cornerstone of your pitch

Has the founding team operated in an industry or role that's given them an unfair advantage when identifying a problem or painpoint? How severely did they feel this pain and how are they uniquely placed to address it with a (technology-driven) solution?

Making unsolicited pitches: it’s important to make sure you have a warm introduction before pitching your startup. Having a limited understanding of your business scope: Investors want to see that you have a clear understanding of your business and the market you’re operating in. Not bringing enough materials: Make sure you have a pitch deck and financial projections, before pitching your startup. Lackluster presentation skills: Make sure you practice your pitch and have a clear and engaging delivery. Avoiding the hard questions: Investors will ask tough questions, so it’s important to be prepared to answer them. Making the pitch without a demo: Forgetting to follow up.

One of the greatest mistakes made by new company founders is focus on the product/technology with a back-seat view of the real customers needs, problems, or goals. Too often I hear from Startups (pre-funded, pre-revenue, and others) is that they need to finish their MVP before talking to customers. They users, buyers and recommenders will tell you whether something is needed or valuable. Start with them, even if on paper and a drawing.

How are you different from the competition and why will your core difference be enduring? At pre-seed, where we invest, it's not usually a core focus of our evaluation, but you should be able to articulate a couple of potential strands that could lead to a strong defensible business.

Standing out is the name of the game when it comes to catching the eye of VCs. If your startup sounds like a copycat or just a small tweak of something that's already out there, you're not going to turn any heads. VCs want to see that you've got something special—whether it's a killer idea, top-notch tech, a rockstar team, or a network effect that makes you the real deal. So, ditch the clone act and amp up what makes you one-of-a-kind. That's the ticket to getting noticed and scoring big in the competitive startup scene.

This is true 99% of the time, especially in tough fundraising environments such as now. There are cases, however (ex: Figma, OpenAI), where companies raise millions without even knowing how they will generate revenue. It boils down to how big the potential opportunity is and how well the team is positioned to execute. Traction indicates that the problem is real and that the team can do something about it. If you can convince investors of the same thing without traction (if you are in the top 1%), you can fundraise.

No traction equals no interest! Investors want to invest in startups that is not only solve actual problems but also there are actual customers or users are actual interested in it and willing to pay for it. One major challenge founders face is to get the wheal going, it's like an equation, founders need to focus on traction to ensure they are on the right way. Yet, a very small percentage is excluded which is nearly 1%, those who have highly relevant experienced and complementary founding team with outstanding track record of success, Or the innovation in the product is so huge that will be the next google or what we call disruptive innovation!

Ignoring investors' needs. In my experience in mentoring startup in Manhattan, its incredibly common to see founders become solely focused on their vision of what they are trying to build. But its almost impossible to raise capital without addressing how investors will get paid (and earn a return on their investment). In order to get what they want, startups should focus on what investors need.

What could go right? In an ideal world where all stars align, what would the future look like? Too few founders share how they are thinking big enough and don't show the path to $1bn+ outcomes.

Effective fundraising involves a three-phase approach: Phase one is all about preparation: refining your pitch, building a persuasive deck, assessing cash requirements, and organizing your data room for due diligence. In phase two, identify 100-200 potential investors, prioritizing those most aligned with your vision and sector. Remember, warm introductions are golden, leading to over 90% of VC investments. Phase three is execution: customize your approach for each investor, use feedback to fine-tune your message, and focus on creating a sense of urgency and momentum. This strategic trifecta can significantly increase your chances of a successful raise.

Part of effective preparation is making sure you’re free to take the pitch where it needs to go. I’ll occasionally talk with founders who are hesitant to talk details. When they’re not quite sure what is and isn’t their core IP, that hesitancy shows—especially in Q&A. One way to avoid this is to spend a couple of hours getting your IP organized, knowing where those guardrails are, and if needed, getting a provisional patent application filed before the pitch. It’ll really free you up to be candid with investors, and it’ll show them you’re serious about defending your company’s value proposition.

A lot of my founder friends struggle with navigating this question: what feedback is the right feedback? My response is "it depends" -- how annoying, right??But I break it down into three vectors: 1. Is the investor specialized, or are they more generalist? The former's on business model and competition is helpful; the latter's helps with how they see your idea within their portfolio construction (this can be a helpful signal for future rounds). 2. Is this fund the right stage? Being "too early" or "too late" is subjective, so take it with a grain of salt. 3. Finally, is the investor thoughtful in their feedback? I believe the best investors deliver negative news with empathy. If they have an axe to grind, take their guidance lightly.

I see this often in first-time founders in our initial meeting. I purposely ask stupid questions or point out facts that pose risks to the business they want to fundraise for. The goal is to assess how they respond to feedback and communicate their reasoning. Founders who accept feedback and build constructively on it have an unfair advantage over founders stuck in their ways.

The most important fundamental for any startup is the Value Proposition... The intersection between the user and their needs, and the product. It should be a no-brainer, easy to understand, have an immediate and fast return on investment, and a benefit for anyone involved in the buying process. Tell the STORY! What are they doing now, what will this do for them and how much better will their lives and business be, compared to alternatives and that there are MANY companies that have the same issues to resolve.

Reserve Slides. Note down the questions you get when you practice pitching to friends, family, existing investors, partners (or whoever), and prepare reserve slides with answers to those questions that take place AFTER your pitch ends. So, instead of just answering questions standing there, you can show your reserve slide as the answer. After each pitch, keep adding reserve slides for new questions. This will show investors you are good at receiving feedback and thinking critically about your company/solution.