From Unknown to Unstoppable: Startup Pitch Formula that works every time!

Recently, we had our LISA (Stanford GSB LEAD Incubator & Startup Accelerator) demo pitch session with our 6th Cohort of Founders who practiced their pitch with our LISA advisors. As a Co-Founder of the initiative, and advisor & mentor to multiple global accelerators, I have watched helplessly as countless Founders, with a million-dollar ideas in their heart, struggled to find the words to bring them alive.?

For startup founders, delivering a compelling pitch is crucial for attracting investors, securing funding, and turning their ideas into reality. However, crafting and delivering a great pitch can be a daunting task. I was compelled to put together a step-by-step guide on how to give a remarkable startup pitch. Along the way, you'll draw inspiration from some of the best pitches from famous founders, highlighting what worked and why. While every pitch is unique, learning from the wisdom of experienced venture capitalists (VCs) can provide invaluable guidance. In this article, I also add some of the best advice given by famous VCs on how to effectively pitch your startup to investors, increasing your chances of success.

1. Start with a Captivating Hook:

Your pitch should immediately grab the attention of your audience. Begin with a powerful and concise opening that communicates the essence of your startup. Consider a strong hook, such as a thought-provoking question, a surprising statistic, or a compelling anecdote. This will engage your audience right from the start. Remember, first impressions matter.

Example: Elon Musk's Tesla Motors Pitch:

"Wouldn't it be amazing if you could drive a car that produces zero emissions, goes from 0 to 60 mph in under 4 seconds, and is powered entirely by electricity? Well, that's exactly what we're building at Tesla Motors."

Guy Kawasaki, a well-known venture capitalist and former Apple evangelist, emphasizes the power of storytelling in the pitch - and integrating it from the start as a hook. Structure your pitch in a narrative format that captivates your audience. Craft a compelling story around your startup's mission, highlighting the problem, your solution, and the potential impact it can have. Engage your listeners emotionally to leave a lasting impression.

2. Clearly Define the Problem:

Outline the problem you're addressing and explain why it matters. Provide relevant data and insights to demonstrate the magnitude of the problem and its potential impact on your target market. Make sure your audience understands the problem you're solving.

Example: Sara Blakely's Spanx Pitch:

"Every woman knows the struggle of finding comfortable and flattering undergarments. It's time-consuming and often frustrating. We believe every woman deserves to feel confident and comfortable in her skin, which is why we created Spanx."

Similarly Slack had a clear mission around Reinventing Workplace Communication. Stewart Butterfield's pitch for Slack reimagined workplace communication and collaboration. By focusing on simplicity, integration, and user experience, Butterfield convinced investors of the transformative potential of the platform, leading to significant investment and widespread adoption.

Marc Andreessen, co-founder of Andreessen Horowitz, advises founders to clearly articulate the problem their startup solves. VCs are looking for solutions that address real pain points in the market. Clearly define the problem, provide context, and explain why it matters. This demonstrates your market understanding and the potential impact of your solution.

3. Present Your Unique Value Proposition:

Now that you've established the problem, it's time to introduce your solution. Clearly articulate how your product or service addresses the identified problem. Focus on the unique value proposition that sets your startup apart from the competition. Use visual aids, demos, or prototypes to enhance your presentation and provide a tangible representation of your solution.

Example: Steve Jobs' iPhone Pitch:

"We have created a revolutionary device that combines a mobile phone, an iPod, and an internet communication device all in one. With its intuitive touch interface, stunning design, and access to the App Store, the iPhone will change the way we communicate forever."

4. Explain Your Business Model:

Investors need to understand how your startup will generate revenue and achieve profitability. Provide a clear overview of your business model, including revenue streams, pricing strategy, customer acquisition channels, and scalability. Demonstrate a solid understanding of your market, competition, and potential for growth.

Example: Brian Chesky's Airbnb Pitch:

"We've created a platform that connects people who have extra space with travelers looking for unique accommodations. By taking a small commission on each booking, we can unlock an entirely new revenue stream in the hospitality industry without owning any properties ourselves."

"Know Your Numbers" as Naval Ravikant puts it, a renowned angel investor and co-founder of AngelList, emphasizes the importance of understanding your financials inside out. VCs want to see that you have a deep understanding of your market, potential revenue streams, and how you plan to achieve profitability. Be prepared to discuss key metrics, projections, and financial forecasts with confidence.

5. Showcase Traction and Milestones:

Highlight your startup's progress and achievements to build credibility and instill confidence in your audience. Share key metrics, customer success stories, partnerships, and any notable milestones you have reached. Investors want to see that you've made tangible progress and have the potential for future growth.

Example: Mark Zuckerberg's Facebook Pitch:

"In just a few months, we've already reached over one million active users on our platform. Our growth rate is accelerating, and we're seeing incredible engagement from our users. We're on the verge of revolutionizing the way people connect and share information online."

6: Emphasize Your Team:

Investors invest in people as much as they invest in ideas. Highlight the expertise and experience of your team members.

Ben Horowitz, co-founder of Andreessen Horowitz, stresses the significance of the founding team. Investors invest not only in ideas but also in the people behind them. Highlight the skills, expertise, and track record of your team members. Demonstrating a strong and complementary team dynamic instills confidence in investors that you have the capability to execute your vision.

I authored a book - Trailblazer Founders, which also emphasizes on how the founder and the team skills are the No.1 reason why venture capitalists invest in an idea. These are stories of Tope Awotona, Founder of Calendly – one of the few Black Billionaire with a net worth of $1.2 Billion; Tristan Walker, the Founder & CEO of Walker & Company Brands, the first Black CEO under the Procter & Gamble umbrella in its 180-year history; Shraddha Sharma – woman founder and CEO of YourStory, a media platform for entrepreneurs, who navigated a fascinating path over the past decade – from old media to leader of a multi-million-dollar enterprise in India; Lisa Shu, an Asian woman who is the founder of Newton venture program – bringing together the likes of London business school and local Globevc to build a program aimed at providing equal opportunity to thrive in venture capital to create a more accessible and diverse ecosystem. All of these stories confirm that "people are the name of the game" when it comes to getting invested!

7. Last but not least, be Open to Feedback

Brad Feld, managing director of Foundry Group, stresses the importance of being open to feedback during the pitch process. VCs may have valuable insights and suggestions that can strengthen your pitch and improve your business model. Be receptive to constructive criticism, ask for input, and be prepared to adapt and iterate based on the feedback you receive.

Pitching your startup to investors is an art that requires careful preparation, effective communication, and a deep understanding of your business. By incorporating these elements into your pitching strategy, you can enhance your chances of success. With these insights in mind, you'll be better equipped to deliver a compelling pitch that captures investors' attention and secures the support your startup needs to thrive.

I have further created a free download of Storycards to help you include Storylelling into your pitch - a framework that can convert your ideas to stories in under 15 minutes. Get your Storycards here

Further Resources:

Your BRAND defines YOU and your STARTUP SUCCESS!

About the Author:

Deepti Pahwa is an Author,??Moonshot Thinker, and Ally for Entrepreneurs & Innovation Leaders.?Her book –?Trailblazer Founders: Breaking through Invisible Boundaries (May 2023)?continues to be No.1 New Release in Venture Capital, and one of the Top books ever released in VC category on Amazon.?

Drawing from her extensive experience, she has crafted a unique approach to 2 of her highly sought-after Coaching Programs –

-???????“Founder to CEO” Coaching for Startups that develops multiple aspects of?Founder Leadership, Product Innovation?& Scale-up skills.

-???????“Joining the C-suite" Executive Coaching for Innovation & Diversity Leaders that develops multiple aspects of?Building “Power & Influence," Owning your Role, Culture Design, Product Innovation?& disruption canvas.

Learn more through?Linkedin?or her website:?deeptipahwa.com