Venture Capital 101: The two rules of startup blurbs

From Founder to VC: My Guide on Crafting the Perfect Startup Blurb

Having been a founder who constantly sought investment, later an angel investor, and now a VC, I've been on both sides of the table. I know how vital the initial touchpoint with investors can be. That's your startup blurb, and it has the power to open doors.

When I was seeking funding, a well-crafted blurb got me meetings. Now, as an investor, a great blurb can immediately capture my attention and make me think, "This could be the next big thing."

Michael Seibel from YC once emphasized that standout founders excel in clear communication. Your blurb is your chance to showcase this. Watch Y Combinator CEO Michael Seibel's video for more on this.

Understanding the Startup Blurb A startup blurb succinctly covers the core facets of your company: the problem, your solution, traction, team, and funding round details.

Its Purpose? In my inbox, I receive countless cold emails and warm introductions. Your blurb must answer a series of quick questions I and other investors have:

• What's your product or service?
• Who benefits from it?
• Is there a genuine demand for what you're offering?
• Who's behind this venture?
• What's your current funding situation?

And the beauty of a blurb is its brevity. In under 30 seconds, it should give me a snapshot of your startup and compel me to learn more.

Let me repeat that:

In under 30 seconds, it should give me a snapshot of your startup and compel me to learn more.

Rule #1: Conciseness is Key

Back in my founder days, I had to learn this the hard way. Investors are inundated with opportunities daily. You've got half a minute to impress. Focus on the essentials: product, market, progress, team, and funding specifics. Everything else is fluff.

Rule #2: Clarity Above All

When I read a blurb, it shouldn't be a riddle. Strip it of industry jargon and flowery marketing language. Simplicity is your ally.

Crafting Your Blurb: A Blueprint

1. Elevator Pitch: This is your one-liner. For instance:“NeuraHealth, an AI-powered platform that monitors patient health and provides proactive mental health insights reducing care costs by 40%.”
2. Traction Highlights:Showcase your most impressive milestones. When I was pitching my first startup, I'd lead with metrics like MRR growth or user acquisition rates.
3. Team Overview:Investors, including myself, bank on teams. Highlight your team's most relevant experience.
4. Funding Specifics:Give a snapshot of your current funding round and any previous rounds if applicable. When I was seeking investment, I'd always emphasize the momentum behind my fundraising.

Example Blurb: NeuraHealth, an AI-powered platform that monitors patient health and provides proactive mental health insights reducing care costs by 40%. Key Metrics: 30k active users, 150% YoY growth, app launched six months ago. Team: Rhea (CEO with a Ph.D. in Neuroscience) and Max (CTO with a decade in AI development). Currently seeking a $1.5M seed round; $400K secured in the first month.

Your blurb might not match this template exactly, and that's okay. In my investment journey, I've encountered numerous variations, but the ones that stood out were always clear, concise, and compelling.

Blurb Checklist for Founders:

• Is it succinct?
• Is it devoid of jargon and clear to anyone?

Does it encapsulate:

• Problem & Solution
• Business Model
• Customers/Traction
• Team
• Funding Goal
• Market Potential (optionally, especially if pre-traction)

Remember, your blurb might just be the key to unlocking that crucial investor meeting. Craft it wisely!

Last but not least: always try to get a warm or hot intro to a prospective investor through one of their portfolio founders, a current investor of yours, or a friendly VC.