Pitching Investors vs. Customers: Tips from Michael Seibel

Name: Pitching Investors vs. Customers: Tips from Michael Seibel
Uploaded: 2023-03-09 21:10:43
Description: Successful business pitches require understanding the industry jargon, identifying customer problems, and showing how the solution can help them personally, while investors and customers have different focuses and require separate pitches.

This article is a summary of a YouTube video "How Pitching Investors is Different Than Pitching Customers - Michael Seibel" by Y Combinator

TLDR Successful business pitches require understanding the industry jargon, identifying customer problems, and showing how the solution can help them personally, while investors and customers have different focuses and require separate pitches.

Key insights

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The investor pitch and customer pitch require different approaches, as investors may not have the same personal interest in the problem being solved and are primarily focused on the potential for building a big company.
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"Marketing language is fluff that an investor has to filter out to understand what you really are trying to do."
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"Different is that those websites are ranked by how other websites link to them and so those results are way more relevant."
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Investors are interested in understanding what you do and how far along you are in the simplest language possible.
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"What do you think you know about this market that other people or competitors don't understand?"
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When pitching to customers, it's important to delve into the details and address their specific needs, whereas with investors, the focus is on the bigger picture and potential market impact.
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YC founders initially struggle to merge their customer pitch and investor pitch, but it is better to have two separate pitches to effectively communicate with each audience.

Timestamped Summary

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00:00
Customer pitches require understanding industry jargon, identifying customer problems, and showing how the solution can help them personally.
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01:03
Scientists have discovered a new way to convert plastic waste into useful chemicals.
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01:31
Summarize and extract key ideas from text with our service, keeping only the most important information and context while being concise and avoiding redundant words.
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02:13
Google ranks websites based on links from other websites to provide relevant search results.
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02:46
Summarize and extract key ideas from text with our service, keeping only the most important events and ideas in a concise and contextual manner.
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03:31
Determine product, customers, market, pricing, insights, and team for successful business.
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03:58
Investors care about functionality, onboarding, pricing, and problem-solving, while customers focus on how the product applies to their specific needs.
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04:35
Focus on business aspects in investor conversations, separate pitches needed for investors and customers in YC.