Pitching Investors vs. Customers: Tips from Michael Seibel
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.
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.
"Marketing language is fluff that an investor has to filter out to understand what you really are trying to do."
"Different is that those websites are ranked by how other websites link to them and so those results are way more relevant."
Investors are interested in understanding what you do and how far along you are in the simplest language possible.
"What do you think you know about this market that other people or competitors don't understand?"
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.
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.