Pitching to Investors: Strategies for Monetization and Startup Growth
This article is a summary of a YouTube video "How to Pitch to Investors, Michael Seibel, CEO Y Combinator" by Aby James
TLDR Founders should focus on industry-standard monetization strategies, their own accomplishments, and a plan to launch and grow their startup without needing to raise a lot of money to attract investors.
Key insights
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Founders should be armed with a 30-second pitch and a two-minute pitch to effectively communicate their company's value to potential investors.
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Convince investors that you're moving extremely quickly by highlighting your traction, whether it's in terms of sales, revenue, or user growth, or by emphasizing how fast your team has been working and launching products.
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Your unique insight should be able to tell investors something they don't know or understand about the market, and it should be concise and impactful.
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Investors are more interested in the technical expertise and experience of the founders, rather than their awards or academic qualifications.
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Building credentials as a founder is crucial, and investors look for evidence of past accomplishments to gauge the potential success of a startup.
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It's important to have traction before fundraising, as investors prefer to invest based on proven success rather than just starting out or launching.
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"Always plan for needing less money and always be able to show that you've got a fully committed team."
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"When fundraising, it's better to schedule all of your meetings during the same week, signaling that you're not desperate for the money and that you're busy building."