Tiffany Luck, a partner at NEA, on why starting a company can be more exciting than extreme sports. She walks into the heart-pumping, hair-raising challenges that accompany entrepreneurship. Using the analogy of trekking to Everest’s Base Camp, she lays out the need for careful planning and self-awareness for entrepreneurs. During a recent call to kickoff the required discussion, Luck articulated them as five guiding questions. These are every founder’s responsibility to answer in any pitch to a future investor.
According to Luck, knowing the core of what you’re doing is key. The first two questions are known as The Whys. They further amplify the founder’s unique perspective by diving deep into what’s happening in today’s market. These two questions lay the groundwork for a powerful story that hooks investors’ interest.
Luck stated. So why is now the right time to make it happen? Dive deep into the founder’s origin story. Make them feel your desire to fix a real pain point in order to forge an emotional bond that will have investors clamoring to hear more.
The Importance of Team Dynamics
According to Luck, it is essential for founders to articulate who they have recruited to help them on their entrepreneurial journey. Similarly, she emphasizes the need to bring together a team that will have diverse skills and skills that go beyond each other’s lanes.
“Who have you recruited to do this crazy thing with?” Luck asked. A well-rounded team can significantly impact a startup’s success, and founders should emphasize how their team members share an obsession with the product’s mission. This common purpose not only hardens the team’s focus, but serves to instill confidence in investors.
Luck elaborated on how a cohesive team can navigate the tumultuous startup landscape: “You’re going up on milestones, different camps. You’re encountering challenges, you’re weathering storms, and you know, eventually you’re trying to make it to the top, to the summit.” This comparison continues to drive home the point that when you are out there experiencing the tribulations of creating your own firm, collaboration is KEY.
Articulating the Problem and Solutions
Luck next turned to “The What,” or how to define the problem your startup will solve. Founders need to strongly articulate how this problem impacts people and what solutions are already in the market. Recognizing where the time is right to be a disruptive force is key to attracting investor attention.
“The What sets the stage, telling the investor what the problem is, how it affects people, followed by what solutions exist today and where lies room for disruption,” Luck detailed. She stressed that this part of the pitch is the most important. It offers a bird’s eye view of market dynamics and landscape.
To really capture investor interest, Luck recommends introducing a product demo at this stage. “If you think a picture is worth 100 words, I think a demo is worth 1,000 hours,” she remarked. A polished demo under the right circumstances can go a long way in painting a startup’s potential and making it the most attractive solution.
Milestones and Progress
The final question revolves around “The How.” So it’s imperative for founders to effectively signal their plans for reaching those milestones and show how significant progress is being made today. This should start by establishing clear short-term outcomes in addition to long-term plans.
Luck posed. By addressing these questions, founders can equip investors with a comprehensive roadmap that showcases their strategic vision and operational proficiency.
Luck made it clear that these are questions that any startup should be aggressively asking themselves. They should absolutely consider them while crafting their pitch. “These are just meant to be the fundamental basics,” she emphasized. By tackling these essential elements, founders can weave together impactful stories that capture the interest of their target investors.
