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Lessons from 150 startup pitches

126 points| tsondermann | 15 years ago |blog.asmartbear.com | reply

17 comments

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[+] jkincaid|15 years ago|reply
Regarding this one: "Pretending your faults don't exist."

Having seen quite a few pitches myself, one good thing you can do is point out your major flaws/obstacles before you're asked about them (assuming they don't clearly spell out your impending demise).

This may seem a little counterintuitive, but it lets you present the issue in a better light and explain how you're going to fix it, instead of having the investor feel like they've discovered a glaring weakness that you were trying to brush under the table. I believe lawyers use a similar technique.

One caveat to this: I'm a blogger/reporter, so investors may have a different perspective. But I'm guessing it holds true for them too.

[+] adamesque|15 years ago|reply
This ties in to an amazingly important (and rare) personal characteristic: self-awareness. Being able to honestly identify your own strengths and weaknesses is the only way to systematically build the former and eliminate the latter.

In my experience, few people are able to assess themselves effectively; it's too easy to slide in one of two directions: avoidance or neurosis. But as the saying goes: the unexamined life is not worth living.

[+] arturadib|15 years ago|reply
I was really surprised to see this post from Jason; it seems to go against most things I've read from him in the past, including one of my favorite startup posts:

http://blog.asmartbear.com/your-idea-sucks-now-go-do-it-anyw...

I was involved in the hiring process for faculty members in academia, and our approach has always been to invest primarily in individuals, rather than in ideas. Ideas are disposable, and competent individuals will quickly learn how to adjust their ideas to the circumstances.

Case in point: Jason's own product Code Historian (see blog post above).

I understand the difficulties that come with 100's of applications. The admission criteria always end up being far from ideal. In my former academic circle, we relied heavily on letters of recommendation; both who wrote them and what was said about the candidate mattered. Everything else the candidate wrote was only glanced over.

I would think something like that can be more effective than meticulously analyzing someone's pitch.

[+] rythie|15 years ago|reply
It seems from reading that post that PayPal's and Flickr's original ideas were ahead of their time.

Paypal's original idea is still a problem for people and it's similar to what Square is doing now.

Flickr's original idea is lot like the social MMOs we see now like FarmVille and many of the other Zynga games.

[+] smartbear|15 years ago|reply
Hi Arturadib, Jason here.

I think you'll find when reading the individual posts on each topic that it's not contradictory.

Also there's a distinction between seeking things like competitive advantage -- which of course you have to do -- and going ahead and doing something regardless.

That is, "just do it" is the prime mover, but of course you have to be seeking things like happy customers, competitive advantages, ability to describe what you do in 30 seconds, etc., as you go.

Also remember this is in the context of pitching investors, at which point you do need some ideas -- you can't pitch "I'll just try stuff."

[+] ebiester|15 years ago|reply
I don't find it contradictory. Go do it anyway, but don't make these mistakes when trying to get someone else's money.
[+] edanm|15 years ago|reply
The important point is to understand what the person is and is not aware of, when they make the pitch. If someone pitches an idea, but clearly has no idea what makes them better, and has just as clearly never even thought about it, it tells you a lot.
[+] ccarpenterg|15 years ago|reply
Often you assume your customer is the same as you - sees the problem the same way, wants to solve it your way, and wants to pay for it. But you're explicitly not like your customers; for one thing, you have enough initiative and insight to quit your job to start a company. It's easy to let your idiosyncratic preconceptions prevent you from observing what the larger market will accept.

I think that's a corporate perspective to review a startup pitch. In a startup you're iterating and evolving your idea but you have some start point and perhaps it's your 'idiosyncratic preconceptions'.

[+] AlexBlom|15 years ago|reply
At the very least you need to have the idea confirmed and ensure the problem exists outside of your entrepreneurial vision.
[+] mrtron|15 years ago|reply
Very accurate - I think this is a must read for anyone embarking on a new startup.

I see a lot of these issues all the time, but sifting these out and articulating them this concisely is very difficult.

I can also see these issues created the biggest challenges in previous projects I have worked on.

[+] jpastika|15 years ago|reply
Very well stated Jason. I think your opinion on "Pretending your faults don't exist" is especially spot on. Programmers, myself included, can sometimes become so attached to a feature or coding approach that any criticism, warranted or not, becomes a personal attack. I also think it has become way to acceptable to say "no" to customers. Rather than the constructive reasoning behind saying no, often times arrogance or even self consciousness leads to pretending faults do not exist. For this reason it is always helpful to have a trusted source for non-programmer feedback.
[+] Scott_MacGregor|15 years ago|reply
I'm looking forward to "positioning against the competition". I think this is something a lot of startups will find useful. Many people have good ideas, but when it comes right down to it, it's a dog-eat-dog world, and the cash flows from the customer/users opinion of your offering weighed against the competition. You can iterate all day long, but to take home the money you need to be more attractive than the others out there. That takes a well thought out plan.