Pitching a startup at a demo day is one thing: getting through a meeting with investors to a ‘yes’ is another. That’s why JFDI has always included detailed criticism from investors through role play and a consistent set of success factors comes shining through, writes David Ongchoco.
This week’s JFDI Accelerate investor role-play session saw 8Capita Partner John Tan sit down with the 2015A founders. This was followed by a debriefing session with John sharing some advice for the founders when it comes to pitching to investors. At the end, John had 6 key pieces of advice.
- Focus on what you are building and what you are trying to solve
John told all the startups to focus on these two things when it comes to their pitches especially when you have limited time. John shared, “When I think about who I approach after demo day, it is the founders who make the most compelling argument on there being a large market, a clear problem and that they have built a product that solves the problem.”
- Be very clear about what your main product is
John emphasized the importance of being clear what your product is and not overwhelming and confusing the investor by talking about too many features. It’s a common problem of an entrepreneur to keep talking about extra features but this only leads to confusing the investor. Focus on your core competency and value proposition.
- Be very clear about what phase you are in
Another key lesson we took away from John was the importance of being clear as to what phase your startup is in. He shared, “Be very clear as to what the features of your product are today and what it will look like a few years from now.”
- 70% of an investment decision boils down to your relationship with the investor
John explained to the founders how investments aren’t made in a vacuum and that the investment process isn’t an overnight one. He explained, “When an investor decides to invest in you or not, I think 70% of it boils down to how much he likes you as the entrepreneur. That relationship is formed in one to one conversations with the investor. Your goal on stage is to make the investor want to come and talk to you.”
- Focus on what you want to solve today but don’t forget the bigger vision
John explained how a lot of investors want to see the potential in the market and the bigger vision. He told the founders, “You’re selling a dream and a vision to the investor. That’s exactly why you’re entrepreneurs.”
- Take the initiative to show metrics and numbers to validate your idea
Finally, John emphasized the importance of backing up assumptions with key metrics and numbers. Show the investor that you’ve done your research and that you have numbers that shows traction in the market.
More than just the advice and feedback they got from John, the founders were able to gain a new perspective on what to do and what not to do by observing the conversations their fellow founders had with John.
Vinay from Lets CatchUp shared with me, “I learned a lot from watching others in the role-play talk with John. When I’m in the meeting, I’m focusing on my own answers but when I’m sitting outside and watching, I get to see the types of questions people are asking and how they answer the questions the investor asks.”
Speaking of the JFDI Accelerate Program, our 2015B Applications are now open. Our mentors, founders and investors form the perfect ecosystem for your startup to succeed in Asia. More than 60% of our Accelerate startups receive seed funding.
David Ongchoco is a content marketing intern for JFDI Asia. He currently studies at the University of Pennsylvania and runs an international nonprofit called YouthHack, which has a goal of helping students learn more about startups, technology and entrepreneurship. He also contributes for top publications like the Huffington Post, Technical.ly Philly and the Philippine Daily Inquirer.