A presentation on the key characteristics of a fundable startup and the ways founders should pitch their company (and how they should not do it).

1. What startups should worry about
Philipp Moehring
Principal
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We see a lot of startups
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We work with a lot of startups
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We know what founders...
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are proud of
are excited about
like to spend time on
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Also what they...
dismiss as unimportant
try to hide but can’t
worry about
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What’s important?
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Founders are constrained by
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Time
&
Money
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Time will always be scarce
Money is accessible when things go well
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Solution:
Be faster!
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Naval Ravikant
"People spend a surprising amount of
time on things that will contribute little or
no value to getting them to a seed round"
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What you should
actually
worry about
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What makes a fundable startup?
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1. Traction - Customers and users
2. Team - You and your people
3. Product - MVP or more
4. Social Proof - From other investors & advisors
5. Pitch/Presentation - Talking about the right things
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Show traction. Any traction.
We don’t expect:
We have 2 million in recurring revenue.
We have 200.000 paid downloads for £ 20 each
This might be good:
We have 5 customers who use our product across the company
200 beta testers have invited more than 40 people each.
An investment offer from our first trial customer.
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Explain why your team is special
Bad:
We are all really smart. Look at this joke I made. You’re going
to love us. Also, Tim Ferris is my Idol.
Good:
We’ve been working for the industry leader for 3 years. All of
us learned to code, and built the prototype in 2 months.
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Build a product. Even a small one.
Bad:
You have no technical cofounder
You “just need money to build this”
You haven’t even hacked together a prototype
Good:
A basic prototype (even paper or email) someone uses
A beautiful, but simple first version
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Social proof is a forcing function
Bad:
An “angel investor” owns 65% of the business.
We’re using our previous employers’ IP and code
Good:
We’re building an email startup. Paul Buchheit is an advisor.
I convinced 2 facebook cofounders to quit and work with me
(not the Vinklevoss Twins)
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Pitch: Work on your description
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Transferwise is a Seedcamp company
Bad:
We are a a B2C and B2B peer to peer FX platform
matching mid market rates across the EMEA market.
Good:
We are the cheapest and easiest way to exchange currency.
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Pitch: show market numbers
Bad:
The FX industry is 45 trillion dollars big*. If we just take 1%, we
are rich.
Good:
There are < 2m UK residents who send more than £ 1.000 to
Europe each month. We can save them £ 50 per transaction.
18* I made this up for the presentation
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Some more best practices
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Build a process
Reach out
Make a first meeting count
Follow up professionally and fast
Drive decision as much as you can
Don’t lean back and wait
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Make a market
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Test drive the pitch
Understand the investor (!)
Pitch investors simultaneously
Find a lead early and treat them well
Leverage commitments
Use the right tools
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Grow internationally
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Be international - show potential
Travel international - be top of mind
Hire international - build a first class team
Partner international - more customers and co value
Fundraise international - better investors, money, exits
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CLOSE and get back to work!
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