Hello, everyone, I'm Jordan Crook. And I'm very, very excited to get started on our next session. I'm joined today by Melissa Bradley, Melissa and I've talked many times, I've covered her startups, she's also been to a bunch of TechCrunch events. She is the co founder of Ureeka, which is this really cool platform for connecting small business founders with experts and mentors, which makes her perfect for this event. She's also a partner at 1863 ventures. So she's an ambassador, as well. And she's a professor of Business at Georgetown, Georgetown University's Business School. So she wears many, many hats. We're very, very lucky to have her here, Melissa, how are you doing today?
I'm doing awesome. Very excited to be here. Thank you.
Thank you so much for making the time. So I'm gonna throw it to Melissa. But before I do, I just want to remind our audience that a big chunk of this session is dedicated to your questions. So please do use the slideshow, use chat, get your questions up in the hop in some way, shape, or form, there'll be passed along to us. And we'll make sure that Melissa can answer as many of them as possible. And with that, I'm gonna pass it to Melissa to talk about how to nail your virtual pitch meeting a Shut up, you take it away, Melissa. Awesome. Well, thank
you and really excited. And I am happy to have these slides and also have some insight, real live insight, I did six investor calls with entrepreneurs over the past day and a half. So even have some up to date information to be able to help. But we recognize that even if in the midst of COVID, we still all need to raise money. And the good thing is, is that I think investors have adopted and pivot very quickly. And I would say relatively, nimbly to how to best use virtual pitching, whether it's zoom or hopping or something else, to make sure that we're still here to be able to meet the needs of entrepreneurs. As Jordan mentioned, I have one role, which is or one goal, I should say, which is help as many entrepreneurs raise money and be successful, and many roles. And so I'm going to be presenting this, both from an investment perspective based on me hearing lots of pitches lately, but also as co founder of Ureeka, as we are currently in our next race and have been doing lots of zoom calls ourselves with investors and kind of sharing some of our key key takeaways and what successes. So there's a few areas that I want to cover today. One I want to just delete is introduction about myself, I want to talk about what I think has changed in the pitching environment. Talk about some very concrete things around your presentation, and that style, and then talk about what's how some of the content that is expected as changes and then offer you a prep checklist. So they have something to take away from all of this. So hopefully this becomes helpful to you. The first thing is to talk about the new environment. You know, the beauty of zoom, in some cases that I think many of us are working harder, and probably spending more time on video. But what has done for investors has given them more time and focus. You know, they don't have a line full of people out the door for the next presentations. But I would say many of them have learned to better pace their time and read and be prepared before people show up and really be dialed in and zoomed in when you're making a presentation and then creating time afterwards to really talk about it. And so I would say you're finding more time than just three minute or five minute pitches, but really a conversation. And so the first thing I would say is you want to be prepared to go deep into the operations of a business, I would say the upside is that Gone are the days of the three five minute pitch and you keep your fingers crossed and you pray that the investors are going to ask you a bunch of questions, when indeed as I would recommend sending an overview or brief in advance of your call. So there's some kind of one page or a fact sheet or some background that at least gives a high level structure to what your business is. And so therefore, when you're going through your deck during that meeting, which could be anywhere between 3545 or 60 minutes, you have a chance to really go deep then in some cases, you are pre emptive in your presentation and being able to answer their questions. And recognizing that whatever time you have a lot of I recommend 1/3 of that time should be spent on presentation. And two thirds should be spent on questions and a chance for them to really hear from you. And really get a sense that you are the appropriate leader or a part of a leadership team to lead this company. But what's important to know is that venture capitals or at least myself, and particularly when I see anyone's financials, I probably discount them about 20% right off the bat. And I'm not so much looking at the numbers, but I'm looking to really understand what are your strategies, what is the infrastructure, who is the team that's going to drive you to that performance, and to really want to go deep into the day to day and the execution and the strategies and the leadership team. So that's really important for the box number one here. The second is that again, because you have more time a deck is a guide, not the entire story. So please do not put everything in the deck and do not try to put everything on one slide. But really use it as a guide to help you have a conversation. I think being conversational in tone less stoic, less formal in that presentation is really important and so everything should not be crammed in the deck but really high lights to then allow you to fill in the gaps and really create a smooth and well paced story for your investors. And then the other thing is, you know, consider whether or not you want to do a pitch and or a demo, or both. What I would say is the demo was that even in the world of zoom, and all these others and happen wherever else, technology is still highly imperfect. So if you want to do a demo, make sure that you have practice it several times over. And in some cases, what we have done is we have balanced at Ureeka, between doing live demos, but also sharing recorded demos, as well. And so kind of putting them on Play and walking them through so that I can focus on telling the story, I can make sure that there's no flaws in the demo. And then obviously giving them a chance to play around with the technology themselves thereafter. But I think those are some important things to think about in this new environment that again, go on to the days of quick pitches and zooming through. But now is the time to really have a conversation and deeply engage the investor in your story in your vision, and really understanding what the product or service is. Some of the things that again, as we talk about how you're showing up in this world of pitching, I would say one is that it's conversational in nature, but still formality and tone. So you want to be respectful, you want to avoid jargon, you want to make sure it's clear what you're talking about. But it's really conversational in nature, it is much more of a two way conversation that we've probably seen before. I think again, pace yourself be really clear in advance how much time you have. And again, split it up 1/3 presenting two thirds being prepared to ask questions and really have that conversation. So pace yourself, you know, don't rush through, if you only have 30 minutes is probably not the best time to do a demo, you might want to follow up with a recorded demo or make an offer to do a demo afterwards. But really just make sure you're clear on how much time you have. The other thing is focus on a few key things, you know, what investors really care about? And particularly speaking from the entrepreneur side is not just the money we're making, but how do we make it? And what are the things that we have learned post COVID that allow us to have confidence in what our projections are, the beauty about financials is that they're nothing but a set of projections. And so you want to make sure and really build confidence in the investors mind that you understand how to get those two projections, more than likely all of us at some point in time are going to fall short on those projections. So the investor wants to make sure that you have a really good handle on what is the strategy? How can you pivot quickly, how can you recover? Those are going to be really important things. I would say I know myself my whole new wardrobe, since we've gotten to COVID, which is black t shirts every day, in part because at least they're clean. They look good, it's pretty standard is by uniform. Now, I'm not going to say that you have to wear a T shirt or you or you have to wear a suit. But dress professionally. You know, if you have a logo t shirt, that's great or put on a collared shirt. But all I would say is don't show up in your PJs. And if you have peaches in the bottom that please don't stand up. I had that happen with an entrepreneur, they was like wait, I'll be right back. And I was like, Oh, cute, cute. It was like a little Looney Tunes PJ's, and it lended for good conversation. But we took made a joke out of it. But you know, you just don't want to make those kinds of errors. The other thing obviously, is depending on what your home life is, if you got dogs, if you got neighbors, if you got roommates, just let them know, like this is a time I really need to be dialed in and focus. And the final thing is, you know, again, I would argue we're probably all working way harder now than we have before. And so make sure you pace yourself, not just in your presentation. But in preparing for it. If you have a presentation at one o'clock, for example, getting prepared for this, I made sure I 20 minutes in advance, just to take some water walk around clear my mind not be focused on the last phone call I had and not trying to think about the rest of things I have to do today. So you really want to take time to dial in. If that means standing and taking the call great. If that means walking around your house or outside or doing a little jog in place, whatever it is, you want to come to this as energized as possible. Because what's going to really resonate is your passion, not just reading a bunch of bullets off of a slide. And then when it comes to some of the content in terms of what that conversation lead to, these are some of the things that we find. Investors are asking us and I'm asking entrepreneurs, one is COVID has thrown us all for a loop now, believe it or not, it's been a year. And so really want to understand, and I would say probably 20 to 30% of the conversation is gonna matter what have you learned? Because we're not sure what the future is going to hold? We have no idea what the world's gonna look like if we're fully vaccinated or near being vaccinated. And so you really want to talk about not just the immediate steps you've made, but what you've learned. What did you do that worked? What did you do and you completely fell on your face? That's extremely important so that we as investors can get a sense that you have learned something, that you've tested some things and you have some level of clarity about 80 85% clarity and where you want to move forward in light of COVID. But you want to be also transparent. What did you learn what worked, what didn't work, it's going to be important that you're able to demonstrate that there's an element of reflection in your leadership style, because again, stuffs gonna go wrong and investors want to know that you're going to be transparent about what went wrong. Be you're going to be reflecting about what's wrong, and most important, you're gonna have a solution on how to fix it. So again, being able to demonstrate that skill set and that leadership ability is going to be extremely important. As a finance major, I consistently, this is my phrase, know your numbers, and not just Well, we're going to have a net profit of 1.2 million, that's a 35% increase, but no the inputs, know how you get there know how they can change, if you begin to pull levers, I always say that a company should think about the three to five key levers that it has to pull on a regular basis to generate growth and scale. Some of that could be customer acquisition. Some of that could be infrastructure, some of that could be team, some of that could be your marketing plan, whatever it is, and really know that when I pull each of those levers, if I pull the marketing lever and put more in Facebook ads, or ID or Twitter, what does that do to my infrastructure? What does that do to my team? And so it's knowing your numbers, but not in a static sense, knowing that based on strategies, how do they change? How do they fluctuate? What do they look like before COVID? What it look like post COVID? And more importantly, what are you projecting or predicting for the next six to 18 months? And why? What are you the assumptions, you're making both a bunch of customer and about the market opportunity. And then market opportunity really leads me to something that hasn't changed with her word COVID? Or not? Which is, what is your competitive advantage? And how do you sustain it? You know, we see all the stats that a lot of businesses have closed during COVID. But we also know with any recession, it is a boom time for entrepreneurs is a lot new companies coming on board, there's a lot of new players entering. And so you want to make sure that you're on top of it. And it's not just that slide of like, Here I am, here's my competitors, look at all the x's that I have, look at all the x's they don't have. But it's really understanding not just how you're different, but how you're going to sustain that competitive advantage over time. Is it your long term value to customers? Is it your marketing strategy? Is it your some kind of patented process? Is it the ability that you're solving a friction point faster? Whatever it is, but really be able to talk about how that gets sustained? How much that cost to sustain? And what is that ultimately doing to your margins at the end of the story. So that's extremely important. And then probably less what you had free COVID but really now is understanding your customer acquisition strategy. We are all home, we are all bombarded by all kinds of things on our phones and our desktops. And so where investors are really drilling down and we Ureeka really refined This is what is our social media strategy? How are the channels working? What are the channels working best? What are the economics of use of those channels? How is our pricing changed at Ureeka? We decided that when COVID hit, we wouldn't charge anybody? Well, that was a big hit. And luckily, our initial investors were all on board. But as we're now going out and talking to other investors, they want to know, okay, that year free was great. When are you going to start making even more money? And what does that look like? And being mindful and balancing that we all have the fiduciary responsibility to create a successful, profitable, scalable company, but we can't do that at the expense of our customers who many are suffering and struggling right now? So being mindful of what you did before COVID? And your pricing strategy? What are some of the changes you've made? Are you making some discounts? Are you ramping up? Have you even changed your your financial model? That's going to be really important. And then conversion has always been important. But understanding what has changed in that time duration? What is changing that cost? What are you learning around the tipping point for conversion, and then obviously, really understanding customer service and support. One of the things I think regardless of what industry you're in, is because people are home, they have a lot more time to be critical. And so making sure that customer service and support is not just responding to the bad things, but really figuring out how can you engage your customers in your ongoing growth strategy? How do you get positive feedbacks? How do you create referral programs? How do you support your customers and actually helping you generate more revenue and more traction in the market? And then of course, also, how do you have customer service and support to be able to manage your ideally, increase in sales? Your job as a CEO, and as a founder is not to always manage all the little things? And so how are you really creating a scalable infrastructure, so that you as a CEO can focus on revenue generation, you can focus on sales, you can focus on customer acquisition. And that's something that oftentimes we don't talk about, when you're raising money, we clearly care about the historical nature of what you accomplished. But we're much more focused on that use of funds and not just what percentage goes to marketing and what percentage goes to staff. But really, what are the strategies that these people are going to be employing who develop them? How will they be monitored? How will they pivot? And the last thing I'll say is and who else is on that team. If you're out here raising money, I would say even more so now you have investors who are stepping up and wanting to have board seats and wanting to be involved in not just in advisory are non voting positions. And so being thoughtful in not just pitching to as many people as possible, but really identifying who are the best people that you want to have on your team and on your cap table to really help drive this home. And so we think about how to get ready. I think one is being reflected, which I've talked about before, and really take the time to say what are the top two to four things I want to get across to this investor, then that brings me to something that's really important, not all VCs are the same. Therefore, your presentation should not be the same. You should have a unique deck for every single venture capitalist that you talk to, because all of them are different. All of them have different priorities and focus in is up to you to do your homework in advance. So it's not one size fits all, because that's not the case. So really be reflective, not only in what you're going to talk about and what your priorities are, we reflective and do your homework to figure out are the priorities that you want to share align with what that investor actually cares about. So that's a big step. And I would say, again, you know, you have more time prepare, I think we all hopefully have better control of our schedules. So you're not running up and down Sand Hill Road meeting, after meeting, but create the space in between to really be zoned in tuned in to that initial investor and what their focus is. The second thing, which I think still stands, hopefully is be honest, this is a time where I will say investors are much more understanding, because I think none of us are walking around with the perfect pivot COVID plan. I think we're learning from each other. And so be honest about what worked, be honest about what didn't work. Be honest around what was the impetus for your underlying assumptions? And how did you know you went wrong? Because the reality is, we're all gonna make mistakes, once we raise money, the critical thing is, are we able to demonstrate and build faith and confidence in the investors that we have a mechanism by which we're checking in, we have a mechanism where we're transparent, and what's working, what's not working, we have a systemic process, whether it's with staff, or with partners or with our boards, to say this didn't work, I sure can welcome some help, and how to really course correct this and make this right. I've said this before, but this is really about conversation and content. I know there's still tons of pitch competitions happening all over. But I would say when you get to a point of having a one on one conversation, you or your team, with an investor, this is really around less about let me run to the deck. But let me really give some depth and context on why you think your company deserves this investment and why you are the best company be part of their portfolio. And with that said, I would say that, you know, again, the allocation of time is 1/3. conversation, two thirds, q&a, but also making sure that you're taking notes. You know, these conversations are a learning opportunity for both sides. And so it should be conversational in tone, less pitching, but conversations not that you're pushing and driving your own agenda, but you're listening to the investor and taking notes on what you could be doing better. And where you can improve. Rest, assure the investor community is extremely, extremely small. We all know each other, we all compare notes, certainly zoom are all showing up at different events. And so you want to be consistent. And you want to make sure that you're always working to improve your pitches as you move forward. Depending on the sector that you're in, it's always helpful of sending that brief first, so that there are some grounding and context about the company, using the investor conversation to really bring home and bring some depth and texture to what you're doing. And then being able to have a follow up and sharing some case studies, either the case studies or in customers that demonstrate your marketing strategies, your customer acquisition strategies, maybe case studies on your own postmortem reflections on what you did when COVID happened and what worked and what didn't work. But something there's just again, goes to demonstrate your leadership skills and the strategies you have to really go and grow this company. And then obviously, in addition to following up with the deck, giving any other data requested. And certainly before you end the call recapping what are the next steps, the last thing you want to do is get off of a zoom call and say I think that went well. But I'm not sure what I'm supposed to do next. And so really make sure that you have time at the end to not just say thank you, but have clarity on what happens. What is their process? What do you need to do? When do you need to check in again, when will you expect to hear from them? What else do they need? Make sure you understand not just the next steps like right after this meeting, but what is the process for them to get to a Yes, so that you can balance your time because at any point in time, when people are raising it, entrepreneurs can be talking to anywhere between seven to 12 investors maybe even more. And so again, you want to take note, you want to have your own grid and your own internal systems to track and make sure that you're following up and delivering. And then I think the biggest thing, before I add some more tips is focus on business momentum. You know, it's COVID and we've all had a heck of a time and at some point in time, I'm sure We've all struggled. And there's nothing wrong with that you want to be honest about that, but focused on what are the two to three things that you've learned that you really feel good about. And that is going to really drive the momentum to carry it forward for the rest of 2021. And then continue to build momentum for the subsequent two to three years. And so you want to make sure that you end on a high note you want to talk about and reflect on what you've learned, what worked, what didn't work, you want to talk about where you're going, and what are the strategy you're seeking money for. And then you really want to end on a high note that if I get this investment, this is where I want to go, or even without the investment, this is where I'm headed. And this is why would make you'd be a great partner. So those things are going to be really important. So other tips that I want to share, that are really now based on conversation I've just had for the past couple of days is that, you know, one presenting is a full body experience. So I'm sitting down now, but sometimes I like to get up, I like to stand up, it helps me feel engage. And so make sure that it doesn't feel like you're reading them some bedtime story, but that you're actively engaged, and you're excited, and you're passionate. The other thing is we talked about the deck and we talked about a demo. In your deck, though, use diagrams, you know, we all have shorthanded in our minds as an entrepreneur, everything is extremely close to clear on how it works. But make sure that you use visuals where you can, I know I didn't do a good job of that, because I wanted to leave you with some talking points. But don't just make them text heavy. Show them how your internal systems work, show them how a sales channel works, show them how your team has a feedback loop around customer service, it just really makes the story pop. And again, remember, once you've finished pitching, this deck is probably going to be seen by at least three to five other people and your soundtrack won't be there. So you want to make sure that when the VCs are taking notes, that there's not going to just be relying on what's on the slide in printed text, but they can actually see what's happening in the country and have some of your systems come to life and some of your strategies come to life. So that's also extremely important. The other piece I would say is, you know, all statements at some point in time should have some numbers, right. venture capitalists and other types of investors are looking to make decisions based on quantitative outputs and outcomes. And so for you to say I expect to increase my sales over the next six months. Well, that's cool, but rather say expect to increase my sales by 35%, over the next six months by doing these three things. And really making a tactical, tactical, intangible is going to be extremely important. And I have seen a lot of pitches lately is is there lots of competitions coming up. And people just tell me all about their ambitions, but they're non quantitative in nature. And what you have to remember is that as an investor, this is a competitive process. And it's less about you, it's just I have to decide with the limited funds I have, who are the people that I want in my portfolio, because I have to return this money to my LPs. And so I want to bet on people who are accurate, and specific in terms of what they're delivering. And so the more that you can be concrete in your numbers and what you're going to deliver, whether it's financial numbers, or growth numbers or staffing numbers, that's going to be really important to make sure that you are indeed specific, I cannot emphasize enough take notes. Because again, this is a learning process. If you're lucky, you're probably going to have at least two to three conversation with the investors. And the last thing you want to do is show up and have them asking you the same exact questions as before, and you mind demonstrating that you listened, you know, part of an investor, your job is not just what are you going to do with the money, but how are they going to interact with you. And that's at a whole portfolio management phase. And so your ability to take notes and show up at subsequent meetings well prepared and being reflective on what was shared to you, and demonstrating that you are coachable. And that you take feedback is going to be extremely important. So I cannot overemphasize enough. taking those notes. In many cases, you know, if you're the founder, or you have a co founder, you know, technology can be a little quirky. But I would say if you've got a strong team bring the strongest with you show that you have people with you. And this is not a solo journey, because it just helps to build confidence. And it helps to show that you can move as fast as you said, you can because you have a team around you. And that team can include your staff, that team can include your advisors, it could include existing board members. But the most important thing is that you get to invite them, make sure they show up well make sure they are reflective, they are honest, they know what they're talking about. They're excited, they're enthusiastic, they're helping to build momentum. But feel free to bring other people if you think they're going to bring positive value to your overall presentation. The other thing I would say is reminding you that show up early, you know we're all running in between. So take that break, take that time before and show up, you know, 1015 minutes early, just to make sure that you're set, that you're not playing around with any tech issues. You've got the right background, if you care about room Raider, you're good that your slides work, but try everything out as soon as possible. Just so that you have a smooth process. You're not caught up in tech glitches which we all can make sure you stay unmuted and all those kinds of things. And the final thing that I would say Is have fun. I know that's hard. It's extremely, extremely nerve wracking to go ask for money. And so whether it's you're asking from your parents, from your friends, and certainly from a bunch of strangers, but have fun. At the end of the day, you are an entrepreneur, you started this company, because you had a passion, you had a belief, you were really excited you believed in what you're doing, and let that show through. Don't panic, this is your chance to shine. Sure, you may get some negative feedback, you may get some criticism, you probably get lots of hard questions. But it's not in the vein of trying to knock you down. It's in the vein of really trying to understand the business. So I encourage you to take a swig of water, water only. Take a deep breath and enjoy, enjoy the ride. Because what investors do look for is your personality and your persistence. And you want that to come across on screen. So don't show up stoic. Don't pretend like you're Fred Flintstone living in the Stone Age, have fun, be engaged, be conversational, and hopefully, you'll get the financial results that you need. So I hope these tips have been helpful. And I'm even more excited to take questions and get some real life examples, if I can be helpful
was, I am at once not surprised at all, because I know how insightful you can be. And at the same time completely blown away at just how much ground you are able to cover in such a short time. So thank you again, we do have bunch of questions coming in. So I'm just gonna start rattling them off,
follow my own rule and take some notes.
I can take some notes. Yeah, get those notes go. And I also love I have to say the comment about like, what levers you can pull and what you believe the results will be like, I feel like that's something that's missed so often is the variables, not just your one plan, but all the variables involved in it. And that's just so sexy. I feel like to an investor.
That would be sexy. I love it, Jordan. But I would say just to double up on that, I think that I would always have made that suggestion before to entrepreneurs that are pitching but I think it's so much more important now. Because let's be clear, none of us could have predicted COVID. And so yes, there is a solace, dare I say in market disruption, becoming almost a semi new normal. And so then what is required of a CEO or founder is your ability to be responsive to change that we can no longer predict, which I think is scary. But I think also hugely opportunistic to create new models that allow entrepreneurs to be creative and to be adventurous and to be innovative, which I think is exciting to investors.
Absolutely. Okay, so this question came in anonymously, does humor work in a pitch story?
Let me say this, if it's appropriate, first and foremost, you know, I think if you're able to do your homework, and it's light, its airy, and it doesn't run the risk of being risky or offensive, then then absolutely. But it should also be contextual. I don't encourage people to be funny just for the sake of being funny. But I think if there's something funny that has happened in the, in the concept of running the company, I think if something's funny has happened in a customer action or partnership interaction, that by all means, share it, I think humor helps lighten the load on both sides. And it certainly plays into what I say, which is have fun.
Yeah, and showing your personality. If you are a funny person, and you kind of do bring that then you should definitely lean into that
is Lorenzo, our rating when you're doing it. That's how I
draw the line. I'm Lorenzo Rubio asked from a VCs perspective when dealing with new IP and early stage technology startups. Are you ever put off or do you dislike signing NDA is prior to any combos? I think I know where this is headed.
Yeah, I mean, you know, usually we don't sign NDA is on the investor side. And I think it's just because one is time consuming, too. I view it is you're not starting off on the right foot. You already don't trust me. And three, you know, I'm probably a rare example. But most investors also are entrepreneurs, they're not mining the field to try to take other people's stuff. So I would say, you know, your first conversation, you probably should not ask for one, it just be a general conversation high level, what are your strategies? I think if you truly have some IP, and you're talking to a firm that may have some similar applications or similar uses, before you unlock the trade secrets, and I think it's fair to ask for an NDA. No, they still may say no, but I definitely you know, that's not not a first date mode. That is there some real interest they want to dig under the hood. You know, if you have some concern, I think it's something you want to have a conversation about, not just email to them and say, Hey, can you sign this, and then I think they may be open to it.
I think it's also worth remembering. It's a trust building process, going into pitching and getting investment. So by being cagey off the bat here, you know, you're kind of hampering, you have to be vulnerable in order to earn trust, not only trust someone else.
You know, I've had a couple of conversations with someone and I hear their concern that I have already invested in some similar companies. And you know, I don't mind it as long as it's not like a 20 page NDA. But the point I feel like we're going down a path where it's Not just I'm doing it because the entrepreneur is scared is going to be beneficial to me able to protect myself but be I really want to dig in and ask some really hard questions. And I want to build trust to that I'm asking those questions in the vein of trying to make an investment.
Exactly. Shane Walsh asks, Do you knock a founder for incorporated as the kind of seller incorporating copyrighted materials in a pitch deck or video, they're being used for demonstration purposes. So I think he means like, information is proprietary and confidential, you know that you see that on some decks?
I mean, I'm not turned off by it. It's become a pretty standard tagline. I mean, but I don't know if it is required. I mean, I think No, I think what's happened, again, post COVID, is that, you know, there's more time to help build context, the deck. So I don't know that you need all those disclaimers? I mean, you certainly wouldn't want to indicate your sources, if you're taking it from somewhere else for comparable purposes. But I think, you know, in the nature of the conversation, you have a chance to surface all that. So I don't see that as a big deal.
JOHN debulking asked, What about for pre revenue companies? What, if anything, changes in terms of content and approach? It's a
great question. I mean, I think, you know, obviously, you're you're finding your star quick, angels are non existent. But I'm not sure that much changes, I would say, in some cases, the bar maybe a little bit higher, because there is no precedent for the investor to really base your assumptions on. So I would say, the areas of the levers where the bar is higher, really understanding team and their past capacity and generating results now comes I think, really probably spending a little bit more time in the marketing strategy and customer segmentation and customer acquisition strategy, so that when we do see your financial projections, we can get some faith that those numbers are accurate. I think if there's any past precedent, and other companies or other experiences that speak to your skill set to be able to really turn on and marketing machine will be extremely helpful. And then obviously, certainly understanding comparables in the market. So I think really, probably that 1/3 of your time, at least half of it on what is your customer acquisition strategy? And what is the precedent, or testing or piloting you've done that gives me faith that it's actually going to happen.
Yeah, I love that. Here's a question that came in anonymously, if you have any recommendations for minority founders on what special thing they should do in pitching to a majority VC?
Well, that's the story of my life. So I would say, three quick things. One, be yourself. I don't think there's anything you should do there, really, I think you are no less of a founder than anyone else, you are no less of a founder than your most no top two. And you should show up in your full power, and your full presence and your full capacity and expertise. As a founder and a CEO. I think you know, that's the first thing on your space on your leadership on your company. I think the second thing is everything else applies in terms of what you send in advance and how you present. So I don't think anything changes there, I think the only nuances and something that we have Ureeka is that our platform is for everybody, that we have made an intentional focus on women and entrepreneurs of color as members and really serving an underserved and overlooked community. If you are a person of color, or a woman, and your primary audience is not who the investor is, then make sure you've built enough time to demonstrate both your expertise of the customer segment that you're going after, and be able to articulate to them how those customers are going to be acquired. Now, I find that in many of the conversations, our investors are thrilled to know that we have a general market acquisition strategy. And so they get that when we talk about what's your acquisition strategy, women entrepreneurs of color, it just takes them more time to understand because it's not their norm. So I think being really clear around segmenting markets and how you're going to capture that, because it's not necessarily what every, you know, white male investor is looking at making sure that you're creating enough time and space to educate them. I don't know this, really, I don't start from a place. They're skeptical. I just started to say we're a unique part of their portfolio, we've got to help ramp them up and get them up to speed on our core competency and going after those segments.
So we have one question that came in early on, can you provide some specific recommendations on how to connect with VCs? How do you get that first meeting, and I will say one way to do it, is to hop on TechCrunch match here at early stage. And schedule one. I actually just talked to a VC recently who is in a meeting right now as we speak with a startup founder. So they're here. They want to hear from you. But go ahead and let us know you take it away.
All right, I think you have to get a great response. I think you've got to use trusted parties, right? I think you know, we all know, I used to work at large VC firms. cold calls are not the best way, you're probably going to be at the bottom of the totem pole. So I think one look for resources like Jordan just named and others where they are creating spaces or creating opportunities for entrepreneurs, we met with investors. I think the second thing is if you have board members or advisory board members or people who are mentoring you and they have relationships, help them help leverage their social capital to get to his introductions. The one thing that I always encourage people is even if it's somebody else who's making the reduction, talk to your peers, talk to other entrepreneurs and figure out who they have good experiences with. Who would they recommend? I think You know, all of us have entrepreneurs at some point in time, but let's just say we have a list of 20 VCs. And that's probably not even all we talked to, probably only half of them are going to be interested in your business, right? The other half was just kind of good prospecting calls. So I always take notes and say, Hey, this wasn't a good fit for us. But then one of my friends who's doing this kind of company, like doing a SaaS company or doing AI, this is the perfect place. And so I think part of that is, you know, you seeking referrals, but you also being referral for others to be able to provide that insight. And then, of course, it's not my preferred tack, but you know, there's tons of lists, you know, you can go on pitchbook, and use all those resources. But again, I think, anywhere you're pulling a generic list where you can add some context that somebody can provide some insight on that investor is extremely important. And obviously, a personal reduction always goes a long way than just a cold outreach email.
Now, we also have the TechCrunch list too, which is based on founder recommendations, good resources. Well,
that's because the founders know, right? I mean, I think, you know, everybody reviewing them, right? Everybody's got lists these days. Right? And and, you know, there's, there's all kinds of things where I saw I can't remember the names, but like, they were grading investors, like, how cool were they? How amenable were they how hard were they? And I think those are just inputs, for you to make the decision on how to narrow down your list of investors. But I think, again, trusted sources where fellow entrepreneurs have been able to weigh in is probably the best resource, because that's the same role you're going to show up in
now. 100%, Melissa had a question that I thought was pretty, pretty insightful. Or maybe it could be very useful. She also said the content was invaluable. So good on you, Melissa. I'm not surprised. Just wondering if Melissa can elaborate on what goes into the initial brief because we talked about kind of sending that pre material than the deck and then taking notes on follow up what is what is that initial material look like? If not a day? Yeah.
So there's, there's probably five elements that I put in there. And there's no rhyme or reason in terms of what it looks like, we typically just do a demo. But we talk a little bit about we start with where we are right now, like what have we achieved to date, we then talk about our mission and how we got started. We then talk about the team, and who's on the team, both from a staffing perspective and leadership, and then some of our advisory members and some of our investors since we have them. Then we talk about lessons learned since COVID, and pivots and adjustments made in the company. And then we finalize with what we're seeking to raise what we're hoping to do with that round and what kind of investors we're looking for.
Yeah, fantastic. Bonnie also had a question that I think could be useful. She asked if there's any advice for companies that started post COVID. She says we started during COVID. So we don't have like a COVID pivot
story. Yeah. Well, first of all, congratulations for starting and go. But I love it. I think that's okay. I think what you want to say is, what have you learned today? Right? I mean, what you have in your favor, is that you probably started a business at a time when most people like What on earth are you doing? And so I think what I would say is, you know, assuming we get back to a normal, whatever that is, then what are the changes? You know, what is the world? What is your world as an entrepreneur look like when people are fully vaccinated? Does anything change? You know, if you're a tech company, probably not which changes. But if you're a direct to consumer company, maybe things change, because now you're going to start for retail strategy. So I think good for you for doing it. And that's okay. And I would say just, you know, what are the things that you have done in this time of COVID that you think are sustainable over time, whatever postcode it looks like? And what are the lessons, you've learned that you probably want to make changes? Whatever this new normal is we get back to? Yeah, I
totally agree. I think that comes back to the levers conversation, showing that you've done your homework, and you really understand like, I have this prediction of where the world will be in two and a half years, and how that affects my business. But I also have all these levers, right, based on if I'm wrong, because I could be wrong,
right? Absolutely. I mean, that's the beauty of a founder, right? You live in the world of imperfect information, and total lack of guarantees, and what's going to happen. And so in some ways, if you've just started a business and COVID, you to me as an investor in my first takeaway is, wow, you got in pretty quickly to understand what you need to do. And you have figured out how to create a business and probably some of the hardest times, and the most competitive times to kind of get eyeballs and consumers. What if that is sustainable? And more importantly, what if that changes from a cost structure whatever the new normal is? And how do you sustain those relationships?
anonymous question came in our solo founder pitches different.
I'm not sure they're really much different. I mean, I will say it's interesting. I've looked at invest, I'm sorry, look at CEOs who have teams, and they're still showing up. So I think, as a solo founder, I think the information is required. I think, where the deeper dive for the investor is going to be is how will you pull up your big, hairy audacious goals as a solo founder? What is the next hire, that's going to be a critical thing? Who is the next person you're going to hire to help you get on this scalable process? They're really going to drill down on that. I think they're also going to know who else is on your team, even if they're not staff? Do you have advisors? Do you have mentors? Do you have coaches? What are the plan for an advisory board? What is the plan for a board? You know, nothing wrong with solo founders, but let's be clear, we all can't do everything and so I think really be able to clear be clear on what are your next steps? What is it you can do? What do you need other people Do what is the ordering cadence by which you're going to engage those people? And when do we start to see inflection points each hire that are commensurate with the salary or compensation, you're going to give them so that we understand that we drain for a boost on bottom line earnings.
And we're nearly out of time, but I am going to sneak in one more. I feel like it's an important one. Someone wrote in anonymously and said, I'm a neurodivergent, founder, schizophrenia spectrum. I've told a few investors and they're really supportive, do I tell new investors?
I think that's up to you. I mean, I, you know, I have two children with special needs, add and on the spectrum, and they show up very differently. So I think, you know, again, be honest, and be transparent. I think if you believe that it's going to have an impact on your presentation, then tell them right off the bat, if it's something that you don't think is gonna play into that, then, you know, see how the presentation goes. But at some point in time, I would say disclose that. It may be that you when you send in your company brief and you add something about me, that that maybe is a part of your brief that you add a sixth line this is let me tell you a little bit about me. You know, I think we all from an investment perspective, you're here to support the best possible founders irrespective what they look like, what's going on, where they live, what what what are their health issues or not, what they're managing. And I think in the world of COVID, we know people are managing a lot from just taking care of kids and taking care of parents to general anxiety. So I think there's a greater acceptability of entrepreneurs being vulnerable. But I also don't want people to feel like they have to put themselves out there because you're already opening up your clothes when you make a pitch. So I think you should judge in terms of the entrepreneurs talk uncertain turns investors talk for the entrepreneurs, but I think it might be helpful just to have like a little light about me section and help educate people on what what manifests and they really build trust in you.
Yeah, love it, man. Melissa, it was like snapcraft the pot we got through so much. I
feel like
Yes, I know. was like 40 minutes. What the hell are we gonna talk about you live?
You live your lessons, though. I felt like we were energetic. You hit all of the notes. I'm
so big.
Thank you. big thank you to you a big thank you to everyone who asked questions and tuned in. You guys are amazing. more content where that came from. Stay tuned. All three stages are running. Have a great day and thanks again. Listen. Awesome.