A Female Investor Gives Best Time to Pitch an Investor
Elizabeth Yin, a partner at 500 Startups says, “The best place to pitch an investor is when there is unstructured time”
Photo Credit : iamwire.com,
Elizabeth Yin, a partner at 500 Startups was formerly an entrepreneur and a Googler. Here in her blog, she shares her experience being pitched startup ideas. Main takeaway: Investors are humans too and are easier to persuade when they are enjoying some free time.
From Elizabeth’s blog:
When is the best time to pitch an investor?
I was moderating a VC panel a couple of weeks back, and we talked about the best way to get an investor’s attention. One of the panelists said, “Well, the worst way is to bombard me at an event.” And the more I thought about it, the more I disagree.
When I was an entrepreneur, I don’t think I had any sense just how busy most investors are. I guess I just thought they all sit in cushy chairs all day and sip tea and hang out at the Rosewood on Sand Hill. (ok, maybe some investors do)
But certainly new VCs are not doing this. They have to hustle for every deal. They have to hustle to fundraise for their current or next fund. So how do you get on an investor’s radar?
Here’s a snapshot of my day-in-a-life:
-I average 6-10 meetings per day (typically 20-30 min mtgs); incl both mtgs with current and future portfolio cos [companies]
-I block off 4+ hours a day for emailing with founders
-I do roadshow events / speak at conferences on average 2-5 days per mo on the road, 1 day locally
- Right now, my work inbox has
80 important unanswered emails
276 back-and-forth email threads with prospective founders
1500+ emails that will just never even get opened because the subject line isn’t interesting
My personal inbox isn’t any better unfortunately.
This isn’t to say, “Oh I’m so busy / I’m holier or more important than thou”. But, I’m trying to paint a picture of what channels are too competitive to get attention in and which channels have opportunities. I imagine that this is similar for many other investors.
Based off this, if I were pitching myself, here are some takeaways:
1. The best place to pitch an investor is when there is unstructured time
If you are at a conference or an event, investors actually have a LOT of downtime. They have blocked on their calendars to be at an event for x amount of time. But, aside from their speaking slot or panel or whatnot, they are more or less available!
Now, a lot of investors don’t stay for the whole event, but if they are speaking, you can bet they will show up for that part at least. And, so your opportunity is to find them before or after their talks. Have you ever seen an investor on his/her phone emailing or texting people in the corner of a room? That is your opportunity to jump in and do an elevator pitch. Be polite / friendly, and you won’t be interrupting.
A strong elevator pitch will cover something unique about you/your story/any KPIs or metrics you may have/why what you’re doing is important. Most elevator pitches are really weak. In part, it’s because they all sound the same and often are too long or rambly. Also, an elevator pitch does not mean you just talk at someone. An elevator pitch is a dialogue, but it’s a short one where you need to cover enough interesting points in order to get a meeting. If the investor is intrigued, you may end up having a much longer conversation at the conference itself. My longest conversations with entrepreneurs have been at events, and many of the portfolio companies I’ve championed over the last two years have been startups I’ve met at events.
Make sure that there is a strong next step after meeting with an investor. A weak next step is “Email me.” You don’t want to end up in someone’s inbox. A strong next step is a confirmed meeting — it could be at a specific time at the event itself or later on. But, it should be locked down or at least you should be in touch with an investor’s EA.
2. Cutting through an email inbox is tough
Everyone’s inboxes are busy. But if you must go the email-route, here’s how.
In some ways, this is why people say strong referrals are a great way to meet with investors. This is true — if the referral is really strong. But most of the time, referrals are weak or are just ok. For example, people I’ve met once or twice before do not make good referrals for me. You’re much better off emailing cold. Furthermore, there are even some people’s referrals who are negative signaling to me! On the flip side, there are some fellow investors’ referrals I would hop on immediately. The issue, as an entrepreneur, is that you don’t know where your mutual connection lies in an investor’s eyes. And your referrer doesn’t know where he/she stands either.
The best thing you can do is to try to get a warm referral (see link) but in parallel send a cold-email. It won’t hurt. Sending someone an email twice isn’t going to be weird. I probably wouldn’t even notice if someone emailed me 3x.
If you cold-email an investor, whatever you do, that first email must be compelling enough to be moved into a concrete meeting slot. Asking someone for 15 minutes of his/her time while providing zero context on your business is a good way to get archived immediately. Why? Because even though it seems like it’s just 15 minutes of time for a call, that’s what thousands — I kid you not — of other entrepreneurs are asking for at the exact same time.
3. Make the most of whatever structured time you have
Once you have a concrete meeting time, no matter how short, you must have a pitch that is appropriate for that time period. Most of my first structured meetings with people are 20 minutes. This is pretty short. And, a lot of people try to push for longer meetings. No matter how much time you have, you should have a pitch that can fit that time slot. You should have pitches for:
- 30 seconds
- 5 minutes
- 20 minutes
- 45 minutes
The goals for each of these blocks are obviously very different. You’re not going to get investment dollars on a 30s pitch. The 30s pitch is to gauge if it’s worthwhile to move you to a longer pitch.
Similarly, I favor 20 minute conversations as a starting point, because it’s enough time for a concise, direct entrepreneur to outline:
- Team backgrounds / mission / why they are doing this
- Problem they are solving
- Brief solution + differentiation
- Notable KPIs
- High level unit metrics
The best entrepreneurs I’ve met can cover all of this in 20 minutes and more and still have time to spare. Part of this is that they have thought deeply about what points are important and make sure to cover all of those points while avoiding long meaningless tangents.
This means that you’ll need to pace the conversation accordingly. If 10 minutes have gone by in a 20 minute meeting and we’ve only talked about your team, that is not good. You must drive the conversation to cover everything you want us to cover — i.e. whatever is needed to push me to the next step — in whatever allotted time. We won’t be able to schedule another time if we don’t cover everything unless that first meeting is compelling enough. As an entrepreneur, it’s your job to make sure to cover everything that is compelling to get to that next step.
By the time the call is over, you should know concretely what the next steps are. If you don’t, make sure to ask and push.
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