Essential Pitching Skills for Founders with Thea Sokolowski
Summary
TLDRThe transcript offers valuable insights into effective fundraising and storytelling for startups, emphasizing the importance of understanding investor perspectives, showcasing a compelling mission and business model, and building strong relationships. It highlights the significance of demonstrating adaptability, market understanding, and the 'why now' factor in pitches, and stresses the ongoing nature of engagement with potential investors. The speaker shares personal experiences from working in African markets and the value of being genuine and offering mutual value in interactions with investors.
Takeaways
- 🚀 The importance of having a well-designed pitch deck cannot be overstated, as it can influence an investor's decision between two similar companies.
- 🌍 Understanding your market and being able to adapt to feedback and changes is crucial for early-stage startups looking to attract investment.
- 💡 Investors are not just looking for a good business idea; they want to see a compelling mission and a solid business model with a clear path to profitability.
- 🤝 Building genuine relationships with investors is key, as they are not only funding sources but also potential long-term partners in your business journey.
- 🌟 Showcasing your team's adaptability and ability to understand the target market is as important as the business idea itself in the early stages of fundraising.
- 📈 Highlighting the 'why now' aspect of your business is essential to demonstrate the timeliness and relevance of your solution in the current market.
- 🔍 Investors appreciate founders who are aware of the market landscape, including the competition and alternative solutions currently being used by their target customers.
- 💼 The 'problem-solution' narrative is a fundamental part of any pitch, where founders need to clearly articulate the issue and how their innovation addresses it.
- 🛠️ Use of graphics and visual aids can significantly enhance the effectiveness of a pitch, making complex ideas more accessible and engaging.
- 🔗 Maintaining ongoing communication with potential investors, even after a round has closed, can keep doors open for future opportunities and collaborations.
Q & A
What is the primary factor that investors consider when presented with similar business proposals?
-The primary factor that investors consider is the presentation quality. If two similar business proposals are presented, the one with a better-designed deck is more likely to be favored as it demonstrates professionalism and thoughtfulness.
How long has Thea been working in African markets?
-Thea has been working in African markets for about 11 years, primarily with startups.
What is Stitch, and what does it focus on?
-Stitch is a payment startup headquartered in South Africa that focuses on building payment solutions for large businesses across Africa.
What was Thea's role at Catalyst Fund?
-At Catalyst Fund, Thea was part of an accelerator program for inclusive fintech companies across emerging markets. Today, Catalyst Fund has shifted its focus to become a climate-focused fund working with early-stage companies in Africa.
What are the two organizations that Thea founded in her spare time?
-Thea founded two organizations: Venture for Africa, a talent community for startups in Africa, and Women Who Build Africa, a community for women working in the tech and investment space on the continent.
What does Thea believe is essential for early-stage startups when pitching to investors?
-Thea believes that early-stage startups should focus on demonstrating their adaptability, understanding of the target market, and the team's ability to make necessary pivots and optimizations in response to market feedback.
Why does Thea emphasize the importance of building relationships with investors?
-Thea emphasizes building relationships with investors because it's a long-term partnership. Investors can become very important parts of a company, potentially even joining the board. It's crucial to establish a connection beyond just the business success.
What is the significance of the 'why now' question in a pitch?
-The 'why now' question is significant because it addresses the timeliness of the business idea. It explains why the market is ready for the solution being offered at this particular time, which is crucial for investors to understand the opportunity's relevance and potential for success.
How does Thea suggest maintaining relationships with potential and existing investors?
-Thea suggests maintaining relationships by keeping investors informed through regular updates on the company's progress, engaging in meaningful conversations, and being open to meetings even when not actively fundraising. She also recommends using a CRM system to manage potential investor leads.
What is the key message Thea wants创业者 to take away from her presentation?
-The key message Thea wants创业者to take away is the importance of storytelling and relationship building in securing investment. She emphasizes the need to understand the investor's perspective, craft a compelling narrative around market changes and why the startup's solution is timely, and continuously nurture relationships for long-term success.
Outlines
🌟 Introduction and Background
The speaker begins by discussing the importance of presenting well-designed materials to investors, emphasizing the need to put your best foot forward. They introduce themselves as Thea, based in Nairobi, Kenya, with a background in marketing and communications, and share their extensive experience working with startups in African markets. Thea talks about their role at Stitch, a payment startup, and their involvement in other organizations like Catalyst fund and mWater. They also mention their side projects, Venture for Africa and women who build Africa, which focus on supporting entrepreneurs and women in tech and investment across the continent.
💡 Importance of Positioning and Storytelling for Investment
The speaker delves into the significance of positioning oneself effectively when seeking investment. They explain that at early stages, investors are primarily interested in the team's adaptability, understanding of the target market, and the ability to make necessary pivots. Thea also highlights the importance of timing, asserting that the market readiness for the business idea is crucial. They discuss the need for a compelling mission and business model that can attract investors and potential customers.
🤝 Building Relationships with Investors
The speaker emphasizes the importance of building and maintaining relationships with investors. They share insights from their experience at Stitch, where they've successfully raised funds by fostering personal connections with investors. Thea talks about the CEO's strategy of engaging with investors through casual conversations and keeping them updated on the company's progress. They stress the value of these relationships not just for fundraising but also for the long-term success of the business.
📈 Investor Relations and Pitching Strategies
The speaker provides a detailed overview of effective investor relations and pitching strategies. They discuss the need to understand the investor's perspective and tailor the pitch accordingly. Thea shares a framework for crafting a compelling pitch, starting with a clear statement of a fundamental change in the world and how the business is positioned to take advantage of this shift. They also talk about the importance of the 'why now' component of the pitch and how it addresses the market's readiness for the innovation being presented.
🛠️ Tools and Techniques for Effective Storytelling
The speaker shares practical tools and techniques for effective storytelling in pitches. They reference a Medium article about the 'greatest pitch of all time' and discuss the importance of identifying an undeniable shift in the world as a starting point for the pitch. Thea provides examples from successful companies like Spotify, Dropbox, and Stitch to illustrate how they've used storytelling to capture investors' attention and communicate their value proposition. They also emphasize the need for data and facts to back up the story and make it more convincing.
🌐 Understanding the Market and Investor Interest
The speaker discusses the importance of understanding the market and investor interest, especially in the context of the Kenyan market. They mention the potential of the gaming industry in Africa due to its popularity and the high volume of users. Thea also talks about the need for a clear problem statement and solution in the pitch, using examples from successful companies to illustrate how they've addressed specific pain points in the market. They stress the importance of showing the product and using analogies to help investors visualize the business's unique selling propositions.
📊 Structuring the Pitch Deck
The speaker provides a comprehensive guide on structuring a pitch deck. They outline the key elements that should be included, such as the problem statement, solution, market size, business model, team strengths, and roadmap. Thea emphasizes the importance of showing financial projections, competition analysis, and use cases to help investors understand the potential of the business. They also discuss the value of including client testimonials and endorsements to demonstrate market validation. The speaker concludes by highlighting the significance of the mission and vision of the company in inspiring investors and potential partners.
🎨 The Impact of Design in Pitch Decks
The speaker discusses the impact of design in pitch decks, stressing that while the content is king, the presentation's visual appeal can significantly influence an investor's perception. They recommend having two versions of the pitch deck: one for in-person presentations with minimal text and visuals to maintain engagement, and another more detailed version for follow-up. Thea emphasizes the importance of good design in making a professional impression and suggests using online tools to enhance the deck's visual quality.
🤔 Handling Investor Feedback and Networking
The speaker addresses the importance of being open to feedback and advice from investors, even if they are not the right fit for investment. They highlight the two-way nature of the relationship between founders and investors, suggesting that founders should also evaluate potential investors. Thea encourages founders to be resilient in the face of rejection and to leverage networking opportunities to connect with other founders and potential partners. They conclude by emphasizing the value of sharing experiences and supporting each other within the entrepreneurial community.
Mindmap
Keywords
💡Investment
💡Pitch Deck
💡Startup
💡Market Understanding
💡Adaptability
💡Business Model
💡Relationship Building
💡Why Now
💡Value Proposition
💡Fintech
Highlights
The importance of having a well-designed presentation when seeking investment, as it can influence an investor's decision-making process.
The significance of presenting a clean, well-thought-out, and visually appealing pitch to potential investors.
The speaker's extensive experience working with startups in African markets, providing valuable insights into the investment landscape.
The necessity of understanding and adapting to the unique characteristics of the African market when crafting a business strategy.
The critical role of storytelling in connecting with investors and effectively communicating a startup's mission and vision.
The importance of having a compelling 'why now' in a pitch, which demonstrates the timeliness and relevance of a startup's solution.
The value of building long-term relationships with investors, beyond just the fundraising process.
The significance of being genuine and clear in the ask when seeking advice from potential investors.
The necessity of having a deep understanding of the target market and its needs to successfully build and scale a business.
The importance of showcasing a startup's adaptability and the team's ability to make necessary pivots in response to market changes.
The role of a compelling mission and business model in inspiring investors and potential team members.
The practical advice on maintaining ongoing communication with investors, even after successfully raising funds.
The insight on how to effectively use investor networks and connections to further a startup's growth.
The emphasis on the ongoing nature of fundraising and relationship-building in the startup world.
The speaker's personal experience with Stitch, a payment startup in Africa, and the strategies used to successfully raise funds.
The importance of having a clear and inspiring vision for the future of the business, as well as the ability to execute on that vision.
Transcripts
I think the unfortunate reality is like
we're all human and so if if an investor
is presented with decks of two companies
that are in all their ways pretty much
the same or similar but one is like much
better designed than the other naturally
they may they may you know uh lean
toward that one so I think um you always
want to put your best foot forward and
always want to make sure that what
you're presenting is clean that it's um
you know like well done and and
graphically thought through and there's
a ton of tools online that can help you
with this say hi everyone uh it's great
to meet you all my name is Thea uh I'm
based in Nairobi Kenya uh I'm originally
from the US if you can tell by my
accents but I've been working in African
markets for about 11 years uh primarily
with with startups um so I'm going to
share my screen I apologize that um I
can't see the chat and present at the
same time so let's see how this goes um
but yeah I I have worked in uh primarily
in marketing so uh my background is in
sort of marketing and Communications uh
but the work that I've done with
startups over the past 11 or so years uh
has been everything from building their
brand and creating their marketing
strategies and sales strategies to um
enabling them to to craft their story
and uh connect with investors um and
actually raise funding so um I've worked
with a few different organizations um so
you can see here at the moment my
full-time job is with a payment startup
called Stitch we're headquartered in in
South Africa uh and we are a payments
infrastructure company uh building sort
of Payment Solutions for for large
businesses across Africa um I've been
with them for about two and a half years
so since really since the beginning um
and I work on everything from you know
building the brand and and working on
you know marketing and getting customers
in top of funnel to working with the
product team on our language and how we
talk about the solution uh to working
closely with our CEO on investor
relations um and I've been with him
through the last few fundraises as well
um previously I was with an organization
called Catalyst fund which is um an
accelerator for um individuals well at
the time was an accelerator for
inclusive fintech companies across
Emerging Markets um today Catalyst fund
has shifted a bit and they are actually
a climate focused fund uh working with
early stage companies in Africa um and
previously I was with a few companies
called mwater and M so m is the
nonprofit arm of meltwater which is a
global software company
um at meltwater I was the head of
marketing for for a division um but m is
based in Ghana and that's that's where I
first landed when I came to to Africa um
and I was messed as a training program
for people that want to become Tech
entrepreneurs on the continent so um I
worked there teaching business teaching
marketing strategies teaching
storytelling pitching Etc um that's
really where where I got my start in
this space um and then in in my spare
time I actually have two organizations
one called Venture for Africa which is a
Talent Community for startups in Africa
um and one called women who build Africa
and this is a community for women just
working across the tech and investment
space on the continent uh really
creating a place for them to sort of
come together and find mentors um you
know find colleagues and and and share
experiences so um you know a lot of the
work that I do sort of on the side is
also helping uh the women that are part
of the organization prepare their own
stories and their and their storytelling
um so that's a bit about me if you have
a question maybe if Amilia can just chat
because I can't see unfortunately the
chat but I will leave time for Q&A after
the presentation but yeah today today
I'm here to talk to you a bit about how
you can position yourself and tell your
story for for investment um so I imagine
there's quite a few people in the room
today I imagine that you're at all
different stages uh of your business but
I can focus today more on the primarily
early stages so when you you're you're
first um you know having an idea and
going for your first few rounds of
funding um I think in important thing to
to keep in mind when you're when you're
looking at investment is that you know
at the preed And precede levels what
investors are looking for is quite
different than what they're looking for
at later in growth stages right because
at this point you don't have a ton of
traction to show you know you haven't
been doing this a long time you're
you're really selling them on who you
are and the the experience and knowledge
and talent that you and your team bring
to the table um and particularly you
know the the the adaptability um you
know as you all might know in the
startup space things change very very
quickly and so very very often probably
more often than not the particular idea
or business or business model that you
start out with is probably not going to
be what it looks like a year or two
years down the road right so the
investors really just want to know do
you have the propensity to understand
your Market well enough to make those
adaptations and make those pivots as and
when is needed um do you have an
understanding of the target market
you're trying to reach and what you're
actually trying to for them enough to be
able to hear that feedback and
continually optimize um the business
that you're building to really create a
solution that meets their their needs um
and of course you and your team right so
why are you in particular best placed to
build this business in this market right
now um and something that I'll talk
about a little bit further down the road
is is also this this question of why now
which I think is is probably one of the
most important parts of any sort of
pitch or conversation with investors um
you know you could you could be the
right fit to be a really successful
entrepreneur and have a really great
idea but the market you're going after
at this point in time may not be ready
or right for that right so so the
understanding of like the the sort of
pieces of the world that have met at
this particular point in time that make
it optimal for you to be solving this
problem and building this business right
now um is something that they want to
understand and then of course a
compelling Mission um and business model
uh a uni selling proposition so at the
end of the day investors are running a
business right their business is to make
Returns on the Investments that they
make and so they want to understand is
this something that's actually going to
be able to make money um that's going to
be able to make returns uh does it have
a you know an compelling business model
that will be able to sort of um get to a
point of say profitability relatively
quickly um and are you inspiring I think
you know at the end of the day we all
want to follow follow and be part of
something that that really drives us
right and is meeting a particular
Mission or or touching on a piece of um
the world's problems that mean something
to us so if you're able to inspire an
investor to believe in your mission and
your vision enough to invest in the
company then there's also a good chance
you're going to be able to inspire
talented people to join your team or
businesses or customers to to buy your
product right so you you as a leader
also need to be compelling and inspiring
yourself um so like these are the things
you know that that investors are really
looking for at that early stage um when
you get to growth stages and later
stages obviously then attration becomes
very important I think that we all
understand or aware of the the sort of
downturn that the global fundraising
economy has taken or Venture economy has
taken um over the past few years I think
back in you know 2021 it was a different
story um you know people were able to
raise money on on a lot of ideas and and
um you know inspiration I think and
today it's very much about where is the
profitability where is the path to
revenue um you know where is the
traction where is the growth because you
know and I think it's a little bit more
realistic but because that's really
what's going to make the company
successful down the road um so yeah as
as the business goes to different stages
there's different things that you want
to put forward um one thing that I
always try to emphasize is this idea
that investors are people too right we
all know them uh I have many friends
that are that are investors that are in
a VC space um I think you know to the to
the extent that in this startup culture
has has really created this world where
I feel like a lot of Founders especially
at the early stage feel like they're
always on um you know we we have demo
days and we have um you know speed
dating opportunities with investors and
we have conferences and we have you know
all these opportunities for you to pitch
or to be in Pitch mode which is
fantastic and and and that's where a lot
of these things happen but I think
equally important to remember is that as
much as you probably don't want to be
pitch ping at someone all day and
reciting you know these practice lines
all day they probably don't want to be
pitch at all day so I think something we
need to think about when you're when
you're thinking of fundraising is like
longer term right you're trying to build
a relationship with this person if
you're successful and you raise funding
this person is going to be a very
important part of your company right
imagine even on the board so if that's
the case then you want to know that you
get along with this person that you can
have a coffee or a beer with this person
that you you have things in common
Beyond just wanting your company to be
successful because it is a long-term
relationship right that that you get
into and so I think being able to sus
that out early on and and start to form
those connections and find meaningful
ways to connect with investors um both
at the point where they may be looking
to invest but also for the future is
super important um you know and I can
speak a little bit about the the company
that that I'm working at now so Stitch
we've raised um $52 million in total uh
over three rounds essentially so so
we're a series a company um we came out
of stealth in February 2021 with $4
million uh in seed funding later got us
a $2 million extension and we raised our
first series a beginning of 2022 and
actually raised an a extension um at the
end of last year which is amazing in
this economy and in quite unheard of but
it's because my my CEO is particularly
talented at um this relationship
building he you know has all the all
these investors and everyone on WhatsApp
and he'll chat about you know the latest
like um sleep tracking Innovations or
this and that and like find ways to
really connect with them on a personal
level and through that he's also been
able to sort of weed out because you
know it's a two-way street he's been
able to weed out as well you know these
aren't the type of people I want to have
on my cap table because um you know
money's great and and we need money and
that's important but it's actually
equally important that the people that
are are um contributing or part of your
company are able to bring more value to
the table so you know as you can get to
know someone you can get to know for
example their Network um the type of
people that they can connect you to um
their willingness to to also sell you to
potentially other investors or to to
clients for example um and you know I'll
say that I think some of our Angel
Investors that we have at s have been
like by and large way more valuable than
some of the larger institutional
investors just because of the network
that they bring and the support that
they offer and and I'll talk about this
a little down the road too but it's very
important to continue to cultivate those
relationships um you know from the point
when you you first meet a potential
investor through to when they they
potentially invest in you but also after
right because you want to continue to
get as much value as you can out of them
um and so it's super important that you
keep up the communications that you have
with investors from start to finish so
what I always say is almost like always
be selling always be raising or always
be closing always be raising right um to
a fundraise especially in the in the
startup World um does not necessarily
have a start and an end your actual
round will right you're going to have a
limited amount of time uh hopefully that
you you are um have an open round and
you'll have a Clos date but those
relationships and that cultivation of
those relationships and your um
willingness to connect with investors
should be an ongoing thing that you're
doing you know all the time even if
you've just closed um and the and the
reason for that is because you never
know what happens in the future right um
you know we we didn't foresee actually
opening in a extension but because of a
serendipitous opportunity we um had
stayed in touch with a lot of warm lead
investors um they were very impressed
with with our growth and they came back
after seeing our numbers and said hey
this is something I want to be a part of
um and so and so you know that's why I
say like keep keep warm leads almost you
should have a CRM of of potential
investors the way that you have
customers um so all the people that
you've interacted with whether through
conferences or something like this or um
you know that you've reached out to um
even if the response was was a not right
now for example you want to just keep
them informed and keep them in touch um
and so you can do that in a very light
touch way um so what we do for example
is we send quarterly or even by anual uh
updates on your progress so they can see
how you're doing and maybe you know six
months ago you were too small for them
but maybe now they're interested or
perhaps a year ago they had a different
investment thesis but now they've raised
a second fund and you know that has
changed and now you fit it you never
know right or potentially they can think
of someone that that is um a good fit
for you so so we send these these
updates and you know you can use your
own discretion to determine like how
much you're actually willing to um share
in these uh depending on how close you
are to these investors but um you know
getting them excited sharing about your
growth and your major accomplishments is
a good way to do that um and I always
say like never decline a relevant
meeting I think the the other side of
that is there's there's potentially
going to be a lot of people that may
waste your time as well and so you know
you get better and better um with more
experience as a Founder kind of
determining what's worth you spending
your time on or not but I always say
like again even if you're not raising
right now um never say no to a meeting
with someone who could potentially be
helpful in the future
um so you know always be open to
building those relationships and then
for your existing investors once once
you do raise around um investor updates
are very helpful tools and I'll say it's
not just for their benefit right so
again on the one hand it's it's it's a
way for you to constantly be top of mind
and they can think of someone else they
want to introduce you to what have you
but I think the other part of it is so
for example we send these a little bit
less than monthly depending on on how
quickly we can get it out but um we
always include things like asks um and
challenges so we'll say to them hey my
ask this month is I my uh customer
support team is is really struggling
with scaling um the the support function
as as our business grows can anybody in
our investor Network connect us with um
successful fintech companies that have
done this right um and and connect us
with a customer success person and you
know we get in five six seven people um
and so I think just those little things
are super super valuable and something I
think is not talked about enough to
Founders when they're going through this
process at the early stage um but like
that's really the value ad that an
investor gives you especially The Angel
Network to be honest um Beyond just like
the cach itself um so this is an example
uh of a page that we used to have it's a
little bit outdated and and and we don't
use this quite as much anymore but in
the early days this was very very
helpful for us so Stitch and STS was
essentially a a notion page where we
kept um all of our past investor updates
for example all of our past like
marketing newsletters um a like a
directory of the team a directory of our
major clients a directory of other
investors and and also these kind of fun
they're like essays that our Founders
wrote um early on that was you know them
kind of dreaming about what what Stitch
could be um and to me as a as a
potential employee I also saw this and I
said you know I want to work with these
people like this is what was exciting to
me it was inspiring to sort of read
their vision and hear from from the
individuals um how how this was you know
how how they were seeing this fold out
and so I think this was a super super
helpful tool um that that they would
share with any like really solid
prospects uh that really gave them a
full flavor and taste of like who we are
and what we were trying to do um yeah so
in terms of the pitch and the story
itself so that's sort of like investor
relations so let's move on to the pitch
and the story itself um again let me
just quickly check because I can't see
this chat um if there are any questions
but if not um I will I will continue and
then we could do questions at the end
um cool so yeah there's this um very
cool I can't take credit for this um
there's this very cool medium article
and I and I'll find the link and share
it on the chat uh after this but uh
someone wrote back in 2017 about uh the
the greatest pitch of all time or the
greatest pitch in the world I think it
was called um and it was this company uh
in the US called Zora that's like a a
data company um
but you know what was so compelling
about the way that they told their story
and this this could be by the way for a
potential client in in customer
conversation or for an investor
conversation in both cases you're trying
to win this person over right you're
trying to convince them to invest in
what it is that you're selling uh
whether monetarily or by buying the
solution so um from an investor
perspective you know what you really
want to do is is is try to understand
first of all who's in the room who's on
the other side of the table who is it
that you're talking to um where does
their understanding of your Market or
your customer or your particular
solution start and end where is there
opportunity for you to educate a little
bit um and where do they already have an
understanding in which you could dive a
little bit deeper right so that's like
the first thing you want to get into
your to your mindset is just like okay
for example you know I live in Africa
I've lived in Africa for 11 years I work
in fintech I work in payments so already
if you're a a a fintech company working
working in Africa you know that I have a
very good Baseline understanding of that
market and the nuances and what makes it
unique but if you're talking to an
American investor who has never really
been to the continent before maybe not
in the payment space or even in the
payment space you know that you have to
start with a little bit of background um
education around hey um you know this is
this is why this particular Market that
I'm working in say it's Kenya is unique
right um we have things like mobile
money we have uh you know low banking
penetration all of these things that are
fundamentally to Baseline they will need
to understand to see why your solution
is necessary right so kind of just
starting there but um the way that you
tell the story I like to say in this
sort of greatest pitch there's there's
this like Old World New World Paradox
where you essentially want to in a way
that is not too dramatic um make this
statement that hey the world is changing
right something about the world has
fundamentally changed so the old world
is the way that it was working before
and this new world is approaching and
we're at this point right this
intersection of that old world and New
World um and and things are going to be
very different from the way that they
were before and if you investor or you
you know business that I'm trying to
sell to or customer trying to sell to uh
does not understand that or is not
taking advantage of that and jumping in
with these Innovative thinkers who are
um you know sort of ahead of the game
and in what that new world looks like
then you're going to be left behind and
you're going to be losing out right um
and and for for this company Zora who
who who um you know they used as an
example in the article um they the the
the change that they were talking about
was the subscription economy so this is
again back in 2017 but it's like hey you
know the the there's um people are not
just purchasing once offs in e-commerce
anymore there is this whole new world of
of a subscription economy where people
like to have things coming to them they
like to subscribe they don't want to
think about having to make a decision
about a purchase every single time for
example with something like you know
fashion with these fashion subscription
companies were were becoming popular in
the US um you know the old world is this
once off e-commerce economy the new
world is like subscription based and the
solution that Zoro was selling was um
data tools and e-commerce tools for
subscription-based businesses and so it
was kind of this no-brainer of like hey
the world is Shifting this way more and
more and more and more businesses are
going to become subscription based
businesses so don't you want to be in on
you know the the the infrastructure the
tool that's going to facilitate the
growth of those businesses um you know
the world is changing and so the
obviously you want to have other data
points sort of backing that up to say
well what has changed about the world um
but but this idea of of being able to
say um fundamentally and without doubt
that like there's a change Happening
Here is is how you sort of hook people
in so like this is an example of one of
the slides in in Zora's deck right we
now live in a subscription economy um I
think one mistake that maybe people make
too is is it being not div decisive
enough so you see a lot of things like
the world is evolving you know and we're
we're increasingly seeing a you know a
shift toward toward XYZ um and I think
when you're really trying to make a
statement and get someone's attention
that's that's a lot less effective than
something that you can definitively say
has changed um and so there's just is
sort of um thinking around how you can
maybe craft a statement around what that
Global shift is but the whole idea is
that um it is it is significant enough
that it necessitates an innovation that
is coming essentially in the form of
what you're selling and the rules of the
game have changed in a very permanent
way and there's no going back um so a
few tips they give are you know things
like making sure that you you make it
clear there's going to be winners and
losers in this situation so because the
world has changed somebody is going to
lose out and somebody else is going to
become you know more profitable is going
to become a winner so you have to make
it clear to them who that is um and you
know how how you're facilitating the
growth of the ultimate winners um it
needs to be not incremental it needs to
be stated as done and permanent and it
has happened um and disregard convential
wisdom and you have to talk a bit about
how that change has happened um that
necessitates again the the um the need
for this this new Innovation so yeah
again this is from this this article
great pites start with change um highly
recommend you you check that out um but
one other piece of this is and this is
what I kind of mentioned before um that
that shift or that story that you're
telling um is also predicated on this
this uh thesis that you must have around
why now so why now speaks to the need
for this Innovation um the need for it
to be happening in this market for the
Target that you're trying to reach and
why you are the team that is set to to
to make this happen right um and so this
is like a cool graph again from a few
years back but um the the pages of a
slide deck for example when investors
see a slide deck um that they spend the
most time on so obviously financials
very important we need to make returns
um team again especially at the early
stage super super super important who
are you and why can you you why the
person to fill this um yeah competition
and then why now is like one of the
slides that I think a lot of um Founders
almost forget right to to to include but
it's it's super important um thing to
happen there and then you go through the
other kind of standard things and I
again Depending on time I'm happy to
talk through like a few other um
standard like slides that you have to
have but I think that's that's more or
less common knowledge at this point um
but yeah I mean I think you know it's
important to again put yourself always
in the mindset of the investors that
you're trying to to reach and speak with
um they also have it quite challenging
right so there's a quote from a a very
famous hedge fund investor called Dan L
says to be an investor is to live
constantly at the intersection of story
and uncertainty and the story piece
comes from the fact that again as early
stage Founders you kind of don't have
much to go off of except your story
right so if you can tell a compelling
story and you can make people believe in
this idea and this vision and this thing
that you're trying to build and have
some data points to back that up
um you know you have a very good chance
of winning winning people over um but of
course the other side of it is an
investor kind of knows well um you know
in a portfolio of 10 companies we only
really need one to succeed we know nine
will probably fail um so the uncertainty
is there right um and so you have to
kind of uh your job is to convince them
to to kind of pass that line of
uncertainty and and and start to really
believe in your story um and one other
quote here is is I likeed that there are
always
two sides to every investment the the
number in the story um every investment
price every Market valuation is just a
number from today multiplied by a story
from tomorrow again to me this also
speaks to the fact that there needs to
be numbers there needs to be data there
needs to be a compelling reason for them
to invest in this in this business um
but but there's going to be a lot of
businesses that have more or less
compelling numbers because at the very
early stages you're kind of making it up
anyway right like you think that you can
reach this many people and you think
that you can make this much money from
the business and the investor gets to
decide whether or not they think that's
true um but but what can really um you
know turn the tables for you or get them
over the the the ledge is is that is the
story that you tell um and so if if you
have them really believing in the
possibilities of tomorrow um and you
have the numbers to back that up then
then you're in good shape um okay so I'm
going to stop there for now because I
realize it's about 30 minutes um and I
have pitched de Basics if you wanted me
to go through it but I think maybe we
just start with the
Q&A
[Music]
um Amelia what do you
think hi so let's again how is uh my
connection now can everybody better okay
perfect sorry apologies for earlier uh
so yes thanks a lot for uh your
presentation it was very interesting
everything that you shared and we have
some questions let's just start with
that so I will put it on this
page uh this question is from Ahmad
curious about your thoughts on reaching
out to V or Angel Investors for advice
as someone working on their first
startup that is at a pre MVP stage I
sometimes reach out to peps for advice
and worry it would affect future
relationships H great question um no you
know I think it couldn't hurt like the
the I think the main thing here is a you
want to be genuine in your ask so you
know they can probably smell a mile away
if you're really just fishing to try to
get investment or if you actually want
their advice if you seem genuine and you
actually want their advice um and you
and it's someone that's like super
relevant right they're they're working
in your your field or in your space you
know obviously don't start with hey I
know you're an angel investor but like
hey I know that you have worked with a
lot of companies in the space or you're
an expert in this space um I'm just
starting out I would love uh to to pick
your brain for 30 minutes if you have
time I think the other part of it is to
H to come with a clear agenda so these
are the three things that I need help
with that I would love your thoughts on
as opposed to just um hey I'd love to
like talk to you for a half hour um I
get a few of those and it's really hard
it's really hard to to answer them
because like I I don't have a lot of
time so if I'm going to give you time I
I want to see like clearly you know
the the value I can offer and and
potentially think about what you can
offer that person in return who knows um
I think never underestimate uh the the
exchange of value that that you can
offer as
well great answer thank you and our next
question uh about the why
now the why now part of the pit I find
that it tends to be quite subjective
even if backed by evidence is it okay is
the part of the pit that feels less
factual and more the founders
importation or of the current uh
Market yeah um it it is is is the
reality right so I think um you know the
the the data that you use or that you
choose to draw connections between also
shows that you are aware of what's going
on in the market right so like you know
again an investor has seen a million
decks right so if they can see that your
logic doesn't make sense and you're just
kind of pulling things out of thin air
to try to tell a story they can they can
see that but if if what you're saying um
really shows that like you've thought
this through and you can foresee trends
that are coming in the future you've
learned from you know what's been
happening in the market previously and
you you really see um the need for this
and why the timing kind of makes sense
then it just like further underscores um
your value I think you know most of a
pitch again at a very early stage is
subjective because you haven't done the
yet so you know even even your
financials it's just a guess right um
and so I think all they all that that
does is is show that you know how to
think about the market um and that you
qu you can kind of do almost a SWAT
analysis to see okay well um these are
the reasons that this could be
successful and then that links to also
you know when you talk about potentially
competition or or uh challenges uh that
you foresee in the market right like
they just want to know that you've sort
of done that thinking um because that's
what required as a
Founder awesome thanks hopefully it
helps and another
question Andrew Andrew is very glad that
you are
here Barber games based in uh out of
Atlanta eort Capital we focus on Kenya
East Africa what touch points are
investors you have come across picks
their interest in the Kenyan
Market
uh oh wow uh it depends on the it
depends on the industry I guess I
actually know a few people working in in
the gaming space um the gaming space is
cool in Africa because it's super
popular uh I think the the biggest thing
with something like that is volumes
right and that's why like fintech and
payments businesses tend to be so
compelling because you can really see a
path toward revenue and profitability
when you're talking about very very
large volumes um I think especially for
something like G it's not a huge cost
right so there's enough people that have
disposable income that can participate
in these types of things and pay for
them that makes it really interesting um
and there's like not a ton going on in
these markets right so if you can really
create something that captures attention
and gets a lot of people involved um
then you have a very captive audience um
at a high volume that that has a lot of
potential so yeah I think that that
space is cool that that that's what I
would talk about is like you know the
the interest that Kenyans have in online
games the volumes um that sort of
thing yeah that was quite specific and
uh few people are asking if you can
share a little bit more about P basic
sure sure yeah I'm happy to to take them
through that do you want me to do that
now briefly okay that's fine um where
was I here okay yeah so I'll try to go
through this a little bit
quickly um yeah so I think you know as I
said before um something you want to
start with and maybe this isn't part of
your typical pitch deck but like what is
this un undeniable shift in the world
that has happened like what what are you
going to grab these people's attention
with in the first few seconds that
you're speaking with them um so that
they're interested they're curious um
and they're agreeing with you right this
is an example from Spotify actually and
their original one of their original
pitch decks um that it's a quote from
David Bo obviously but music itself is
going to become like running water or
electricity it's going to become so
ubiquitous that everybody is going to
need it and so if you aren't investing
in us the company that's going to bring
people this music infrastructure um then
then you're going to miss out right on
on essentially funding the next water
electricity so it's like those types of
things um but then obviously okay your
Basics your clear problem statement
right well what is it that you're
solving um and what about the shift
you've mentioned is going to create
winners and losers which makes um you
know which creates this problem that
needs you or your Innovation to solve um
so this is an example from Dropbox again
way back in the day visuals by the way
always a helpful Aid um storage at the
time this is is H Computer storage is a
mess um that's all they needed to say
and then these are the pain points right
in 2007 it was still a pain work on
multiple computers share files etc etc
right this is why a company like Dropbox
needs to exist the businesses that um
are still operating on this system are
going to lose out to any businesses that
adopt a new storage system right who can
save all these time and resources Etc
dealing with all of this stuff um this
is an example from Stitch from my
company um this is a problem we talk
about so connecting businesses to the
financial system is difficult slow and
expensive and once connected businesses
face challenges with scale and
efficiency and ultimately it limits
their their customer reach and creates a
bad experience for their customers so we
are solving this problem by building a
better more efficient and more scalable
payments infrastructure right um so
again the clear solution and the
solution has to then address all the
pain points or elements that you
identified in the problem statement um
so that it makes sense as to why this is
the solution for that problem right um
so again going back to Dropbox um
Dropbox has was created to keep files in
sync backed up accessible and it just
works um Stitch this is this is how we
talk about our solution but we're a PSP
we're a payment service provider um and
we're essentially creating that
connection that we mentioned is
difficult to to create right um between
Merchants between customers and between
the financial infrastructure um don't
forget also to show the product I think
again especially for like a tech company
but it doesn't matter what um you know
they almost won't like won't believe
that it's real if they can't actually
see it right so dashboards or um this
this is this is a cool example that that
we use to to help people visualize
because with payments infrastructure
it's very difficult you can't see a lot
right you can see dashboards you can see
like what the flow looks like but
otherwise it's really just backend
infrastructure so um when we were
pitching clients uh a few back during
the the World Cup actually the these are
like a I mean a rendering of supposedly
what messy's uh cleats look like and so
the way that we were trying to explain
how um precisely engineered our solution
is to help you know make sure that
payments are reliable and and come
through eff efficiently Etc is we kind
of compared it to to the way that a
cleat is designed where every single
angle every you know the fabric that's
used the shape of the toe the the
material used to create the toe
and combined with like the angle at
which messy kicks all have a slight
impact on the direction that the ball
goes right and the speed that the ball
goes and therefore his ability to score
um and so you know comparing this to
payments infrastructure it's like any
small tweak that you make the
engineering in the back end when you're
talking about lots and lots and lots of
payments at scale can make a huge
difference in in your you know um
acceptance rates and your your
reliability and stuff like that so
always helpful to use some sort of like
Familiar of the time analogy to help
people understand how you're really
thinking about um some of like your
unique selling propositions right
another example Airbnb easy one right
just like show them what it looks like
um the wine now side which we talked
about um this is another example all
companies are turning into digital
product businesses so you don't want to
be left behind um this is the time to
sort of jump on this bandwagon um this
is a why now slide from drop Dropbox um
why now because there's a lot of devices
that are being created which have bigger
files and more and more and more content
they're increasingly distributed in
remote teams uh bandwidth is a challenge
online storage is is basically at the
time it was like a wideopen opportunity
there were no real competitors in this
space and so they're saying we could be
like the Google right of of of storage
um and then you have your competition um
and other current Solutions so
again I think we always think of the
typical uh competition side of like you
know your business and like all the ones
doing exactly the same thing and we have
this they don't have this etc etc and
that's fine but I would encourage you to
think about competition as as a lot
broader so it's not just exact
businesses doing the exact thing you do
but rather what are your Target
customers doing right now to solve this
problem so what are the other solutions
that may not even be Tech Solutions or
you know or startup Solutions how are
they solving this problem right now
because that's also what you're
competing with and a lot of times back
in the day with you know things like
inventory Management Solutions or you
know solutions for small businesses one
of the competitors was always like Excel
like people are still you know tracking
transactions and inventory on Excel um
CRM Solutions Etc so um that's not a
direct competitor but it is certainly a
solution people are using so just you
know always important to keep that in
mind again example from Square um and
and this is sort of the value to the
user um they're comparing themselves to
traditional card processing firms
because that's essentially what they are
um versus online card processing uh
companies um H yeah and then talking
about defensibility H and then this is
them versus you know direct competitors
versus um versus competitors that are
kind of coming into the space right back
when Apple and Google were building
Apple pay and Google pay um that that
they foresaw could become potential
competition um and this was an example
presentation I did in um Tunisia but
this is an example of a a company called
swivel it's uh you know ride sharing and
so this this is again at a later stage
um because this is at the row stage how
they compare to to others in the market
um and then target audience size of
target audience so um show that you have
an understanding of how many of these
types of customers exist in your Market
um who they are and what their needs are
that you think you can address but also
like use cases so this is an example
from I Uber it's been a little bit
diluted I think but um these are all the
use cases that when Uber was originally
pitching itself it it thought you know
could could make sense so okay you know
your target market is essentially
anybody that ever needs to go anywhere
right so that's really hard to talk
about um so you can say things like okay
probably younger people more tech savvy
Etc but like to help them visualize all
the ways in which this product could be
used it was okay let's talk about trips
to and from restaurants uh trips to the
airport local transport Etc right so use
cases are super important then of course
markets as an opportunity I think um
this slide sometimes of often gets
forgotten but I like to put this just
before just after your your business
model slide where you talk about how
you're going to make Revenue so are you
a subscription business how much are you
charging um how much is your customer
potentially going to pay you um because
the investor can kind of very quickly do
the math in their head to say okay well
based on the market size that you told
me you have um and the number of
businesses that you can reach a number
of customers you can reach with this and
this is how much you're going to make
per customer I can kind of start to
visualize okay well this is how much you
could potentially making first you know
year Etc um so this is an example from
Airbnb again um if there's almost two
billion trips booked worldwide um half a
million of them are our budget are
online um and then this is how much we
think we can take up that market type of
thing um then of course again business
model and financials um so
this was very simple they take a 10%
Commission on each transaction and by
the way here is what the average size of
those transactions looks like right so
an average fee that they would take
again this is way back in the day on an
$80 a night stay um at an average of
three nights is $25 so they have that
data because they already had some
customers at this point and so they can
show this is how much projected Revenue
we have um and then of course very
important your team and your team
strengths I think it's not necessary to
write a ful life bio of your team on the
slide for sure but like pick out the
pieces of who you are in your experience
that are super relevant to what it is
that you're building and if you have you
know logos of places that you've worked
before you can put those on there type
of thing um but I think this is where
you really want to show hey we have like
all the skill sets necessary to bring
this to life um and then depending on
how you know late the businesses do you
have any attaction that you can show do
you have endorsements for example um uh
you know client testimonials Etc that
that of people that have already used
the product um that you can show so
again quick example here um Airbnb I
think or yeah Airbnb which was at the
time called air bed and breakfast um
yeah like what can you show to to to
help these people understand that like
hey people really like this thing and
we're already um Making Waves here right
um and then finally like your your road
map so what's happening next and I think
a road map can be looked at from two
perspectives the the product road map of
like here are the next few things we're
going to build or the next maybe
geographies we're going to expand into
and your your your business or business
model road map of like here are the new
revenue streams that we foresee or the
new Target markets that we think we can
enter um or Target segments we think we
can enter um and yeah this example of
Kareem but you kind of get the idea
right where first we're going to start
in this market um do a land grab then
we're going to launch a consumer product
then we're going to start scale
regionally and then we're going to grow
in other vertical Etc um oh yeah and
then your mission and vision of course
how are you going to get people inspired
um to to join so this is this is our
mission at Stitch um our our overarching
goal is to build a financial system that
works for everyone and and this is
something that is true uh and will be
true in our current market in future
markets when we build more Payment
Solutions right it's sort of like the
overarching thing that drives um us
totally as it is business and I think
that's it wow that was pretty detailed
thank you for taking the extra mile to
add this uh to your presentation and uh
everybody is loving
it the reactions uh so it's almost the
top of the hour so I think we have uh
time for just couple more questions and
just a quick reminder for everyone uh
you will receive the recording within 48
hours and you can find also Tia's
contact connect to her and learn more
about her company Stitch so last two
questions they are also in that line of
thinking how important are the graphics
you mention that but not the in
particular um new generation p TS tend
to be image list yeah so I I would say
what you should do is you should
actually have two versions of your deck
always so there's a version of your deck
that you present when when you're there
in person and you're speaking and then
there's a version of your deck that
you'll send afterward the version you
send afterward should have more
explanation more text more information
because this is something that an
investor will come back and look at
later or share with other people who
maybe weren't there when you were
presenting um so that's important but
when you're actually presenting you want
them to be paying attention to you right
and a little bit less to to the deck
itself I think the unfortunate reality
is like we're all human and so if if an
investor is presented with decks of two
companies that are in all their ways
pretty much the same or similar but one
is like much better designed than the
other naturally they may they may you
know uh lean toward that one so I think
um you always want to put your best foot
forward and always want to make sure
that what you're presenting is clean
that it's um you know like well done and
and graphically thought through and
there's a ton of tools online that can
help you with this um but I'd say like
don't underestimate the power of of good
and solid design and Graphics to help
you with this um because it just kind of
makes you look that much more
professional H yes so there are like few
versions and there was one more uh
question okay yes uh also please uh vote
when you're adding questions please vote
for the questions so we know
uh which ones to ask and more people
want to know uh okay so let's just pick
one
last
um okay
um let's
do this one if investors did you for
asking for advice great uh disqualifying
test if you don't want that investor
investor is are human but so our
Founders so if you find arrogance or
this myness from the investors that is a
real reason to say next but that's not
really a question maybe you can add your
comment no but it's it's true right like
I said it's a it's a two-way street so
you are essentially interviewing them as
much as they're interviewing you because
if successful they'll be part of your
business and part of your company for a
long time so I'd say um yeah I I
completely agree with this um you know
also
kind of think about the fact that
investors probably do get a ton of
requests and things sent at them all the
time so if they decline a meeting it may
not necessarily be because they're not a
good investor so kind of just sus out
the situation and and the tone um but
agree that you should always be also
considering who they are as a
person yes so fair enough uh and tia
before we jump into the networking loue
is there something that we didn't ask
you and would like to
add as for the final of today's
event yeah I think a lot was said it's a
I know it's a tough environment uh out
there these days but but it's definitely
worth it there's a lot of problems left
to be solved so you know if you if you
hear a few knows don't get discouraged
um and actually forums like this are
super important for you to connect also
with other people that are kind of going
through the same thing um so always be
willing to sort of share your experience
and help out another founder because it
could make a big difference for them
thank you thanks again for joining us
and everybody's welcome uh in the
networking you will see networking
tables and also we expect to see you at
our next event you can check them out uh
on our website and sign up for the
newsletter so thanks again and see you
soon bye
everyone
bye
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