Essential Pitching Skills for Founders with Thea Sokolowski

Summary

The 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

00:00

🌟 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.

05:01

💡 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.

10:02

🤝 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.

15:04

📈 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.

20:04

🛠️ 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.

25:05

🌐 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.

30:07

📊 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.

35:08

🎨 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.

40:10

🤔 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.

Keywords

💡Investment

Investment refers to the act of committing money, time, or other resources to a particular venture or enterprise with the expectation of achieving a profit or return. In the context of the video, it is the financial backing that startups seek from investors to grow their business. The speaker discusses how investors evaluate potential investments, focusing on the team's adaptability, market understanding, and the business's potential for profitability.

💡Pitch Deck

A pitch deck is a brief presentation that provides an overview of a business, typically used to convince potential investors to fund the venture. It includes slides that cover the company's value proposition, market size, competitive landscape, financial projections, and team capabilities. In the video, the speaker emphasizes the importance of a well-designed pitch deck in securing investment, as it can make a significant difference in an investor's decision-making process.

💡Startup

A startup is a young company that is typically seeking to develop and market a new product or service, often in a competitive and rapidly changing market. Startups are characterized by innovation, agility, and high growth potential. In the video, the speaker shares insights on how startups can position themselves effectively to attract investment by crafting a compelling story and demonstrating their understanding of the market and its needs.

💡Market Understanding

Market understanding refers to the comprehensive knowledge a company has about its target market, including customer needs, preferences, behaviors, and the competitive landscape. This understanding is crucial for a startup to tailor its product or service to meet market demands and to identify opportunities for growth and innovation. In the video, the speaker highlights the importance of investors seeing a deep market understanding in the startups they consider investing in.

💡Adaptability

Adaptability is the ability of an individual or organization to adjust and respond effectively to changes in the environment or market conditions. For startups, adaptability is a key trait that investors look for, as it indicates the team's capacity to navigate challenges, seize opportunities, and evolve their business model as needed. In the video, the speaker emphasizes the importance of showcasing the team's adaptability to potential investors.

💡Business Model

A business model describes the strategy and plan a company uses to generate revenue and make a profit. It outlines how a company creates, delivers, and captures value, and is a critical component of a startup's pitch to investors. The speaker in the video discusses the need for a compelling and viable business model that demonstrates how the startup intends to become profitable and return investment.

💡Relationship Building

Relationship building refers to the process of establishing and nurturing connections with key stakeholders, such as investors, customers, and partners. In the context of the video, the speaker stresses the importance of building and maintaining strong relationships with investors, as these relationships can lead to long-term support, valuable connections, and potential future investment.

💡Why Now

The concept of 'Why Now' refers to the rationale behind the timing of a business venture or investment. It answers why the current moment is the optimal time to launch a product, enter a market, or secure funding. The speaker in the video emphasizes that startups need to clearly articulate why their solution is needed in the present market context, and how current trends or market conditions make their offering timely and relevant.

💡Value Proposition

A value proposition is a statement that communicates the unique benefits a product or service offers to customers or investors. It explains why a particular solution is worth considering, highlighting the value it brings to the market. In the video, the speaker discusses the importance of having a clear and compelling value proposition that resonates with investors and demonstrates why the startup stands out from its competitors.

💡Fintech

Fintech is an abbreviation for 'financial technology' and refers to the use of technology to improve and automate financial services. It encompasses a wide range of innovations in the payments, banking, and investment sectors. In the video, the speaker's work in fintech, particularly in African markets, is highlighted as an area of expertise and a key focus of their career.

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