How to pitch your startup to an investor effectively

Any pitch to an investor has one task at the start: to spark enough interest that they agree to the next step. Selling the company in a single email or a single minute is impossible, and that takes half the pressure off. Let's go through three formats.

Email. The goal of an email is not a deal but a reply. That's how Aaron Harris of Y Combinator puts it, and the Stripe Atlas guide says the same. Hence the rules. The subject line should be specific: instead of “Introduction,” write “40% monthly growth in restaurant software.” Keep a simple structure in the body of the email: why you are writing to this particular investor, one line about what the company does, two or three facts about your results, the round details and one ask. Ask not for money but for a short conversation: Michael Seibel of YC reminds you that you are starting a relationship, not closing a round. Write so that a partner can forward the email to a colleague without changing anything in it. A warm introduction works best, so if you have a mutual acquaintance, write them a short forwardable email asking for an intro.

A message on a messaging app or social media. The same principles apply here, only even more strictly. Three or four sentences: who you are, what you do, one strong metric and the question “Could I tell you more on a 15-minute call?” No presentations attached unless requested.

The elevator pitch. Seibel identifies two formats. 30 seconds: what you do, what your market is and what results you have. Two minutes: on top of that, your unique insight into the market, your business model and your team's experience. There's no need to talk longer: in his words, the more you talk, the more chances you have of saying something they won't like. For the content, follow Kevin Hale of YC: an idea is a problem, a solution and your special insight; you should start with the problem, not the technology, and explain it so that even your mom would understand.

One rule works for all three formats: rehearse first, send second. If you can't clearly state the problem, the solution, the result and the ask in half a minute, the problem is not the format but the wording itself.

Sources:

1. Stripe Atlas — How to reach out to investors for your startup
2. Echai Ventures (Michael Seibel and Aaron Harris, YC) — How do I write a cold email to an investor
3. Mean CEO — Cold Email Templates That Got Meetings with Top VCs
4. YC, Michael Seibel — Lecture 19: How to Talk to Investors and Business Insider
5. YC, Kevin Hale — How to Pitch Your Startup (summary)