For many entrepreneurs, getting a green light with Y Combinator is a dream come true. The famous startup tech incubator gives entrepreneurs the backing they need to actually make it in Silicon Valley or wherever else they set up shop. However, a successful pitch to Y Combinator is akin to passing the bar the first time around: It’s incredibly stressful, you don’t really know what you’re doing no matter how well you prepare, and you only have one shot. Luckily, there’s good news to anyone who’s taken the bar before (or any other stress inducing test): You only have two and a half minutes to pitch your ideas to Y Combinator if you pitch at one of their events. For some people, this sounds like a relief. For others, it ups the ante.
While it’s true that 150 seconds isn’t long, think of those seconds as working in your favor. The heavy hitters at Y Combinator aren’t out to get you; in fact, they’re looking for the same thing you are. A great idea. Recently at the Computer History Museum based in (where else?) Mountain View, Califorania, 59 entrepreneurs had 150 seconds each to pitch their ideas. The ones that were accepted had a few things in common. Here’s what you can learn from these newly minted Y Combinator startups:
- Introduce yourself in one sentence
You don’t need bells and whistles here—remember, you just have 150 seconds. Include your name, the company name, and a brief note of what the company does. Taglines are common, and if they’re solid they can work. If your business has taken a current product or service and does it better, you can use that other product to let investors know instantly what you do. For example, one of the pitches dubbed compared itself to AWS (Amazon Web Services) for a different demographic which, in the tech world, everyone instantly understands.
- A brief background
Investors want to know more about where you, your team and your company came from. Keep the founding story short, sweet, and engaging. This is where investors figure out whether you have similar backgrounds, values, and missions. Often times, pointing out how you noticed a problem or disparity is a great start to a background story—a story in which one of the investors may relate.
- Talk about today’s problem(s)
Startups solve a current disparity, so educate investors on the facts and figures. Some things they may already know, and you can reiterate quickly. However, investors may not know the nitty gritty details which is where illustrations and statistics can come in handy.
- Size matters
The size or potential size of the industry and demographic is critical. This is how investors figure out if there’s money to be made, if the industry size is healthy enough to support the kind of growth they’re looking for, or whether you’re in a niche that’s just too small to be profitable. Run your numbers before they do.
- Progress report
What have you done lately? How is your revenue, how many people are downloading your apps, what’s your user count? These revenue figures are numbers that investors can understand. This is where you state just the facts, not projections. Bear in mind that investors know you’re in the early stage, so miracles aren’t expected, but multi-digit increases are common.
- Case study reports
Have you secured some big name clients? Hopefully you have, and now is the time to show them off. Do a logo slide share, name drop, and otherwise peacock yourself.
- One more, for the cheap seats
Repetition, repetition, repetition. It’s likely that investors are hearing dozens of pitches, and even a great one can get lost in the white noise. End the way you started – with your name(s), tagline, and some interesting facts.
Really want to stand out? Wear something interesting but suitable to your startup – and point it out. It’s a silly trick, but helps you stand out from the crowd.