Startup Funding Espresso – Put the Why Before the How

Put the Why Before the How

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In pitching, it’s important to start with the why before diving into the how.

The founder often dives straight into how things are going to work.

In a biotech startup, the founder will jump to how their therapeutic interacts on a molecular level. 

This often puzzles the investor who is not familiar with the science behind the project.

To solve this problem, first start with the why.  Why is this important?

State up front the meaning of it.

For example, start with a challenge such as, “the common cold can't be defended against because it mutates too fast.”

State why the therapy can be effective, such as “our therapy prevents the common cold from mutating.”

Then dive into the details about how the therapy works.

Founders who go straight into the details without stating the challenge to be solved and what benefit the solution brings fail to communicate their value proposition.

State the challenge and solution at a high level in layman’s terms so everyone will understand it. 

Consider these steps in your pitch presentation.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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