(4) Startups: How to Communicate Traction... by Brendan Baker
In the last year I've seen thousands of startup pitches while working with the AngelList crew, coached 100+ founders on how to communicate their product, traction and team, and worked with startups in fine institutions like 500 Startups, AngelPad and Bootup. I've also dissected 500+ emails from a recent seed round fundraising to map investor response. Here's what I've learned. Through thousands of pitches, I've found that fewer that 5% tell a great traction story. Here are 10 tips that can help. But first, let's get one thing straight - this is the only thing that matters to investors: Venture investors invest in momentum. (Here I'll bring in Alec Baldwin for a little help. . Here we go. 1) Compress your X Axis The X axis is how long you've been working. As an investor, who would you bet on? Consider these two messages, for the same consumer web product: "We started in 2008, and have 5000 users." Here, an investor's thinking: '5000 users/36 months = painfully slow growth.' More examples: OK.