Less is more to hook investors in learning about your startup

Told they have 30 seconds for an elevator pitch to investors, most founders speak as fast as they can to pack their full 5 minute pitch into half a minute. Their enthusiasm is sincere, but sorry, tm;spa (too much, stopped paying attention).

The elevator pitch isn’t just an exercise — it’s your introduction. It’s your first and most important pitch. Here’s how to nail it and hook investors.

The idea of the elevator pitch goes back to the days when journalists and writers pitched stories to editors during the ride up to the top floors. It’s been adopted into the concept that you have Elon Musk or Warren Buffet cornered in the elevator for the 30 second ride up to the penthouse.

Although you’re unlikely to run into Mark Zuckerberg on the elevator, there are many occasions when you’ll need a strong elevator pitch.

You might be at a reception of a startup event filled with angels and VCs. The woman in front of you in the drinks line casually asks, “What brings you here?” That’s your cue that you have a few seconds to wow her.

If you start in with your problem, solution, and market size, she’ll nod, say “sounds wonderful,” and disappear as soon as the bartender hands her a beer.

Or I’ve invited you to join me as a guest to observe an angel pitch event. Although you’re not scheduled to give a formal pitch that day, you’ll have a chance to introduce yourself to the group. You need to make it quick. You’ve only got a few breaths to make an impression before we move on to the next guest.

Or you’re at a wedding and the groom’s uncle is a venture capitalist. He asks you what you do. You’ve got one sentence to get invited to send him a pitch deck tomorrow.

Or you’re connecting with an investor on LinkedIn. You have one chance to get us to accept your connection request. Don’t blow it with a page of detail that we won’t read.

These are the situations where you need an enticing elevator pitch, and if you’re getting out and meeting people, as a CEO should, you’ll be using your elevator pitch dozens of times each day.

The elevator pitch isn’t a formal pitch and shouldn’t sound like one. It’s your introduction, but more than simply introducing yourself, it’s your one chance to grab an investor’s attention and get them begging for more.

This isn’t the time to attack with a full-court press from which they’ll try to find a polite way to escape. This is a seduction. Get them to want you.

As CEO, everyone you meet falls into one of four categories: potential customers, potential employees, potential investors, and useless people. Find out which you’re talking to first, then use an appropriate introduction to plant the seed that they need to find out more about your startup.

The point of the elevator pitch is not to get someone to write a check. It’s to get them interested in receiving your pitch deck.

The point of sending a pitch deck is not to get someone to write a check, but to get them interested enough to invite you to give a full pitch. The point of the pitch is to get them interested enough to spend a half day with you in a deep dive into all the details of your startup. The point of the deep dive is to get them interested enough to begin the diligence process. Finally, at the end of the diligence process, you may receive an investment. Every step is merely a prelude to the next.

So relax and stop trying to tell your entire story in 30 seconds, or 11 slides, or even 5 minutes. Tell us enough to get us excited and yearning to learn more.

For the elevator pitch, you have time for between one and three simple sentences. So, introduce yourself, CEO or founder of your startup. Then mention the one thing most likely to pique that investor’s interest.

The one detail to mention will be different depending on who you are talking to. A financial investor will be more interested in customer traction while an industry specialist may find the technology more interesting.

Here are a few examples:

  • Hi, I’m DC Palter, founder of Paltergeist Industries. This is my newest startup after a huge exit last year.
  • Hi, I’m DC Palter, founder of Paltergeist Industries. We’re taking carbon dioxide out of the air and turning it into building materials.
  • Hi, I’m DC Palter, founder of a climate tech startup. We’re just about to close our latest funding round after a big investment by Khosla Ventures.
  • Hi, I’m DC Palter, founder of a climate tech startup. We’ve just signed a deal with Ford to use our advanced battery diagnostics.
  • Hi, I’m DC Palter, founder of a startup cutting the price of water purification by 80%.
  • Hi, I’m DC Palter, founder of a climate tech startup. Our sales are growing 43% month over month and we’ve just opened our next funding round.

What would your reaction be to hearing one of those introductions? For me, they would set me drooling, following the founder around the room and begging him to send me more information.

Of course, I made up particularly attractive conditions. Most likely you’re not in negotiations with Ford yet, may not even have any sales, and can only dream of closing your current round with a big check from Khosla.

But you have something exciting — a co-founder or board member with an impressive pedigree, a big name customer, an SBIR grant to develop the technology, or simply an important solution to a critical problem. Whatever it is that will get people excited, find a short, simple way to say it.

Notice my examples didn’t launch into a history of climate change or problems in the industry, didn’t really describe the product or market, didn’t talk about market size or competition, didn’t even mention the investment. If the person is interested, they’ll ask. If not, move on.

Once you have an elevator pitch that’s pulling people in, when you get invited to give a full pitch, don’t revert to the boring presentation.

Use your elevator pitch as the introduction to your full pitch, and build on top of it, explaining why sales are growing 43% or why Ford is interested in using your technology. Even the full pitch is but one step in the investor seduction process.

Here’s the elevator pitch for my novel: I guarantee it’ll be the most fun you’ll ever have reading about Silicon Valley.

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