5 Must-Answer Questions for Founders From an NEA Partner
▼ Summary
– Tiffany Luck emphasizes that a VC pitch should assess founder-investor fit, focusing on “The What” (the product), “The Why” (founder’s unique solution and timing), “The Who” (team), and “The How” (execution plan).
– “The What” slide should clearly define the problem, existing solutions, and the startup’s disruptive potential, ideally including a product demo for clarity.
– Founders must address two “Whys”: their personal motivation (“Why you”) and market readiness (“Why now”), demonstrating obsession and market dynamics.
– “The How” section should outline milestones, MVP progress, user feedback, and potential pivots, showing adaptability and learning from early challenges.
– Numbers are crucial, covering market size, traction, cash burn, runway, and the funding ask, with storytelling to explain growth potential and customer appeal.
Crafting a compelling pitch is crucial for founders seeking venture capital, and understanding what investors look for can make all the difference. During a recent TechCrunch event, NEA partner Tiffany Luck shared her framework for structuring an effective pitch, breaking it down into five essential questions every founder should answer.
The first step is defining “The What”, clearly articulating the problem being solved and how the proposed solution stands out. Luck emphasized that a live product demo can be far more impactful than slides alone. “Seeing the product in action helps investors grasp its potential almost instantly,” she noted.
Next comes “The Why,” which has two layers. Founders must explain their personal connection to the problem and why their approach is unique. Investors look for obsession, a deep, unwavering commitment to solving the issue. The second layer, “Why now,” focuses on market readiness, highlighting trends or gaps that make the timing ideal.
“The Who” shifts attention to the team. Luck stressed that investors want to see a group with complementary skills and shared conviction. “It’s not just about individual talent but how the team collectively envisions the future,” she said.
“The How” covers execution strategy. Founders should outline key milestones, early user feedback, and any pivots made along the way. Transparency about challenges and lessons learned builds credibility. “Pivots aren’t failures, they show adaptability,” Luck added.
Finally, numbers play a critical role. Investors expect clarity on market size, traction, burn rate, and funding needs. “Data should tell a story,” Luck explained. “Show why customers love your product and how you’ll scale sustainably.”
Luck compared founding a company to climbing Everest, full of obstacles, but achievable with the right preparation. By addressing these five elements, founders can craft a pitch that resonates with investors and sets the stage for long-term success.
(Source: TechCrunch)
