Some startups solve incredibly difficult problems, and with that often comes incredibly complex technologies. Despite the intelligence needed to solve complex problems, I can't tell you how many times I have seen founders stumble over their words and not be able to explain what their product actually does and why it's better than other solutions on the market. Let's take a look at some of the biggest mistakes founders make when talking about their solution and how to avoid them.
Sell Solutions Not Technologies
The biggest mistake I see founders make when talking about their solution is that they overload their audience with technical jargon. Often times founders have a passion for what their doing, that's why they decided to start the business. They know the ins and outs of their industry and why their solution is better than everything else on the market. One small problem, there is a good chance the investors your pitching to don't know the industry even half as good as you do. If you overload them with jargon and technical descriptions you will almost certainly confuse them. I have left so many pitches where the phrase "I have no idea what they actually do" came up, and that never goes well for the founders.
Your job as a founder is to sell investors on your solution, not your technology. You don't need to educate them on the intricacies of your technology, but you do need to speak their language. What do they want to know: Why would anyone buy what you are trying sell? For example, let's say you have a software product that allows providers to automate prior authorizations. Don't start off by going into large language models (LLM), natural language processing (NLP), and artificial intelligence (AI). Instead simply start off by saying something like: "Providers spend 16 hours a week on prior authorizations. Our solution cuts this time in half and gives them time to see more patients". It's simple, direct, and clearly articulates the value of your solution. If your investors want all the little details behind your technology you can include those slides in the appendix, but just know that information is more of a due diligence request. You need to get investors on your side early on in your pitch and overly technical jargon typically isn't the way to do it. Sell investors on your SOLUTION not your technology.
Summary
The most important thing to remember when pitching your solution is to keep things simple. Remember your audience probably doesn't know the industry as well as you do and clearly articulate your value to them. If investors like you and your idea, there will be plenty of time to discuss all the gory details of your technology. If you need help breaking down your solution in way investors can understand, feel free to reach out to us at InfleXion Point. We are happy to help!
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