How to pitch me: 7 investors discuss what they’re looking for in March 2023

The latest series on TechCrunch – "How to Pitch Me" is pretty awesome! As a subscription-based platform, I simply had to spill it here on how insightful the Q&A by Masha Bucher, founder and general partner of Day One Ventures is!

Get ready for invaluable insider info 🚀🔥 Full article is here.

What kind of investment opportunities are you looking for in March 2023?

During a healthy fundraising environment, the founders that do the best often lean into their storytelling prowess and can convince investors with their charisma. They’re the ones who are naturally good speakers and are articulate with their vision.

There’s a second type of founder with a different background. They’re often heads-down, scrappy and resource-oriented. I call them “survivors.” Survivors are often immigrant founders, people of color, women or others from underrepresented backgrounds.

I believe the survivors are the types of founders to back during a downturn. They’ve been pushed to be scrappy and survive their whole lives; they’re especially equipped to handle what the current times demand of them. They’re good at making something out of nothing and are extremely cost-efficient.

I’m looking for paths to monetization, business models and avenues to profitability. Investors are paying much more attention to numbers, business models and how well founders manage finances. Expect many more questions challenging the business model.

I’m looking at how much revenue comes from product quality versus marketing. Founders who generate virality based on the product’s quality show they can make money with little marketing spend.

We love companies with high EBITDA. We love companies like Quinn, which grew to millions in revenue in just a year from launch with viral, zero-cost marketing on TikTok.

How do you prefer to be approached by a founder with their initial pitch: a cold email, a warm intro or another method?

Cold email works great, but it’s surprising how few people can do it right. In a cold email, every single sentence should be convincing me to take a meeting. With every word and every sentence, you need to create the desire for an investor to meet you in person. You have to show a clear reason why they need to meet you now, not next month.

Clearly articulate your background, how big your market is, your traction and signals of external validation from advisers, mentors, investors and employees who used to work at reputable companies.

Most importantly, you need to communicate: Why now? Why should an investor meet you now and not in two months?

An introduction from a successful founder from our portfolio or network is valuable, too. If the founder of a unicorn enterprise company introduces me to a founder in vertical SaaS, I’ll believe it’s a high-quality founder and be more likely to take a meeting.

What’s one traditional fundraising tactic founders should remove from their toolkit — something that no longer works but is still a common practice?

Never send an email blast to investors while fundraising, especially using tools that make it feel like the email is sent by a robot. Corporate, robotic-looking emails make me feel that a company is run by robots. I’d never take it seriously.

It’s obvious when someone is using a shortcut and hasn’t done any research about our work or portfolio. It’s inefficient and ineffective.

The best emails I receive clearly articulate their most impressive relevant background, what they’re building, why I need to take a meeting now and signals of external validation (angels, other investors).

Tell us about the best pitch you’ve received recently. When during their presentation did you realize you were going to invest?

One of the most memorable pitches I’ve ever received was through Instagram DM. It was from a student studying physics at a good university. He wrote a genuine, serious DM about the impact he wants to make and said that he’s ready to fly anywhere in the world to meet for coffee.

Two years later, he’s running a multibillion dollar company and we’re one of their early investors.

Can you share one piece of advice that can help a first-time founder stand out?

Always prove why investors should care about you right now: what will they lose if they don’t invest in you? Founders need to have a good response to this question to keep investors’ attention. Make it as timely as possible.

This is important not just in the initial conversation but across all conversations. The best founders keep this momentum going every day. That’s what it means to be a Day 1 company: What the company is doing every single day is the most important thing in the universe.

You don’t stop answering “why now?” when you receive a check. Founders need to keep the momentum so the best investors are incentivized to continue helping them.