When I get an angel pitch, here's my initial funnel:
- Is this person a crackpot?
- Is this person a wannabe?
- Is this vision fundable?
- Is this vision fundable by me?
- Is this vision plausible?
- Is this vision probable?
- Are these people capable of executing this vision?
I've been getting a lot of angel pitches lately that I've been quickly dismissing on #3: is this vision fundable? Frankly, the dismissals are pretty much from a lack of communicating any long-term vision. Here's my #3 sub-funnel:
A. Is this a whim project?
B. Is this a side project?
C. Is this (for lack of a better phrase) a lifestyle business?
D. How does this get to 1Min revenue?
B. Is this a side project?
C. Is this (for lack of a better phrase) a lifestyle business?
D. How does this get to 1Min revenue?
E. How does this get to 10M in revenue?
F. Are they thinking big enough?
F. Are they thinking big enough?
Product demos are key to a good pitch, but in and of themselves they are static, and really don't get anywhere in this sub-funnel. To do that, you need to tell a compelling story about how you're going to be part of a big market.
Of course I may think you're wrong on market or a variety of other things, but communicating a long-term vision is a necessary condition to starting a real funding conversation.
I realize this is a very difficult request. It's easier to try to find a niche within a niche in the app world. And that may make a great business for you. But it isn't a fundable vision.
I'm the CEO and Founder of DuckDuckGo.
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