Summary

In this episode of Pitch Deck, Nick Telson-Sillett, founder of trumpet, interviews Peter Nixey, an operator, investor, and AI expert. Peter shares his interest in businesses with clear value propositions and emphasizes the importance of solving real problems that people are willing to pay for. He also discusses his venture builder, Inaugural, which focuses on creating AI companies. Peter explains the different layers of AI and the potential for builders to create applications on top of AI models. He highlights the value of AI in specific verticals and provides insights into the key elements of a pitch deck, including clarity of message and specific storytelling.

Takeaways

Focus on businesses with clear value propositions and solve real problems that people are willing to pay for.

Consider the different layers of AI, including base models, builders creating applications on top of models, and traditional machine learning.

Explore AI use cases in specific verticals, particularly in unattractive jobs that are repetitive and can't be easily automated.

When creating a pitch deck, prioritize clarity of message, take investors on a journey, and tell specific stories about what you're building.

Chapters

00:00 Introduction and Background

01:03 Interest in Businesses with Clear Value Propositions

06:26 Inaugural: A Venture Builder for AI Companies

10:36 Different Layers of AI

13:45 Builders on Top of AI Models

20:41 Key Elements of a Pitch Deck

24:17 Anecdote from Paul Graham

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Summary

In discussion with Nick Telson-Sillett, founder of trumpet, with Fred Soneya, an operator turned VC, discusses his approach to pre-seed investing and what he looks for in early-stage companies. He focuses on investing in businesses that have identified a pain in the present and are starting to identify a buyer who is willing to pay for a solution. Fred emphasizes the importance of understanding the market, defining the ideal customer profile, and having a revenue-driven mindset. He also discusses the value of vertical SaaS companies and the need for innovation and go-to-market strategies. When evaluating founders, Fred looks for grit, determination, and a deep understanding of their business. He advises founders to approach relevant funds with personalized outreach and to create pitch decks that are short, aesthetically pleasing, and designed to generate intrigue.

Takeaways

Invest in businesses that have identified a pain in the present and are starting to identify a buyer who is willing to pay for a solution.

Understand the market, define the ideal customer profile, and have a revenue-driven mindset.

Vertical SaaS companies offer value by going deep into a specific industry and becoming the fundamental platform for that vertical.

Grit, determination, and a deep understanding of the business are key qualities to look for in founders.

Approach relevant funds with personalized outreach and create pitch decks that are short, aesthetically pleasing, and designed to generate intrigue.

Sound Bites

"Investing in businesses that have identified a pain in the present."

"Vertical SaaS is about going deep into a domain and building an end-to-end SaaS product for that market."

"Gritty founders who understand their business end to end."

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Summary

Kirsten Connell, an investor at Octopus Ventures, shares insights on pre-seed investing and what investors look for in startups. She discusses the importance of traction and metrics at the seed stage, but notes that pre-seed investments are less impacted by this shift. She emphasizes the need for exceptional founders who have identified a real need, can build an MVP, and have a clear plan to take their product or service to market. Kirsten also discusses the challenges and opportunities in B2C startups, the importance of founder-market fit, and the impact of competition on investment decisions.

Keywords

pre-seed investing, traction, metrics, exceptional founders, MVP, go-to-market, B2C startups, founder-market fit, competition

Takeaways

• Investors are more focused on traction and metrics at the seed stage, but pre-seed investments are less impacted by this shift.
• Exceptional founders who have identified a real need, can build an MVP, and have a clear plan to take their product or service to market are highly sought after.
• In B2C startups, it's important to have a strong value proposition and a clear understanding of the market and route to market.
• Founder-market fit is crucial, whether the founder has first-hand experience in the industry or is passionate about solving a problem.
• Competition is a factor to consider, but it's not the sole reason to bow out of investing. Other factors such as market size, product roadmap, and business model should also be taken into account.
• When reaching out to investors, a warm introduction from another founder can be more effective than a cold outreach. Concise and visually appealing pitch decks that highlight the founder's standout qualities and the size of the opportunity are more likely to capture investors' attention.

Titles

The Importance of Founder-Market Fit

The Shift in Expectations for Seed Rounds

Sound Bites

"You're still looking for an exceptional founder who's identified a real need, can build an MVP, and has got line of sight of how they're going to take that product or service to market."

"Founders who truly understand their route to market and have a deep understanding of their early adopters are more likely to succeed."

"In B2C startups, building a strong brand and ensuring product retention are key challenges."

Chapters

00:00 Introduction to Kirsten Connell

03:24 What Investors Look for in Pre-Seed Startups

08:52 Challenges and Opportunities in B2C Startups

12:38 The Importance of Founder-Market Fit

23:37 Tips for Reaching Out to Investors and Creating Pitch Decks

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Pitch Deck is coming back! Some news from Nick about what is round the corner for the re-booted Pitch Deck.

Pitch Deck is sponsored by trumpet

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Jay is a serial entrepreneur and has founded 3 successful businesses worth over $500m: Yieldify, Reachdesk & Screenloop

He now spends his time in 3 areas: (1) Building tech companies through his startup studio Blissgrowth (2) Co-hosting the podcast Happy Millionaire - which is in the top 10 in Apple and Spotify: It's 2 friends having fun and talking about startups, success and happiness stories (3) Angel investing - he has done 40 deals so far.

His passion is to bring more joy to work and loves talking about entrepreneurship, happiness whilst having fun.

Episode Links:

Sponsored by trumpet - turning better buyer journeys into more revenue

Blissgrowth

Reachdesk

Screenloop

Jay's Linkedin

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Founding Partner of the multi award-winning Concept Ventures, largest dedicated pre-seed fund in the UK ($60m).

Reece has invested in 80+ start-ups from idea to unicorns (6 in total) and been ranked as one of the Top Asian Tech Investors on numerous occasions by Diversity UK.

Prior to founding Concept, Reece built and sold several start-ups in the software space, 1 of which was successfully exited, 1 a complete disaster and 1 is still going today.

Passionate about giving back, Reece has created the Concept Venture Pledge where a percentage of Concept's exit profits are donated to a social cause of the founder’s choice. He has also been selected by the FT as one of the top 100 BAME leaders in tech for his consistent work in helping promote diversity in the UK tech sector.

Episode Links:

Reece's Linkedin

Concept Ventures

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Chris founded Divido in 2014, now the world’s largest white-label platform for Buy Now Pay Later. As founder/CEO Chris took the company to 10 countries and onboarded over 100 clients including Mastercard, HSBC and BMW. They have raised over $50m are recognised as the 83rd fastest-growing company in Europe by the Financial Times '21 and achieved 1250% revenue growth over three years until 2020. Chris is also an investor with Seedcamp, who have backed over 350 startups including the likes of Revolut and Transferwise, Entrepreneur in Residence at HSBC and Fellow at Primary Venture Partners - Early-stage investor in startups based in New York.

Episode Links:

Dividio

Primary Venture Partners

trumpet

Chris on Linkedin

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Amory started life out in investment banking before moving into the energy sector and VC moving to Shell Ventures as Venture Principal. Shell Ventures an arm of the oil company, invests in early-stage companies that have reached proof-of-concept focused on fintech/insurtech/mobility and clean tech. He is now founder of his own $20m fund, D2 and looking to do 10 deals this year and a further 10 next year, focused on lean startups that don't need further funding to get to Series A and then the founder can decide whether they want to go down the VC route or grow from profitability - and has been an angel investor in the past

D2 is a different type of venture fund. They provide early stage start-ups with equity capital and also offer debt as they scale. Their objective is to bring the right type of capital at the right time to help you own more of your business at exit.

Episode Links

D2 fund

trumpet - Create buyer journeys that drive more revenue

Amory on Linkedin

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