Former NFL quarterback, now partner at NEA, Tiffany Luck, gives one of the most potent analogies. She compares the lessons of founding a company to the thrills and challenges of extreme sports. She likens the entrepreneurial journey to summiting Mount Everest. Along the way, she sheds light on the valleys and peaks every founder needs to cross to reach their final destination. Luck believes that every founder should address critical questions related to their motivation, team dynamics, and the solutions they aim to provide in their pitches to investors.
In her view, understanding “The Why,” “The Who,” “The What,” and “The How” can significantly enhance a founder’s chances of success. Every piece is a building block of a pitch that captures the attention—and the imagination—of any investor.
The Importance of “The Why”
Luck reiterates that “The Why” is double-edged for founders. First, it’s about telling their origin story and their unique perspective on the problem that leads to the solution they bring. This story captures the spirit of the founder and helps paint a picture of why they are passionate about what they do.
“The Why you are the right person for the job and why you have a unique solution,” she states, is crucial for establishing credibility in the eyes of investors. First, founders need to make their ask very clear. They need to paint a picture of the struggles they’ve been through and the prospects on the horizon.
Luck highlights the importance of framing this narrative effectively: “Why is now the perfect time to do it.” So founders need to tell an urgency and relevant story in their pitches, establishing the timeliness of their ideas in order to bring investors along.
Understanding “The Who”
Luck argues that founders need to be prepared to answer “The Who”. This is where this piece of the pitch gets to the composition and dynamics of your team. Founders should discuss who they have recruited to help realize their vision, highlighting how each team member’s skills complement one another.
“Who have you recruited to do this crazy thing with?” she challenges founders to consider. This big question highlights the team sport aspect of entrepreneurship and the impact a diverse, well-balanced, and complementary team can have in moving a startup’s mission further. Furthermore, Luck notes that everyone in the team should be genuinely passionate about the product’s mission, as this shared obsession can significantly influence the startup’s trajectory.
Articulating “The What” and “The How”
This section should clearly articulate the problem the startup aims to solve, how it affects people, and what existing solutions are available. Importantly, it should indicate opportunities most primed for disruption.
“The What sets the stage, telling the investor what the problem is, how it affects people, followed by what solutions exist today and where lies room for disruption,” she explains. This clarity helps potential investors gauge their interest in the market opportunity and the potential impact of the proposed solution.
The last piece Luck wants to highlight is “The How.” This means having honest conversations about the milestones we’ve hit along the way and explaining clearly what it will take to achieve more ambitious future targets. Founders should convey how they are currently progressing towards their objectives: “How are you going to get there? How are you getting there today? How will you get there over time?”
Luck compares this process to climbing Everest: “You’re going up on milestones, different camps. You’re encountering challenges, you’re weathering storms, and you know, eventually you’re trying to make it to the top, to the summit.