Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

Don't Bother with Huge Market Figures - Focus on Value Creation!

23 Oct 2023 · 1 min

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0:33

A short talk advising founders on how to pitch to investors: prioritize demonstrating concrete value creation (bottoms-up unit economics and pricing) and subject-matter expertise rather than repeating large, top-line market figures from reports. Teaching investors through specific calculations positions the founder as an expert investors want to fund.

Chapters

I don't know if there are other products that they're buying that cost as much money. I don't know how much value you're creating for them. Showing me this bottoms up calculation of how many users and how much you can charge them and why teaches me a lot. If you teach me in a pitch, I think of you as an expert and I want to fund experts. So how do people screw up? They quote some report. JP Morgan said that the online e commerce market is 120 trillion and growing. 20. That it's like, who the fuck cares?