Pitch Day: What happens below the waterline
By Gary Trauner
Finalist entrepreneurs stand onstage at the Center for the Arts auditorium, presenting their entrepreneurial ventures to the audience and a panel of judges, vying for cash awards and looking to secure investment in their respective companies.
Maybe you’ve attended over the years. Maybe you’ve just heard about it from friends or co-workers. Maybe you’ve heard the tagline “Like that Shark Show, Teton Style.”
For the general public, Pitch Day is an event that takes place on a specific day for several hours. Yet those of us at Silicon Couloir view Pitch Day as the tip of the iceberg. The public sees the 10% or so that’s above the waterline. Internally, our staff, the finalists and the volunteer coaches combine over several months to craft the 90% the public does not see. To continue the analogy, it’s the 90% of Pitch Day that is below the waterline that makes the publicly visible 10% a meaningful and quality community event.
I thought it might be interesting in this column to provide readers with insight into the world of Pitch Day below the waterline.
First, why does Pitch Day exist? The answer is pretty simple: Most entrepreneurial ventures eventually require significant funding from outside sources to succeed, and that means investors. Most of us have heard of venture capital — firms that have raised large sums of money to invest in startup and growth companies like Apple, Google, etc. Generally, venture capital firms do not invest in ventures that are in the developmental stage (or “pre-revenue” — just what it sounds like, not yet bringing in any money from sales) or the early post-revenue stage (bringing in some revenue but not enough to sustain the venture for the long term) of their life cycle. These stages are called the “pre-seed,” “seed” and “Series A” stages. To raise funds at these stages, entrepreneurs generally must turn to wealthy individual investors. These individuals are known as “angel” investors. Pitch Day provides select entrepreneurs/ ventures the opportunity to make their case to potential angel investors, with the added incentive of a possible cash infusion into the venture from prize money.
Most entrepreneurs are, rightfully, consumed with building and growing their venture. Generally speaking, creating a “pitch deck” to present to potential investors and actually presenting in front of such investors is not a core competency.
And that’s where the unseen part of the iceberg comes into play.
It starts with applicants submitting an initial deck with a standardized number of slides, each slide addressing a specific topic that, when taken together, paint a picture for potential investors to analyze and assess. Topics include: the problem being addressed, the proposed solution to the problem, the addressable market and value proposition, competition and differentiation, financial projections and the management team (There is a saying in the investing world: Investors buy management, not ideas.)
A Selection Committee composed of a volunteer group of business experts recruited by Silicon Couloir staff sifts through applications and views in-person presentations to choose the finalists who will present at the Center for the Arts. The focus for the Selection Committee is less on the quality of the initial deck/ presentation and more on the perceived prospects of the proposed venture. Once finalists are chosen, the real work begins. Finalists receive multiple coaching sessions over several months to hone their deck content and design, presentation skills, business model and viability. Silicon Couloir utilizes a rotating cadre of expert and experienced coaches to provide feedback and constructive advice. Most finalists are surprised at their progress from their first presentation to the last coaching session prior to the actual Pitch Day event.
The last piece of the puzzle is put in place onstage on the evening of Pitch Day. The Silicon Couloir team assembles a diverse panel of expert judges for the purpose of assessing the entrepreneurs and their ventures through the process of constructive questioning. This is the 10% above the waterline — engaging, interesting and, yes, a bit challenging for the finalists.
Building a successful company from scratch is a demanding and ambitious effort. Frankly, the odds are generally stacked against success. Yet one hallmark of vibrant communities is a high level of entrepreneurial activity. And while Silicon Couloir hopes Pitch Day is entertaining to the general public, it is the work done below the waterline that furthers Silicon Couloir’s mission of empowering entrepreneurship for a healthy, vibrant community.