Let me tell you something.

Investors asking ‘Why now?’ is like asking your mom why you should clean your room.

‘Because it’s a mess and it’s not going to clean itself!’

How to Prove Good Timing to Investors

Why Read:

• This article provides valuable insights for startup founders to effectively address the crucial "Why now?" question when pitching to investors.

Featuring:

• Sahil S (@sahils_r), VC at Stedu Fund

• Link: 

  “How to Prove to Investors That This Is the Right Time and You're the Right Company? | VC Jobs”

Key Concepts and Tactics:

• Addressing the "Why Now?" Question:

  • Point: Explain to investors why your startup is launching at this specific time.

  • "Why wouldn't it have been possible to have built the company five years ago? Why would five years from now be too late? The answer is often related to something that is shifting and changing, either in the market or with the technology layer. Anchoring your company with a good 'Why now?' slide is a great addition to your story."

• Creating a Sense of Urgency:

  • Point: Demonstrate that your startup is addressing an immediate problem.

  • "Showing that you know why you're launching now as opposed to any other time will create a sense of urgency: Investors won't want to miss out on a business that's solving what they see as an immediate problem. It's your job to highlight the ways your company can address those issues and why now is the right time to do so."

• Understanding Market Timing:

  • Point: Identify and leverage significant market trends.

  • "In the words of Wayne Gretzky (Ice hockey player), you want to be skating to where the puck will be, not where the puck is. The 'Why now?' question can be answered in several ways, but it usually boils down to at least one of these three things:

    • technology timing

    • market timing

    • or regulatory timing."

• Highlighting Your Team's Experience:

  • Point: Use the "Why now?" narrative to emphasize your team's expertise.

  • "It's an opportunity to remind investors how your team has been in this industry for a long time. Something like, 'I saw all of these shifts happen when I was a VP of investment banking at Goldman Sachs for 15 years,' is a great way to remind the investors that you have both experience and in-depth domain knowledge."

• Focusing on Future Trends:

  • Point: Use past data to project future trends and align your startup with them.

  • "The 'Why now?' is partially about history, but remember that it's not a history lesson; it's about trends. You can use past data and innovation to draw a trend line toward the future. Combine that with what your company is doing and where it is going."

  • "The perfect 'why now' slide has a fast-moving puck and a startup moving at breakneck speed to intercept it where it's going to be in five years."

5 GTM Principles Founders Must Know

Why Read: 

• This article offers crucial insights for startup founders on validating assumptions, focusing on specific market segments, aligning customer profiles, and engineering growth loops.

Featuring:

• Maja Voje (@majavoje), Founder & Investor at Growth Lab

Link:

• “5 GTM Principles You Should Know as a PM”

Key Concepts and Tactics:

1. Validate Assumptions Quickly:

   • Point: Validate assumptions early in the Go-to-Market (GTM) process to make informed decisions.

   • "The sooner you start validating your assumptions, the more informed decisions you can make. World-class GTM teams launch many A/B tests and experiments before MVP ever sees the light of the world. Unless you build in complete stealth mode, doing this will help you collect evidence to make your decisions with more confidence."

2. Implementing the Beachhead Strategy:

   • Point: Focus on a small, specific market segment that you can dominate quickly before expanding.

   • "Start small. Do not be afraid to go super-specific here. If your beachhead segment is to win 60% of hospitals in certain areas of London in the next three months, that is just small enough. The beachhead segment does not have to be big. It must be relevant enough to produce traction (case studies, testimonials, recommendations) to get you to the next adjacent segment, your portal to a bigger market."

3. Aligning Early Customer Profile (ECP) with Ideal Customer Profile (ICP):

   • Point: Strategically choose early customers who represent your future ideal customers.

   • "The key to choosing Early Customer Profiles (ECP) is that they should be similar to our Ideal Customer Profile (ICP). Instead of relying on chance, strategically choose early customers who are willing to pay for your product. Building a product based on feedback from early adopters who are not a great ICP target could lead to terrible product decisions."

4. Focusing on Effective GTM Motions:

   • Point: Identify and concentrate on 2-3 GTM motions that work best for your company.

   • "But which approach will work for you? There are three factors to consider. First, go where your audience is actively looking for solutions like yours. People are used to buying in a certain way, and their attention is already focused somewhere. Next, most GTM companies have limited resources. If your stronger competitors are spending big on advertising, you'll need to be more creative because you can't outspend them (yet). Finally, focus on your strengths."

5. Engineering Growth Loops:

   • Point: Develop and implement growth loops that naturally encourage product adoption and referrals.

   • "Control your greed for getting new users in. First focus on getting users to love the product so much that they naturally recommend it. Once you achieve this, that is one of the best candidates for creating a Growth Loop. Think value first."

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