Fri, 24 March 2023
Curse of Knowledge
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
The Curse of knowledge is defined by Wikipedia as when better-informed people find it extremely difficult to think about problems from the perspective of lesser-informed people.
Startup founders are often experts in their field and find it difficult to discuss with investors who are not experts.
They are so close to the project that they often forget that others unfamiliar with the deal need more information.
To overcome the curse of knowledge in a startup pitch, consider the following:
Avoid using jargon and acronyms in the pitch.
Assume your audience is not familiar with your sector or technology and state keep points to clarify.
For example, don't assume the investor knows what your startup does.
Instead, state what your business does in five words or less.
Don’t assume they understand your market and how it works.
Instead, outline the market structure and the key dynamics.
Don’t assume they understand the importance of your metrics.
Instead, show how your metrics compare to others in your industry.
It’s often the case that the investor fails to grasp the pitch because there are too many key points missing from the presentation.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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