Business & Money · Framework

YC Pitch Framework

Seven-step structure for explaining your startup simply and clearly to investors

A seven-part framework synthesized from Y Combinator's guidance on pitching early-stage startups. It focuses on clarity, concrete metrics, and plain language over jargon and hype.

The framework

  1. What do you do?
  2. Start with a straightforward description combining company name and core function
  3. Avoid complex setups or trying to make the idea sound overly impressive
  4. Consider explaining through user experience: "Like Google - you type a question in a box, and we show you websites with answers"
  5. Focus on making the listener interested enough to ask follow-up questions
  6. Market size
  7. Choose between researching existing market data or creating estimates for new markets
  8. Share specific demographic breakdowns and avoid overly broad market definitions
  9. Include concrete calculations showing total addressable market and your potential share
  10. Progress
  11. Demonstrate impressive output relative to time invested
  12. Prioritize real achievements in product and customer acquisition
  13. Quantify progress with specific metrics: user growth, revenue increases, product iterations completed
  14. Focus on conveying speed and efficiency of execution regardless of company stage
  15. Unique insight
  16. Share specific insights from customer interactions, market analysis, and firsthand experience
  17. Explain the non-obvious elements that give you competitive advantage
  18. Use clear, simple language to convey complex insights
  19. Back insights with concrete examples and data
  20. Business model
  21. Clearly state whether you have a defined revenue model or are focusing on growth first
  22. If uncertain, acknowledge industry standard models you're likely to adopt
  23. Present one clear, confident revenue strategy rather than multiple possible options
  24. Explain how your model aligns with market dynamics and customer behavior
  25. Team
  26. Share number and roles of founders, emphasizing technical capabilities
  27. Length and nature of founding team relationships
  28. Full-time commitment status of all team members
  29. What do you want?
  30. Be explicit about your specific requests from investors
  31. Clearly state funding amounts, strategic help, or specific introductions needed
  32. Avoid vague questions about validation or general feedback
  33. Make it simple for investors to understand how they can help you succeed

What it's for

  • Structure an introductory pitch deck for angel or venture capital meetings
  • Prepare concise talking points for demo days and accelerator interviews
  • Refine a company's one-sentence explanation to make it immediately understandable

Key points

  • Core offering: Clear description combining name and function without jargon
  • Market size: Calculated addressable market with specific demographic breakdowns
  • Progress: Measurable growth metrics demonstrating execution speed relative to time
  • Unique insight: Non-obvious advantages derived from customer interactions or domain experience
  • Business model: Single, confident revenue strategy aligned with market standards
  • Team credentials: Founder roles, technical capability, and relationship history
  • The ask: Explicit request detailing funding targets or specific strategic introductions

Pricing

Free

Details

Type
Framework
Category
Business & Money
Topic
Fundraising Frameworks
Open source
No
For
Early-stage startup founders preparing to raise capital or apply to accelerators
Tags
fundraising, pitches, startups, ycombinator, frameworks, investors

Why it was saved

  • @benln, 30 October 2024: A complete, actionable checklist for pitching a startup to investors

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