When explaining what Venture Capital is, I’d be tempted to define its key aspects—just like any
good pitch should. But I quickly realize that to truly share the fundamentals of this industry, I need
to break down the jargon that makes Venture Capital… well, Venture Capital!
Let’s start with this word: pitch. An investment pitch is a very brief “speech” in which an entrepreneur presents their business idea. The term “elevator pitch” comes from the idea that
this speech should be short and compelling enough to convince an investor in just a brief
encounter—traditionally imagined as the time it takes to ride an elevator across multiple floors.
Now, picture yourself in New York—how would you tell your startup’s story from the ground floor
to the 20th floor?
I find the metaphor of going up quite fascinating. The growth of a company is always an uphill
journey. If it weren’t, if it were downhill instead, we’d probably be picturing an elevator going
down, not up—right? Taking the time to craft and refine your business idea is at the core of an entrepreneur’s work, but it’s also a valuable skill in many other areas. Summarizing your idea
(and, why not, your place in the world) is no small feat. It’s a skill that must be trained, and it
takes countless elevator rides with different audiences before you can confidently say your pitch
is ready. The key is to take home new insights each time and integrate them into the next pitch.
At the end of this imaginary elevator pitch, the investor who has silently listened to our incredibly
short yet painfully long three minutes is expected to say something (which we almost imagine as
divine intervention). Their response could range from a blunt “I’m not interested; this isn’t in
my investment areas”—which, even if true, might actually translate to “what a terrible
idea”—to the other end of the spectrum: a “Brilliant! Count me in! Here’s my number”, which,
in reality, could just mean “I’m acting excited, but I’m not sure I’ll actually invest”.
And in this bizarre back-and-forth lies the true game of a founder!
Best of luck on your next elevator ride! ��
