Across industries and job titles, many professionals are experimenting with generative AI and what roles it should and should not play.
For startup founders, it begs the question: Can AI create a good pitch?
Buffalo Inno asked ChatGPT to write a pitch for a Buffalo tech startup seeking to raise $1 million and then took to regional investors to get their take on the results. We asked them to grade the AI pitch elementary school style, A through F. (See the full AI-generated pitch below.)
Overall, ChatGPT got passing — albeit not a great — grades, but investors came up with more critiques and suggestions than compliments.
“If I received this message as an investor, I’d quickly mark it read and triage the rest of my inbox,” said David Thiemecke, University at Buffalo senior startup success manager. “The founder put little effort into relevance or surprise.”
Thiemecke, who gave the pitch a D, is also lead of UB’s Buffalo Innovation Seed Fund, an early stage venture capital fund.
'Good prompts for specific information'
There are parts of the AI pitch that might help kickstart founders’ ideas and thoughts when forming their asks.
“The Our Product/Service, Market Potential, What We’ve Achieved, Why We Need Your Support, and Return on Investment sections have good prompts for specific information that will help potential investors determine if the company meets their general interests and is worth learning more about,” said Jack McGowan, executive director of Western New York Venture Association/Buffalo Angels, via email. He gave it a C.
Parts of the pitch, like being “born and bred in Buffalo,” might lead to founders thinking more deeply about what those statements actually mean to them, added Thiemecke.
He also liked that the pitch includes some key topics, like rapidly landing a customer, problem, market size and traction, as well as the template providing a spot to connect the investors’ needs to the startup.
“It’s key for founders to show the investor directly how their venture delivers on the investor’s return objectives while mitigating risk,” he told Buffalo Inno. “Founders shouldn’t forget that investors work hard to source scads of leads. This is one way to stand out for a long-term relationship.”
But overall, investors agreed more work has to be done to tweak a solid pitch. The broken-up sections might make it easier to read, but the AI version is too wordy, according to David Brown, Impellent Ventures managing partner. He gave ChatGPT a "C, maybe a D" grade.
'Give me a reason to open the email'
Both Brown and Jack Greco, serial angel investor and co-founder of ACV, said they didn’t really like any of ChatGPT’s pitch attempt.
“The note lacks fact and substance and nothing grabs my attention,” said Greco via email. “No clear connection to me personally. The template feels overly organized and with way too much information.”
The consensus among local investors was that the pitch was trying to do too much while not accomplishing enough.
The subject line would go right to spam, Brown said. Meanwhile, the letter had a lot of catch-all words that mean nothing and hit on too many areas.
“Cold emails should hit a point of overlap that attracts investors, a very clear sense of what the product is and how you are unique and why a call would be useful,” he added.
McGowan agreed there were too many generalities and unsupported superlatives. He suggested rather than giving overall cliches about the benefits of being in Buffalo, the startup should include specific information about who referred them to him and the local support organizations and collaborators that they’re working with.
“The Buffalo connection is likely to interest investors based in WNY but there’s no need to ‘preach to the choir’ about the benefits of locating here,” he said. “An investor who’s located outside of the region will probably not care about general statements about the Buffalo startup community.”
The letter’s argument layout didn’t make sense, and ChatGPT missed the customer’s perspective, according to Thiemecke. For a good pitch, founders must show how they understand the customer, quantify it and demonstrate that their solution is better than any other.
“I really just need a deck, a reason to read and a belief the founder has the ‘it’ factor,” said Greco, who gave ChatGPT a D grade. “Give me a reason to open the email from the title on.”
Read the full ChatGPT pitch for a Buffalo startup below:
Subject: Revolutionizing Tech from the Heart of Buffalo: Join Us on the Journey!
Dear [Investor's Name],
I hope this message finds you well. My name is [Your Name], and I am the founder of [Startup Name], a cutting-edge tech startup based in the vibrant city of Buffalo. We are reaching out to visionary investors like yourself who share our passion for innovation and believe in the potential of technology to transform industries.
About Us: At [Startup Name], we are on a mission to revolutionize [industry/sector] through the power of technology. Born and bred in Buffalo, our team brings a unique blend of talent, resilience, and an unwavering commitment to driving change. We have identified a significant gap in the market, and our solution is poised to disrupt the status quo.
Our Product/Service: [Describe your product or service briefly, highlighting its unique features and benefits. Emphasize the problem it solves and how it stands out in the market.]
Why Buffalo? Buffalo is more than just our home; it's our strategic advantage. With a burgeoning tech scene and a supportive community, Buffalo provides the ideal ecosystem for [Startup Name] to flourish. Our ties to local universities and partnerships within the community strengthen our foundation, ensuring long-term success.
Market Potential: [Provide data and insights on the market potential, showcasing the size of the market, current trends, and how your solution addresses a significant need.]
What We've Achieved:
• [Milestone 1]
• [Milestone 2]
• [Milestone 3]
Why We Need Your Support: To propel [Startup Name] to new heights, we are seeking a $1 million investment. This capital will be allocated towards:
1. Research and Development
2. Marketing and Sales Expansion
3. Talent Acquisition
4. Scaling Operations
Return on Investment: [Outline the potential return on investment, detailing your revenue model, growth projections, and how the funds will contribute to achieving key milestones.]
Join Us on this Exciting Journey: By investing in [Startup Name], you are not just supporting a tech startup; you are becoming a part of Buffalo's thriving tech ecosystem. We invite you to join us on this exciting journey as we reshape [industry/sector] and leave an indelible mark on the tech landscape.
To discuss this opportunity further, we would be honored to schedule a meeting at your earliest convenience. Your investment could be the catalyst that propels [Startup Name] to unparalleled success.
Thank you for considering our pitch. We look forward to the possibility of working together to make [Startup Name] the next success story to emerge from Buffalo.
Best regards,
[Your Full Name] Founder & CEO [Startup Name] [Contact Information]
