For many startup founders, placing among the top finishers in a prominent pitch competition can serve as the first major public validation of their aspiring business. And even those who don't take home a top spot in the event can take away invaluable skills and lessons from having their business reviewed by experts serving as a competition's judges.
While the outlined goals and requirements of startup pitch competitions can be as diverse as startups themselves, advice for some can often translate to success in others.
In September, the Richard King Mellon Foundation — one of the region's largest philanthropic organizations — announced the return of its social-impact pitch competition for socially-minded startups. Participants will vie for at least $1 million in foundation investments split among the three top finishers. It builds on last year's inaugural launch of the competition, which awarded a total of $3.39 million across 16 startups.
"There's a certain amount of excitement and energy built around these types of competitions that doesn't exist when you're just waiting for people to submit proposals with a traditional mechanism," Sam Reiman, director of the RK Mellon Foundation, said. "We are in a unique position as a foundation to convene startups in a way that they can come together and that they can have that [shared] experience."
Below are a series of Q&A responses to judges on this year's RK Mellon Foundation Social-Impact Investment Pitch Competition.
From Rebecca Doerge, dean of the Mellon College of Science at Carnegie Mellon University
Is there a common mistake that startups make in pitch competitions and, if so, how might that be avoided?
Yes. The common mistake is making the problem, pitch, and solution too complicated (e.g., using acronyms without definition, explaining too much – known as going down rabbit holes, not proofreading text out loud to make sure it sounds the way you meant it, etc.). Another common mistake is not ticking all the required boxes for a complete submission; if you don’t have something with which to tick the box, own it, explain it, and have a plan to address it.
How do you measure the validity behind the claims of social impact that a startup is making while in a pitch competition?
Validity is measured via preidentified metrics that make sense, and address impact. Metrics measured before the solution is implemented, and then during and after. For example, how many people are affected positively (shots in arms, houses built, mouths feed, medical devices created/distributed).
What advice do you have for a startup founder who is entering their first pitch competition?
Read the directions carefully. Know your problem, solution, and impact. Talk to previous winners for advice/mentoring or at least read about them. Create a team of mentors to advise you. Keep it simple and communicate concisely. Proofread.
From Kelly Collier, program and ecosystem development at LifeX
What makes a startup stand out to you as worthy of being a winner in a pitch competition?
The passion and promise of the team itself. This is also true in an investor pitch, but maybe even more so in a pitch competition where judges may be likely to reward or support a team that is truly committed to a mission and impact, even if their product or business still needs a lot more work.
How can a startup founder best capitalize on a victory in a pitch competition?
Founders can capitalize on the PR by clearly communicating what the company might need help with moving forward. Members of the community often want to find ways to support and champion the promising startups winning these competitions, make sure we know how best to do so with a clear call to action!
What takeaway should a startup founder have from participating in a pitch competition if they don't emerge as one of the winners?
Every pitch competition is a valuable opportunity to get in front of people who can provide insight, make a networking connection, or otherwise help you move forward. Winning an award is nice, but don't forget that the opportunity to pitch or promote your startup to a captive audience is highly valuable in itself!
From Carlos Peña, director of investments at ImpactAssets
What makes a startup stand out to you as worthy of being a winner in a pitch competition? The team has a clear impact outcome in mind, an understanding of the market they are operating in, a proposed solution for the issue, and a sound business model – even if with many assumptions still untested. Ideally, the startup also has traction (sales, pilots, etc.), a team with relevant experience, a clear need of how prize money will be used, and a strong board of advisors.
Is there a common mistake that startups make in pitch competitions and, if so, how might that be avoided? Claiming that they can solve the issue they are targeting extremely quickly. It’s better to acknowledge the startup is tackling a big problem, and clearly explain how slowly – but steadily, they will make progress towards their goal.
What advice do you have for a startup founder who is entering their first pitch competition? First and foremost, you can do it alone! Build a team of passionate folks with relevant experience – ideally diversified across operations, strategy, technology, etc. Second, research the problem and sector you are hoping to operate in, including who else is already working on it. This will help you develop an understanding of what is still needed, as well as of how you can stand out.
