Can AI craft the perfect pitch? It’s a question Triangle Inno asked, plugging in a quick prompt: Write a pitch for a tech startup seeking to raise $1 million.
ChatGPT delivered, but venture investors Inno talked to said the template it created missed the mark with generic language and cliches.
The template ChatGPT created was divided into sections labeled intro, the problem, the solution, market opportunity, competitive advantage, traction, revenue model, use of funds, financial projections, investment opportunity and conclusion.
“We are not just solving a problem; we are reshaping the landscape,” the template reads, calling the made-up company a “groundbreaking opportunity.”
“Your investment in [Startup Name] is an opportunity to get in on the ground floor of a venture with enormous potential for growth and impact,” the template reads.
Investors were intrigued, but not sold.
“Each cliche chews away at the founders authenticity,” said Scot Wingo of the Triangle Tweener Fund. “The investor is further and further away from understanding your motivation and story. In early stage, it’s often said you are betting on the jockey more than the horse … the entrepreneur really matters.”
ChatGPT's template couldn't match the authenticity of the real thing. It can, however, serve as a good starting point, albeit with some conditions.
David Gardner, founder of Cofounders Capital, said the most egregious thing ChatGPT does is ignore a startup’s team, an important factor in investing. He also likes to see entrepreneurs who can talk about how their company fits into a particular fund’s thesis.
But what Gardner liked about what AI delivered relative to many of the pitches he sees is the intro.
“It is amazing how often we have to get all the way to the end of a pitch to find out what the entrepreneur’s goals are for the meeting,” he said.
Zakiya Lee of Idea Fund Partners agrees, but says in the real world if it's a template used in a live pitch, there are likely to be a lot of questions from venture capitalists. Lee said starting with a template is fine, but be prepared to go “off-script.”
Lee said what she liked about what ChatGPT came up with is its brevity at the beginning. But she fears founders who rely on the AI’s talking points may not be able to pivot, and that could cost them a VC’s interest.
Wingo gave ChatGPT a solid “D.”
He said the very best pitches tell a story, “a personal connection or thread that answers ‘why are you building this’ and they have the hook." Like Gardner, he wants to see pitches tailored to what his firm invests in. In the Tweener Fund’s case, that’s early stage and local.
Wingo said if you’re using this kind of template as an emailed pitch, to make it shorter, think two minutes. It should identify the problem, talk about the solution and ask if an investor wants to learn more.
So for entrepreneurs looking to monetize ChatGPT as they fundraise in 2024, it’s a start, but just part of the prep work.