Here are some reminders of how to serve up a home-run of a pitch to potential investors. Miguel Tovar/University of Houston

Pitching to a venture capitalist is not only the most challenging part of building a startup, it’s also the most important. You can have the next pet rock idea, but nobody will ever experience it and you’ll never make a dime if the genius of this product cannot be expressed in an investor pitch. Okay, so pet rock isn’t the best example.

Let’s say you have a product that gets rid of stretch marks overnight. Great idea, right? Of course. But if you’re in front of an investor and they ask you how your product works, and you can’t answer them, your idea will forever remain just that: an idea. It’ll never manifest itself materially, which is your goal.

Did you know that the average venture capitalist holds around 500 in-person meetings per year? Further, did you know that only one in every 10 startups will make it past the first meeting?

With so many meetings with startup founders, you better believe that investors are virtually looking for reasons to pass on you and your cordless extension cord. Or whatever fakakta contraption you’ve developed in your garage.

Well, with so much importance placed on first impressions, here are some of the most important things investors look for and notice when you pitch to them:

Value proposition

This is what separates you from the pack. This is what makes your startup a standout. A value proposition shows an investor your company’s competitive advantage. If you can explain to your potential investor why it would be their folly if they invested in a competitor over your startup, then you’ll be that much closer to rolling out your product to market. Investors want to see a product or service that is unique because that means less competition, and less risk involved.

Entrepreneurship

Sure, you might be a brilliant scientist. You may have developed nanotechnology that eviscerates dirt and bacteria so you don’t have to shower anymore. But have you put together a team that can make your company a successful business? Do you have team members with experience in whatever it is your startup does? Do you have people with credibility congruent with your startup? Your pitch is a way for investors to find these things out. If you can show them that your team has experience, passion, insightfulness, and expertise, investors will feel much better about taking a chance on you.

Confidence is key

Investors can tell if a founder is confident, but not overconfident about how far they’ve come and how far they know they can go. During a pitch, investors can tell if your team is a cohesive unit or parts of a fractured whole.

Anatomy of an investor pitch

Your potential investor will notice if your pitch is structured well. He or she will take not of whether or not your pitch is designed well. They’ll ask themselves if it’s authentic. Does it cover business metrics? Is it concise and to the point? Is the founder communicating something complex in a simple way? Doing so shows absolute understanding and a total grasp of your product and the science behind it, plus the business aspect of it.


------

This article originally appeared on the University of Houston's The Big Idea. Rene Cantu was the writer and editor at UH Division of Research.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

How Houston innovators played a role in the historic Artemis II splashdown

safe landing

Research from Rice University played a critical role in the safe return of U.S. astronauts aboard NASA’s Artemis II mission this month.

Rice mechanical engineer Tayfun E. Tezduyar and longtime collaborator Kenji Takizawa developed a key computational parachute fluid-structure interaction (FSI) analysis system that proved vital in NASA’s Orion capsule’s descent into the Pacific Ocean. The FSI system, originally developed in 2013 alongside NASA Johnson Space Center, was critical in Orion’s three-parachute design, which slowed the capsule as it returned to Earth, according to Rice.

The model helped ensure that the parachute design was large enough to slow the capsule for a safe landing while also being stable enough to prevent the capsule from oscillating as it descended.

“You cannot separate the aerodynamics from the structural dynamics,” Tezduyar said in a news release. “They influence each other continuously and even more so for large spacecraft parachutes, so the analysis must capture that interaction in a robustly coupled way.”

The end result was a final parachute system, refined through NASA drop tests and Rice’s computational FSI analysis, that eliminated fluctuations and produced a stable descent profile.

Apart from the dynamic challenges in design, modeling Orion’s parachutes also required solving complex equations that considered airflow and fabric deformation and accounted for features like ringsail canopy construction and aerodynamic interactions among multiple parachutes in a cluster.

“Essentially, my entire group was dedicated to that work, because I considered it a national priority,” Tezduyar added in the release. “Kenji and I were personally involved in every computer simulation. Some of the best graduate students and research associates I met in my career worked on the project, creating unique, first-of-its-kind parachute computer simulations, one after the other.”

Current Intuitive Machines engineer Mario Romero also worked on Orion during his time at NASA. From 2018 to 2021, Romero was a member of the Orion Crew Capsule Recovery Team, which focused on creating likely scenarios that crewmembers could encounter in Orion.

The team trained in NASA’s 6.2-million-gallon pool, using wave machines to replicate a range of sea conditions. They also simulated worst-case scenarios by cutting the lights, blasting high-powered fans and tipping a mock capsule to mimic distress situations. In some drills, mock crew members were treated as “injured,” requiring the team to practice safe, controlled egress procedures.

“It’s hard to find the appropriate descriptors that can fully encapsulate the feeling of getting to witness all the work we, and everyone else, did being put into action,” Romero tells InnovationMap. “I loved seeing the reactions of everyone, but especially of the Houston communities—that brought me a real sense of gratitude and joy.”

Intuitive Machines was also selected to support the Artemis II mission using its Space Data Network and ground station infrastructure. The company monitored radio signals sent from the Orion spacecraft and used Doppler measurements to help determine the spacecraft's precise position and speed.

Tim Crain, Chief Technology Officer at Intuitive Machines, wrote about the experience last week.

"I specialized in orbital mechanics and deep space navigation in graduate school,” Crain shared. “But seeing the theory behind tracking spacecraft come to life as they thread through planetary gravity fields on ultra-precise trajectories still seems like magic."

UH breakthrough moves superconductivity closer to real-world use

Energy Breakthrough

University of Houston researchers have set a new benchmark in the field of superconductivity.

Researchers from the UH physics department and the Texas Center for Superconductivity (TcSUH) have broken the transition temperature record for superconductivity at ambient pressure. The accomplishment could lead to more efficient ways to generate, transmit and store energy, which researchers believe could improve power grids, medical technologies and energy systems by enabling electricity to flow without resistance, according to a release from UH.

To break the record, UH researchers achieved a transition temperature 151 Kelvin, which is the highest ever recorded at ambient pressure since the discovery of superconductivity in 1911.

The transition temperature represents the point just before a material becomes superconducting, where electricity can flow through it without resistance. Scientists have been working for decades to push transition temperature closer to room temperature, which would make superconducting technologies more practical and affordable.

Currently, most superconductors must be cooled to extremely low temperatures, making them more expensive and difficult to operate.

UH physicists Ching-Wu Chu and Liangzi Deng published the research in the Proceedings of the National Academy of Sciences earlier this month. It was funded by Intellectual Ventures and the state of Texas via TcSUH and other foundations. Chu, founding director and chief scientist at TcSUH, previously made the breakthrough discovery that the material YBCO reaches superconductivity at minus 93 K in 1987. This helped begin a global competition to develop high-temperature superconductors.

“Transmitting electricity in the grid loses about 8% of the electricity,” Chu, who’s also a professor of physics at UH and the paper’s senior author, said in a news release. “If we conserve that energy, that’s billions of dollars of savings and it also saves us lots of effort and reduces environmental impacts.”

Chu and his team used a technique known as pressure quenching, which has been adapted from techniques used to create diamonds. With pressure quenching, researchers first apply intense pressure to the material to enhance its superconducting properties and raise its transition temperature.

Next, researchers are targeting ambient-pressure, room-temperature superconductivity of around 300 K. In a companion PNAS paper, Chu and Deng point to pressure quenching as a promising approach to help bridge the gap between current results and that goal.

“Room-temperature superconductivity has been seen as a ‘holy grail’ by scientists for over a century,” Rohit Prasankumar, director of superconductivity research at Intellectual Ventures, said in the release. “The UH team’s result shows that this goal is closer than ever before. However, the distance between the new record set in this study and room temperature is still about 140 C. Closing this gap will require concerted, intentional efforts by the broader scientific community, including materials scientists, chemists, and engineers, as well as physicists.”

---

This article originally appeared on EnergyCapitalHTX.com.