4 secrets to being pitch perfect from a startup founder

Down pat

Whether you're pitching your startup in a competition or for capital, here are some expert tips. Getty Images

One of the things our team at EllieGrid is most famous for is pitching. We have pitched our smart pill box in over 20 business plan competitions, on television, radio, and to so many investors that I have lost count. I can't remember what our first pitch was like but I know it has certainly evolved overtime. You could even say that we A/B tested some of our methods.

When you first organize your thoughts, you want to consider the basics, so before I give my advice, consider these tried-and-true tips.

  • Get to the point — say what your company is in the first 10 seconds
  • Know your audience
  • Shorter usually means better
  • Keep numbers to a minimum
  • Have a clear ask

In order to save you a little time, here are some of the of the lessons I learned the hard way to help you perfect your pitch.

Don't pitch. Tell a story.
I am going to let you in on a little secret: most people don't want to hear your pitch, especially if yours is not the first they have heard that day. Put yourself in their shoes, do you really want to listen to someone ramble on about facts and figures? Chances are, no. Instead, tell a story. Use engaging voices and set the scene. Recall your creative writing classes from high school and how you should mention what it was like in terms of feel, smell, taste, etc. and don't use generic adjectives such as "too small" or "the old way was hard."

People remember how you made them feel
What is in it for your audience? Is it wealth, power, fame, praise or glory, and/or pleasure? It might sound obvious to make this point when pitching, but I suggest you write out your pitch and highlight exactly where you say what is in it for them, maybe even more than once. Making the audience feel like you are caring about their desires and engaging them in conversation will help you be more memorable.

Come full circle
My favorite technique in any pitch or speech is if the speaker can connect the closing back to something they said at the beginning of their pitch. I enjoy this because sometimes the speaker will leave a question unanswered and then reveal how their solution is the answer in a creative way. This keeps your listeners engaged and connects the pain to your solution. Watch a few TED talks and you will see what I mean.

Pitch to a kid
This is probably the best advice I can give because it is a surefire way to make sure your pitch makes sense to a wide range of listeners. This also forces you to leave out jargon and filler words that you think might make you sound fancy like "innovative" or "disruptive" but actually make you sound like everyone else.

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Regina Vatterott is the COO and co-founder of Ellie Grid, a Houston-based company reinventing medical devices. Read more about Regina here.

Youngro Lee, co-founder and CEO of NextSeed, wants to create a connection between business and their communities. Courtesy of NextSeed

Houston startup founder plants the seeds for innovative capital raising

Growing investments

After eight years as a private equity lawyer, Youngro Lee quit his job to start NextSeed, a digital avenue for businesses to raise capital from the community they serve.

"One thing that I always realized in my professional career is that private equity is not the stock market," Lee says. "It's only open to wealthy, accredited individuals. I didn't like that. I thought it was in inefficient process. It's really hard for entrepreneurs to raise money if it's only open to this small group of people."

Since its founding in 2015, NextSeed has helped dozens of companies — like restaurant group, Peli Peli, and brewery, Buffalo Bayou Brewing Co. — raise money online from individual investors.

"Our mission is to connect businesses and individuals to their communities," Lee says. "That's why our businesses and the people we work with are largely focused on retail or consumer-facing businesses. No matter how our company evolves, we will stick to that as much as possible."

NextSeed is expected to grow and evolve its services in the near future.

InnovationMap: What changed so that NextSeed could exist?

Youngro Lee: When the Jobs Act happened in 2012, essentially a series of laws allowed for online fundraising for companies — including to non-accredited investors. That really caught my eye. I decided to leave my legal career to leverage this new law to start NextSeed, which is a platform for businesses to raise capital for from anybody.

IM: What were your first steps in starting NextSeed?

YL: It was really just understanding the changing law to really come to the conclusion that this could work — and then understanding the parameters that need to be put in place to make it happen. And then there's no easy way to do it, so I just quit my jobs and went for it.

IM: How did NextSeed get its initial funding?

YL: We found angel investors to get the company started. As we made some progress over time, we found some other investors along the way.

IM: How is NextSeed different from anything else out there?

YL: For businesses, it's a completely different way to raise capital. We find businesses legally compliant ways to raise money and put it online, and they get to engage with the community through their page.

IM: How is it different from crowdfunding sites?

YL: There are so many different types of crowdfunding platforms. What we're doing is investment or securities crowdfunding. Kickstarter, for instance, is asking for support or donations with a reward, but NextSeed is allowing for investing in financial securities that's being issued by the businesses. Even amongst the investment crowdfunding platforms, there's usually a focus on specific assets, like real estate, tech startups, or small businesses — that's what NextSeed focuses on, small businesses debt securities.

IM: How do you get new clients and relationships?

YL: A lot of it really is people to people. Investors telling people about it, and businesses telling other businesses about a new way to raise capital.

IM: What do you wish you'd known before you started NextSeed?

YL: Nothing ever goes to plan. I think especially for startups, there's a lot of accomplished companies out there, and a lot will try to give you advice or support. It's helpful, but the reality is that circumstances of a startup is so unique that you really have to be flexible to the feedback from the market when you're starting your business or launching your product.

IM: How does Houston's startup community compare to other major cities?

YL: I think it's changed dramatically. When I started in 2014, there was nothing like what there is now. There was nothing like Station Houston or Houston Exponential. In general, the Houston community has really embraced and has an interest in what a startup is and how it can make a good impact on the Houston economy.

IM: How has startup funding changed throughout your career?

YL: There's definitely more people interested in investing in startups, but a lot of misconceptions on both sides — companies and investors — on what a startup needs in terms of support. It is a lot better now than it was four years ago. I think the key for Houston to understand is Silicon Valley is Silicon Valley. New York is New York. Houston's innovation ecosystem is really different from other markets. I think Houston needs to find what works for Houston and not necessarily replicate what other markets seem to be doing.

IM: What's a mistake you've made in your career and what did you learn from it?

YL: There's so many. One I made, and I keep making, is as a startup founder you're so used to doing everything in a specific way. I've definitely held on to more responsibilities or decisions that I should have delegated and entrusting others to do them. As you get to different stages as a startup you have to grow the organization. What I've learned from not being able to give up control or be more flexible is that it doesn't work. It's a team effort, and you need every member of the team to feel empowered and part of the entire process.

IM: How has NextSeed's team grown over the past four years?

YL: NextSeed started with three co-founders and now we have around 18 people. We are definitely still in transition process from a mature startup to an innovative financial institution. We are officially becoming a broker-dealer to be able to service a larger base — financial side, business side, as well as our investors. The goal was for NextSeed to keep innovating and bring in new technologies and processes

IM: What's next for NextSeed?

YL: Over the next couple month we will be expanding our capabilities to work on larger projects and different types of investment opportunities.

IM: What keeps you up at night, as it pertains to your business?

YL: As a startup, "almost good" doesn't work. You have to get it right because competition and standards are so much higher for startups. So, especially given that we are focused on technology and finance, I want to make sure we set ourselves up for a high standards and meet expectations.

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Portions of this interview have been edited.

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Rice Alliance names Houston healthtech exec as first head of platform

new hire

The Rice Alliance for Technology and Entrepreneurship has named its first head of platform.

Houston entrepreneur Laura Neder stepped into the newly created role last month, according to an email from Rice Alliance. Neder will focus on building and growing Houston’s Venture Advantage Platform.

The emerging platform, which is being promoted by Rice Alliance and the Ion, aims to connect founders with the "people, capital and expertise they need to scale."

"I’ve spent a lot of time thinking about what it takes to make an innovation ecosystem more navigable, more connected, and more useful for founders," Neder said in a LinkedIn post. "I’m grateful for the opportunity to do that work at Rice Alliance, alongside a team with a long history of supporting entrepreneurship and innovation."

"Houston has the talent, institutions, and industry base to create real advantage for founders," she added. "I’m looking forward to listening, learning, and building stronger pathways across the ecosystem."

Neder most recently served as CEO of Houston-based Careset, where she helped bring the Medicare data startup to commercialization. Prior to that, Neder served as COO of Houston-based telemedicine startup 2nd.MD, which was acquired for $460 million by Accolade in 2021.

"Laura brings a rare combination of founder empathy, operational experience and ecosystem leadership," Rice Alliance shared.

Neder and Rice Alliance also shared that the organization is hiring developers to design the new Venture Advantage Platform. Learn more here.

Elon Musk's SpaceX files initial paperwork to sell shares to the public

Incoming IPO

Elon Musk's space exploration company has filed preliminary paperwork to sell shares to the public, according to two sources familiar with the filing, a blockbuster offering that would likely rank as the biggest ever and could make its founder the world's first trillionaire.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk's ambitions to set up a base on the moon, put datacenters the size of several football fields in orbit and possibly one day send a man to Mars.

The sources spoke on condition of anonymity because they were not authorized to talk publicly about the confidential registration with the Securities and Exchange Commission.

SpaceX did not respond immediately to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed but the figure is reportedly as much as $75 billion. At that level, the offering would easily eclipse the $29 billion that Saudi Aramco raised in its IPO in 2019.

The offering, coming possibly in June, could value all the shares of SpaceX at $1.5 trillion, nearly double what the company was valued in December when some minority owners sold their stakes, according to research firm Pitchbook, before an acquisition that increased its size.

Musk owns 42% of the SpaceX now, according to Pitchbook, though that figure will change with the IPO when new owners are issued shares. In any case, he is likely to pierce the trillion dollar mark because he is already close. Forbes magazine estimates Musk's net worth at roughly $823 billion.

In addition to making reusable rockets to hurl astronauts and hardware into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company also recently brought under its roof two other Musk businesses, social media platform X, formerly Twitter, and artificial intelligence business, xAI, in a controversial transaction because both the seller and the buyer were controlled by him.

SpaceX has become the biggest commercial launch company in its industry, responsible for sending payloads into orbit for customers across the globe, but has also benefited from big taxpayer spending. That has raised conflicts of interest issues given that Musk was the biggest donor to President Donald Trump's campaign and is still a big backer.

In the past five years, SpaceX won $6 billion in contracts from NASA, the Defense Department and other U.S. government agencies, according to USAspending.gov.

Among current SpaceX owners is Donald Trump Jr, the president's oldest son. He owns a shares through 1789 Capital. That venture capital firm made him a partner shortly after his father won the presidency for a second time and has been buying up federal contractors seeking to win taxpayer money ever since.

The White House and Trump himself have repeatedly denied there are any conflicts of interest between his role as president and his family's businesses.

8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

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