When you pitch your start-up to a huge investor, I am1 providing a presentation that might potentially win you millions of dollars in funding and make all the sacrifices you’ve actually put into your idea worth it.
As any seasoned entrepreneur knows, a great idea is insufficient to obtain you financing. I am2 selling yourself as much as I am1 selling your service. And ultimately, I am1 selling a story.
Award-winning radio manufacturer Alex Blumberg recently left his gigs at This American Life and NPR’s World Money to venture out on his own as an entrepreneur, and he’s recording the whole learning procedure in his StartUp Podcast.
He recently had the possibility to pitch his podcast network to billionaire investor Chris Sacca, who’s purchased Twitter, Uber, Instagram, and Kickstarter throughout his firm Lowercase Capital.
They fulfilled in Sacca’s San Francisco workplace. When Sacca tells Blumberg he doesn’t wish to see Blumberg’s slide deck– which could be a crutch– and that he ‘d rather go on a walk and talk, Blumberg feels absolutely thrown off, he says in the latest episode of This American Life.
Sacca was generous enough to let Blumberg tape the entire conversation and even coached him through his cringeworthy pitch. Blumberg couldn’t have actually ended up with any cash however he got valuable advice from a start-up power broker.
Here’s how Blumberg (AB) started, his voice tremulous:
AB: Right here’s the trouble. Worldwide of audio right now many people consume the type of audio journalism that I do, many people eat it over the radio. Those individuals are leaving the radio in droves, and they are moving to digital. They are migrating to digital listening. The, uh, number of– the number of undoubtedly smartphone handsets, they are going through the roof. The audio dashboard is becoming digital. iTunes radio, podcasting, is all gonna be on your dashboard. Um. And, there’s this universe of– so there’s all these individuals going there, and, so I want to start a business that’ll certainly produce the material for all these people to pay attention to, who resemble, moving into the digital future-slash-present.
In his narration for the episode of This American Life, Blumberg jumps in to mock the means he makes use of awkward expressions like ‘consuming audio’ and ‘future-slash-present.’
The discussion continues, and Sacca informs Blumberg that he shouldn’t feel shy about describing why he can do podcasting much better than anybody else, recommending that obviously that’s the only reason someone would trust somebody to bring them a return on investment.
Blumberg then mentions to Sacca about how he intends on earning money with advertisements, premium paid content, and initiatives much like the time World Money sold $600,000 worth of T-shirts throughout a podcast series where they narrated the path of the t-shirt from the drawing board to manufacturing facility to doorstep.
Sacca ultimately cuts in to inform Blumberg that he’s to tighten up his pitch, however Blumberg appears to obtain even more anxious. After some more having a hard time, Sacca (CS) asks Blumberg how much money he requires.
AB: So, it will take a million and a half dollars, I think? Um, and …
CS: Take out the “I think.”
AB: It will take a million and a half– I am searching for a million and a half to 2 million dollars in seed phase financing.
CS: No, no, no. I am2 searching for a very particular amount of money.
In the podcast, Blumberg states that their walk lasted for about an hour prior to Sacca dropped the pretense of a real pitch meeting and turned their time into a coaching session.
Sacca then enters the duty of Blumberg, showing how he’d have pitched business and gives the perfect concise pitch. While Blumberg had pitched for about an hour, it takes Sacca just one minute and 41 seconds.
CS: Hi there look, can I get two minutes from you? So right here’s the thing. You most likely know me: producer of This American Life, been doing it for 15 years, the most effective radio program, top of the podcasts in iTunes, et cetera.
Here’s things. I recognize there’s an appetite for this kind of material. There’s none of this shit. There’s simply a lot of jerkoff podcasts. Absolutely nothing’s out there. Advertisers are dying for it, users are craving it. And if you take a look at the macro environment, we are seeing an increasing number of podcast integrations into automobiles. Individuals desire this content. It’s an entire new button in the latest version of iOS.
So here’s things. Nobody else can make this spunk. I understand ways to make it better than anyone else on the planet, therefore I have currently identified a few essential locations where I understand there’s hunger for the podcasts, we got the subject matter, we are gonna launch this spunk. I understand there’s advertisers who want to get included with it.
But right here’s the unreasonable advantage I have. Since of what I have done in my past professions with This American Life and World Cash, individuals want to actually directly pay for this things. I am not simply discussing standard subscriptions. I am talking we did this T-shirt experiment at Planet Money where we got $600,000 coming where individuals actually provided us cash to purchase a T-shirt with our logo design on it as part of the material, it was integrated directly. And I know we can replicate that throughout these other platforms.
So right here’s what we are doing. We are assembling a million and a half dollars that’s gonna buy us three, 4 guys who’re gonna launch these three podcasts in the next Twelve Month. We think really quickly we can get to 3-, 400,000 net customers throughout the entire thing. With CPMs [expense of advertisement per 1,000 audience members] where they’re in this market right now, I know on advertising alone we could get to break even however as we do more of this combination we get individuals texting in to contribute to this stuff, buying some of this product, doing some of these incorporated episodes– I know that we are going to have on our hands here something that’ll eventually scale to 12, 15 podcasts.
The audience exists. They desire it. Nobody else can do it like we can. Are you in?
Blumberg laughs and believes that Sacca’s shipment suggests he wants it. But then Sacca provides a counter-argument, stating long-form podcasts are risky when all other media content is getting much shorter, there’s a heavy reliance on Apple and Google for circulation, and the successful Planet Cash project likely had a boost from individuals’s moral responsibility to contribute to public radio– a benefit a for-profit business lacks. He also says that there’s an increasing variety of effective news or education-based podcasts that show Blumberg’s business I am0 exactly be breaking brand-new ground.
And ultimately, even if Blumberg’s concept is potentially lucrative, it would pay within a niche market. Lowercase Capital handles business that are predicted to end up being enormous and even worth over a billion dollars. Essentially, even Blumberg’s refined pitch was not able to instill the essential ‘worry of losing out’ that Sacca tries to find.
Even though his pitch to Sacca failed, Blumberg keeps plugging away, sharing the lessons he finds out as an entrepreneur in the StartUp Podcast.
You can hear the full discussion between Blumberg and Sacca in the This American Life episode offered on its site or throughout its iPhone app.