3 things you need to convince investors of your startup’s disruptive potential

Dozens of pitch decks rush into investors’ mailboxes daily. If you ask what the founders usually emphasize, it’s — unsurprisingly — a “we’re disrupting the market” claim.

Sure, a founder must believe in the product. However, it’s not about unique technology but more about convincing customers that their old pattern is less convenient. That is easy enough to do at the later stages with the positive unit economy in hand.

But what about early-stage startups that cannot yet demonstrate digitized metrics?

Traction at early stages

Typically, traction includes the following metrics:

  • ARPPU (average revenue per paying user)
  • DAU or MAU (total number of daily or monthly active users)
  • MRR (monthly revenue and monthly recurring revenue) dynamics
  • Dynamics of contract sales (bookings)

This data is essential but not always relevant to the project at an early stage. Therefore, consider adding the following metrics crucial for investors to your pitch:

  • The startup’s depth of knowledge of the audience and its pain points
  • Confirmation of the value provided

Here is how you can digitize these metrics:

1. Letters of guarantee or partnership agreements

This is primarily relevant for the B2B sector, but getting these letters conveys the industry’s interest in the project and demonstrates that the market trusts the startup.

For instance, in its first pitch deck in 2008 presenting its new business model, Uber included traction like five advisors and 15 clients interested in the product. Apparently, it worked!