I don't think there's anything new here. This is real life, human nature --however one might care to put it. Startup demo's are not about demo's at all.
From politics to selecting an air conditioning contractor and beyond, presentation and engagement matter a lot. It's not that people are stupid or superficial, these things (and others) create impressions and confidence. And, in some cases, they are crucial to the success of the venture.
When I first launched into the world as an entrepreneur, decades ago, I was too much of an engineer. One key element that was missing is I sucked at selling. You can engineer an amazing product but, contrary to the popular saying, people won't beat a path to your door unless you are good at selling it. The history of business is paved with the carcasses of great products that never got off the ground because the people involved couldn't sell them.
In my case I recognized this from the very start and actively sought help in the area where I was most deficient. The first few months after we started to sell our hardware product were terrible. I'd mess-up presentation after presentation. Yet, with constant coaching I eventually figured it out. Within about eight months or so I was so comfortable selling that I could actually sell a product without saying a single word about it during a demo.
These presentations to potential investors have a far greater purpose than simple product demos. They serve to communicate to the audience a range of information about the entrepreneur. Important data points. One of them being whether or not the person can actually sell what they are making. If you can't sell and are going to hire someone to do so, you might be better off having them do the presentation. Folks who understand selling can sell anything, including a startup looking for funding.
To paraphrase an observation made decades ago by Smokey Yunick, a famed race car designer:
"When all the smoke and bullshit clears out you have to sell the damn thing".
One of them being whether or not the person can actually sell what they are making.
If the founder is indeed going to be in a position of standing up to a group of potential customers and selling something to them, whether it's a car or an expensive software package, then I can see the importance of such a presentation.
If, however, the sales takes place in a store, on a website, or in a catalog, then a different set of skills are needed--developing sales funnels, setting up distribution partnerships, converting online visitors, and writing stellar marketing copy. Yet I have never seen a demo day or investor pitch session that focuses on those skills, even though they will have a huge impact on the success or failure of many types of ventures.
If you can't sell and are going to hire someone to do so, you might be better off having them do the presentation.
That makes sense. Serious question, though: but do demo day organizers encourage it? How would investors or audiences react?
Folks who understand selling can sell anything, including a startup looking for funding.
I know this is true, yet I find this disappointing. It means that great salespeople can sell a turkey, which not only hurts investors but takes money away from more capable enterprises.
> If, however, the sales takes place in a store, on a website, or in a catalog, then a different set of skills are needed--developing sales funnels, setting up distribution partnerships, converting online visitors, and writing stellar marketing copy. Yet I have never seen a demo day or investor pitch session that focuses on those skills, even though they will have a huge impact on the success or failure of many types of ventures.
I understand what you are saying. Still, selling hasn't really changed in a long, long time. People were doing what you listed back in the days of mail order catalog selling. The technologies are different today but a lot of the same skills apply.
Selling isn't about technologies, it's about people. Of course, anyone can spend thousands of dollars a day on AdWords, blast a product out and generate tons of traffic. That doesn't sell. Generating good copy that sells and excellent landing pages and maybe even videos requires understanding how and why people buy. If someone can't sell themselves in an in-person demo they are not going to do well in any other medium. Are there corner cases? Of course. Yet, they would be better if they could sell in person. Writing copy or making a great video don't happen in isolation of an understanding of interpersonal dynamics.
Why doesn't Coca Cola just say "Our product tastes better and it's $1.23 per bottle. Buy it"? Instead they create these elaborate commercials with cute computer generated bears or groups of people dancing, etc. They understand they need to sell on emotion, not logic.
Most products, even something as dry as penetration testing software, have an emotional element. In some cases it might be more overt than in others, still, it's there. In the case of penetration testing software you need to convey strength, confidence and experience in order to generate one of the most powerful emotions: Trust.
From politics to selecting an air conditioning contractor and beyond, presentation and engagement matter a lot. It's not that people are stupid or superficial, these things (and others) create impressions and confidence. And, in some cases, they are crucial to the success of the venture.
When I first launched into the world as an entrepreneur, decades ago, I was too much of an engineer. One key element that was missing is I sucked at selling. You can engineer an amazing product but, contrary to the popular saying, people won't beat a path to your door unless you are good at selling it. The history of business is paved with the carcasses of great products that never got off the ground because the people involved couldn't sell them.
In my case I recognized this from the very start and actively sought help in the area where I was most deficient. The first few months after we started to sell our hardware product were terrible. I'd mess-up presentation after presentation. Yet, with constant coaching I eventually figured it out. Within about eight months or so I was so comfortable selling that I could actually sell a product without saying a single word about it during a demo.
These presentations to potential investors have a far greater purpose than simple product demos. They serve to communicate to the audience a range of information about the entrepreneur. Important data points. One of them being whether or not the person can actually sell what they are making. If you can't sell and are going to hire someone to do so, you might be better off having them do the presentation. Folks who understand selling can sell anything, including a startup looking for funding.
To paraphrase an observation made decades ago by Smokey Yunick, a famed race car designer:
"When all the smoke and bullshit clears out you have to sell the damn thing".