Jeannie Cahalane
In a world inundated with information, connecting with the right investors is often a daunting task for tech founders. Enter PitchMastr, an innovative platform bridging tech founders with early-stage investors through an intermediary approach. Founded by Hermann, PitchMastr leverages relationship-driven fundraising strategies that enable founders to focus on their core mission. In this exclusive interview, Hermann shares insights into the journey of building PitchMastr, the unique features of the platform, and his vision for the future of tech startup funding.
Background and Inspiration
Q1: Could you share what led you to create PitchMastr, especially with your journey through ChangeMastr?
Hermann: Fundraising takes a lot of time and effort and can remove a founder from their core mission for a year or more. This is not ideal. Fundraising is relationship-driven, and a single funder cannot scale their time beyond 24hrs a day. Bringing intermediaries into the equation leverages the founder’s time and relationships.
Q2: How did your early experiences, such as those in Mozambique, shape your approach to raising capital and building investor relationships?
Hermann: The experience of raising $5m in Mozambique in 2009 showed me that funding is about relationships, and building relationships with potential funders makes it very hard for someone who is not in Silicon Valley.
The PitchMastr Platform
Q3: What specific needs or gaps in the funding process does PitchMastr address for tech founders?
Hermann: PitchMastr helps them to exponentially scale their outreach efforts.
Q4: Could you explain the success-based fee model and how it benefits founders who may have limited initial capital?
Hermann: I agree a % upfront with the founder (between 3% and 7%), we sign an agreement, and as soon as they get their funding through our platform, they pay over the % to us. That is the model.
Q5: How does PitchMastr support transparency and security in investor-founder interactions?
Hermann: Every investor is registered, either by themselves or through an intermediary. Registered investors get access to the pitch deck. On the pitch deck page, they get access to the funder’s contact details, and can engage directly with the founder from there.
Key Features and Services
Q6: What are the primary features founders can expect when they join PitchMastr?
Hermann: Transparent process – we are crystal clear about how the process works. Legally-binding contracts – founders sign online with us. Pitch Deck review and support to get it up to standard. 60 standard questions that enrich the pitch deck page. Dedicated outreach to promote the project.
Q7: Can you elaborate on the role of intermediaries on the platform and how the success fees are structured?
Hermann: Intermediaries are people with direct access to investors. They have existing relationships with people who may be interested in a particular project. Once an intermediary signs up, we sign a very detailed contract with them. They then get access to a dashboard, where they need to register their investors for a specific project. We then check whether that investor is already registered or not. If they are, we reject the entry from the intermediary. If not, the investor is registered against the intermediary’s name for the project. The intermediary is then free to promote the project to the investor. Should that investor fund the project, we share the success fee 50/50 with that intermediary.
Q8: How does PitchMastr ensure that only verified, high-potential projects and investors are on the platform?
Hermann: We vet and check every project ourselves. In terms of investors, we do not have a mechanism in place (yet) to vet their quality.
Market Position and Growth
Q9: How do you view PitchMastr’s role within the expanding landscape of startup investment platforms?
Hermann: We are the only one that I know of that has this intermediary structure, and does active outreach for every project.
Q10: Which industries or technology sectors do you find are most active or suited for PitchMastr’s services?
Hermann: We focus on all tech startups.
Future Goals and Vision
Q11: What is your vision for PitchMastr over the next few years? Are there any new features or expansions planned?
Hermann: The platform will eventually evolve into a web application, with lots of features relevant for every interest group.
Q12: How do you plan to continue differentiating PitchMastr to meet evolving founder and investor needs?
Hermann: The market will tell us what it needs, and we will adapt.
Advice for Founders
Q13: Based on your experience, what key advice would you give to early-stage founders looking to attract investors?
Hermann: Solve a REAL problem, not something that makes you feel warm and fuzzy inside.
Q14: Any tips on crafting an effective pitch or building trust with investors, especially for those new to fundraising?
Hermann: I cannot over-emphasize the importance of solving real-world problems. The majority of startups will never fly because of this. They jump in because they had a great idea, with critically verifying the real-world need for the service, the actual size of the market, and how they are going to position the offer.
Conclusion
Hermann’s journey with PitchMastr reflects a dedicated commitment to helping founders navigate the complex landscape of startup funding through a transparent, intermediary-driven approach. His experience and insights position PitchMastr as an innovative tool that enables tech entrepreneurs to maximize their outreach and secure funding effectively. With a clear vision for future growth and a unique platform model, PitchMastr stands as a promising solution for early-stage tech founders. AIPressRoom is thrilled to share Hermann’s story and looks forward to witnessing PitchMastr’s impact on the world of tech startup investments.
