Coinbase is one of the world’s largest crypto exchanges. Its market cap is $64 billion. But in the summer of 2012, founder Brian Armstrong was in a dimly lit Silicon Valley office, practicing his pitch.
Let’s dig in!
What the Heck Is Bitcoin?
Brian does a wonderful job of explaining what bitcoin is. Don’t forget that in 2012, it was only 3 years old.
Today, everyone knows about bitcoin. But still, startups have to pitch investors unfamiliar with their market.
I recently met with an awesome startup working on ACATS processing. This is the process by which you move a brokerage account from one firm to another.
Before our meeting, I had Claude teach me a little about ACATS processing. But I sure as heck didn’t know anything before that!
Unless the investor has a background in your industry, explain everything.
How’s It Going?
Now that we know what bitcoin is, Brian explains why users need Coinbase.
That existing wallet software he shows is uglier than sin. Who wouldn’t prefer something more modern?
And sure enough, customers are flocking to Brian’s new platform. The growth in sign-ups is staggering.
In just 70 seconds, Brian establishes the two most important things: what he does, and how it’s going.
Clearly, this is not the first time he’s practiced.
PG Shows Why He’s PG
A voice pipes up from the audience. It’s Paul Graham!
His comments are dead-on. He tells Brian to emphasize that his sign-ups are growing 20% “a day”.
That’s such a crucial point!
If you’re mind is wandering or you need to go to the bathroom, it would be easy to assume that chart shows month over month growth. But it’s actually daily.
That’s a colossal difference. And it’s really strong evidence that Brian is on to something.
Paul also asks Brian how he makes money. That would have been my biggest question.
Turns out, Brian didn’t have a revenue model. So, it makes sense that he left that out.
I’d like to see him try some sort of revenue model, even if he changes it later. But we have to remember, this was a very early stage company.
Would I Have Seen It?
Would I have seen what Coinbase could be? Would I have even met Brian?
I’d love to tell you I would’ve seen it then. But I’m not so sure I would’ve.
There were nearly 100 startups in Brian’s batch. Brian didn’t show us any revenue.
I doubt I would’ve made contacting Brian a priority. But, if he contacted me, those sign-ups would be reason enough to take the meeting.
This could be a weakness in my game.
I’m very focused on revenue. And yes, it’s really important. But, that could lead me to miss meeting the great founders at the earliest stages.
Hmm…
Wrap-Up
Even in a practice session, Brian shows us two key things: strong traction and a rapidly growing market.
After Demo Day, my guess is his calendar was packed with investor meetings.
What do you think of Brian’s pitch? Leave a comment and let us know!
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