GitLab is a $5 billion company with over 50 million users. But in 2015, it was just a tiny startup. Today, I watched their original YC application video. It’s one of the best pre-seed pitches I’ve ever seen. 

Founder Sid Sijbrandij does an incredible job of selling himself. In less than a minute, he gives us enough to get any investor excited.

Let’s break down his pitch and see how you can learn from Sid…

Selling Himself as a Founder

Sid starts by telling us about his prior startup, which sold recreational submarines. He built it into the largest producer of recreational submarines in the world. 

This tells us that Sid knows how to build a company. If we invest in him, we have a better chance of getting a return than someone who hasn’t started a business before. 

When you pitch investors, sell them on your biggest accomplishments. Maybe you created a business in high school. Maybe you did some original scientific research. 

Give us evidence that you’re exceptional!

Getting the Pitch Down to One Simple Sentence

Next, Sid explains what GitLab does: “GitLab is open source software to collaborate on code.”

See how clear that sentence is?

When an investor doesn’t understand what you do, he tunes out. And you don’t get a check.

Get your vision down to one simple sentence, like Sid did. The first step in getting a check is making sure investors understand what you do. 

Showing Real Traction

Sid gives us strong evidence that GitLab is catching on. It’s already used by over 100,000 organizations at this point.

Very few pre-seed startups have that kind of traction. But whatever traction you have, make sure investors know about it!

Let’s say you have three paid customers. I know, that’s not all the money in the world. 

But it’s a nice start! Make sure you mention it.

Controlling Your Own Destiny

Sid is working hard to get funding from YC. But he also makes clear he doesn’t really need it.

GitLab is already cashflow positive. That’s very unusual for an early-stage company.

This shows that Sid is great at getting paying customers. It also shows he’s done an excellent job controlling expenses.

Getting to cashflow positive this early on is quite difficult. But if you and a co-founder can take minimal or no salary and build everything yourself, you have a chance to get to default alive early. 

This sets you apart from other startups. It also frees you from depending on investors.

Wrap-Up

In less than a minute, Sid gives us powerful evidence that he’s an exceptional entrepreneur.

He’s built a successful business in the past. He’s taken GitLab live and signed up lots of customers. And he’s already profitable. 

Most any pre-seed investor would make this bet. 

Very few pre-seed companies are as strong as GitLab was in 2015. But you can learn from Sid to make your pitch better.

Lead with what makes you exceptional. Then, clearly explain what you do and how it’s going. Control expenses so you’re not at the mercy of VCs.

If you can do that, you just might create the next GitLab. 

More on tech: 

You’ve Got Your First Customer. Now, How Do You Raise Money?

Why Short Decks Raise Millions

“Don’t Be Afraid to Fail” — Three Lessons from Elon That Will Make You a Better Founder, Leader, and Investor

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