“Floor management to Main Tom,” Prosina, the 29-year-old founding father of Stellar Facilities, sings mournfully to the viewers of about 100 on a Saturday evening in San Francisco’s Mission District.
Welcome to “Snark Tank,” the place start-up founders like Prosina current their companies — and comedians tear them aside for laughs. Amid the chuckles, the night has a severe aspect. Most start-up companies fail, so it’s vital to establish and deal with issues early on, the panelists and their start-up founder victims say. And but, brutally sincere suggestions will be surprisingly exhausting to come back by in Silicon Valley.
The San Francisco Bay Space is the nation’s capital of start-up funding — and each deal begins with a pitch like these on show at “Snark Tank.” Within the second quarter of 2024 alone, $18.7 billion in enterprise capital poured into younger firms within the area, based on information agency PitchBook, in contrast with $16.5 billion within the New York space and $2.5 billion within the Los Angeles area.
Regardless of a lot cash streaming in, many younger companies flounder. “What individuals by no means speak about is that Silicon Valley is Dying Valley,” Paul Jurcys, 40, a frequent “Snark Tank” attendee and a start-up founder himself, says after the present. “Many founders come right here to determine that their product has been created already or that their thought is meaningless — or that they don’t have the aggressive edge.”
Along with dealing with mockery, founders courageous sufficient to pitch at “Snark Tank” get coached on the fundamentals, such because the significance of constructing eye contact and holding the microphone near their mouth. And so they get grilled on the massive stuff, reminiscent of: What downside are you making an attempt to unravel? How large is the potential marketplace for this product? And, uh, what’s it that your start-up does precisely?
The present’s vibe resembles a comedy present crossed with a tech trade networking occasion. Attendees, who can ask questions of the founders after the comedians have their enjoyable, sport Patagonia activewear and Wharton Enterprise Faculty lanyards. One viewers member wore a monogrammed jacket proclaiming “IDEA to IPO.”
The occasion was conceived by Elizabeth Swaney, a 39-year-old former recruiter and Olympic skier turned Starbucks barista and humorist.
Swaney mentioned she needs to make tech extra accessible to the typical particular person in hopes of constructing the trade extra inclusive. She finds that different tech occasions the place founders earnestly pitch their companies to potential traders are “informative, however they’re usually dry, one-note occasions that don’t seize individuals’s consideration,” Swaney mentioned in an interview. She now regularly hosts reveals in Los Angeles and New York along with the Bay Space.
Swaney’s golden rule for roasting start-up founders is to present real suggestions on their enterprise — and go away their clothes or look out of it. She admits to creating an exception for the laundry start-up founder who offered whereas sporting a markedly wrinkled outfit.
Panelist AJ Gandhi, a private-equity investor and enterprise capitalist, mentioned the present succeeds by taking one thing “super-boring” and turning it into leisure. “The one enjoyable factor in Silicon Valley is making enjoyable of Silicon Valley,” he mentioned.
The businesses pitched finally month’s present included BioSieve, which is engaged on AI software program aimed toward figuring out drug candidates for biotech firms; PigPug, creator of a brain-wave headset to assist kids management signs of autism and attention-deficit/hyperactivity dysfunction; and Khoda. AI, an AI remedy app.
The panel peppered them with questions and provocations reminiscent of: Your slides on drug discovery are so imprecise, they make a horoscope look extra particular. What would occur to Silicon Valley if autism and ADHD had been eradicated? And: Be sincere, did this pitch deck take you greater than 20 minutes to make?
Even reward was delivered with a twist. “How come you had slides that had been ready and also you rehearsed this and it … was coherent and a very good use of everybody’s time, why?” Heil requested Doga Makiura, founding father of Degas, a microfinance platform for farmers world wide. The viewers lapped it up.
Rebecca Hardberger, a 45-year-old HR skilled, was shocked much less by the jokes than the enterprise mannequin of 1 founder who pitched Applaz, a social community for individuals to put up content material from their cellphone’s notes app. “I see how unhealthy Slacks are — I can solely think about free-range notes,” mentioned Hardberger, who retains a personal tally of all of the occasions her husband is hypocritical, which she has no plans to make public.
Constance Castillo, Applaz’s founder, mentioned she isn’t deterred by “concern reactions” like that. “We wish to make note-sharing to be about being your genuine self,” she mentioned in an interview, including that her platform permits customers to put up anonymously.
A number of founders mentioned in interviews that after taking their lumps from the panel of traders and comedians, they revised their pitch decks. Ahmad Reza Cheraghi, founding father of Khoda. AI, mentioned he’s rethinking his firm’s course based mostly on the suggestions he obtained that evening.
Nevertheless it was Prosina’s Stellar Facilities that attracted probably the most consideration, partially due to her pitch’s dramatic ending.
As she wraps her presentation, a big picture of Hal 9000, the damaging AI from the 1968 movie “2001: Area Odyssey,” seems on the floor-to-ceiling projector display screen.
The ominous reference leads an viewers member to ask a query that’s turning into extra frequent as extra AI merchandise seem like modeled on Hollywood’s dystopian storylines: Have you ever not seen the tip of that film? Prosina swears she isn’t creating an AI that may flip evil. “We’re doing Hal 9000, however a superb one,” she says. “One that really helps.”
Prosina, who has dabbled in stand-up comedy, mentioned she discovered the occasion cathartic — a break from placing forth a picture of being a severe founder who has all of the solutions.
“I simply knew if I did a very unhealthy job, I can flip it right into a joke,” she mentioned. However she additionally received suggestions that led her to replace her slides to make clear the market share she’s hoping to seize and what her start-up could be value.
She’s sticking with calling her space-going chatbot Tom, although. “I’m not altering the title. I’m fairly assured with the title,” Prosina mentioned when The Put up caught up along with her weeks after the occasion. And at the very least one viewers member felt snug with the branding: After the occasion, Prosina was approached by somebody providing a $50,000 angel funding.
As for Swaney, she is within the means of turning “Snark Tank” into greater than only a good evening out. She has filed paperwork to include her personal start-up to run the present, Tech Pitch Roast Comedy LLC, and is working with a lawyer who’s served on the panel to attract up paperwork that may enable panelists to earn fairness within the fledgling enterprise.
Swaney, who has additionally labored as a tv manufacturing assistant and a film stunt double, plans to pitch the present to potential traders and TV executives — which implies she’s engaged on her pitch deck.
What would possibly occur if she had been to current her pitch at considered one of her personal reveals? “It positively wants work,” Swaney mentioned. “I do know I might be roasted lots at my very own present.”
