ETEC 522 – May 2012

Evernote: use it – “yes”; invest – “no”

No, I would not invest in Evernote.

While I was impressed with Evernote’s product and found the CEO/presenter likable, I felt the pitch was directed towards a potential user rather than a potential investor.

If the question was would I want to invite CEO, Phil Libin, to present a more detailed Venture pitch, the answer would be “yes”, but to invest solely on the elevator pitch, the answer would be “no”. The main reason for my decision is that from an investor’s point of view, I have no idea what the CEO wants from me, nor what I will get out of it.

The Content:

Although it is understandable that not all of the criteria listed in “The Content” section of “Deconstructing a Pitch” could be addressed in a minute or less, I didn’t think that this pitch addressed a single one. I did get a sense of Evernote’s service and capability, but there was no mention of where the product fits into the existing market. There is no indication of what problem (pain point) this product is attempting to solve (solution), nor is there any mention of the competition and why Evernote is a better option (differentiation). Most importantly, from an investor’s point of view, Libin fails to address the money; how much will it cost me (the ask) and how much do I get in return.  All I know from the money end is that as a consumer I can enjoy the product for free or pay $5/month for a premium subscription which gives me more storage and “a lot of other goodies” – attractive from a consumer’s point of view, but not from an investor’s.

The Message:

The likability of the CEO simplicity of the message and the usability and capability of the product does provide enough information for me to want to know more. CEO, Phil Libin, appears and knowledgeable and capable when it comes to his product, yet he did not seem confident in selling himself. He appeared to be reading most of his pitch and did not discuss himself or the team behind the product. However, it is the product that is the most intriguing. The simple idea that Evernote functions as an “external brain” is a relevant concept in the digital age where it seems an individual’s own brain lacks the capacity to store all of the information it is bombarded with on a daily basis. The fact that Evernote can be used with a variety of operating systems, browsers and hardware, boosts its feasibility and increases its potential market share.  However, I still don’t know where I would fit into this venture plan as an investor.

Ultimately, I see the value of this product from a consumer’s point of view only. As an investor, I would likely be intrigued by the consumer value, but until I knew more about how I would benefit, the purse strings would remain tied.