How to clearly articulate product architecture to investors?

洋介 充
洋介 充
Startup ecosystem analyst and advisor with 7 years experience.

Absolutely, and it's crucial. I used to make the mistake of showing investors complex diagrams and talking extensively about tech stack choices, only to end up talking until I was hoarse while they remained completely lost.

Later, I realized you need to switch channels. Remember one core principle: Investors don't understand technology, but they understand business. So, every word you say must connect to the "business" they care about.

Don't talk to them about "microservices," "containerization," "high concurrency," or "multi-active architecture." The moment you utter these terms, their minds will shut down.

You should talk like this, using "plain language" they can understand:

1. Use the house-building analogy (this is the most effective one):

  • Don't say: "We adopted an advanced microservices architecture, with each service independently deployed on a K8s cluster."
  • Say instead: "Our product is like a set of Lego bricks. Each feature is an independent brick. This approach offers three huge benefits:
    • First, faster development: When the market demands a new feature, we just build a small new brick and plug it in. This makes us several times faster than our competitors.
    • Second, system stability: Even if the 'user login' brick suddenly breaks, the 'online payment' brick will continue to function, ensuring the entire business doesn't grind to a halt.
    • Third, cost savings: If user numbers surge in the future, we don't need to upgrade the entire system. We just add more resources to the specific bricks experiencing high traffic, significantly cutting down costs."

2. Translate technical advantages into business advantages:

  • Technical "high concurrency handling capability" -> Translate to -> "Our system can easily handle millions, even tens of millions, of concurrent users in the future. It can fully support our envisioned business scale and won't crash due to rapid user growth."
  • Technical "data security solution" -> Translate to -> "We have a bank-grade security system to protect user data, which can prevent huge losses and legal risks from hacker attacks, making users feel secure."
  • Technical "rapid iteration" -> Translate to -> "Our 'kitchen' (backend) is designed to be extremely flexible, allowing us to launch new 'dishes' (features) every week, enabling quick experimentation and rapid response to market changes."

3. Prepare two sets of materials:

  • One set is "for the CEO": This is the plain language mentioned above, accompanied by an extremely simple diagram with just a few large blocks. Each block should be labeled with business names like "User System" or "Order System," not technical terms. The purpose of this diagram is to make them feel, "Hmm, very clear, not complicated."
  • The other set is "for the CTO": This is where you present your complex architectural diagrams, tech stack choices, and deployment plans. Only when their technical advisor conducts due diligence (DD) should you bring out this material and engage in a professional discussion with them.

In summary:

In front of investors, you are not an engineer; you are an entrepreneur "using technology to realize a business blueprint." Your task is not to "popularize technology," but to "prove that your technology can support a profitable, scalable, and stable business."

Explaining complex things clearly with simple analogies is a powerful skill in itself, even more important than writing good code when it comes to fundraising.