The Founder Institute is an American business incubator headquartered in Silicon Valley with offices in 95 countries. Its mission is to empower communities of talented and motivated people to build successful technology companies around the world. Since 2009, the Founder Institute's structured accelerator programs have helped more than 6,500 entrepreneurs receive funding totaling more than $1.75 billion.

The Founder Institute recommends using the simple one-sentence pitch format, and it a great example of how a company can explain its business simply and effectively:

"My company, [company name], is developing [a defined offering] to help [a target audience] [solve a problem] with [secret sauce]."

The defined offering must be short, simple and understandable for everyone, such as "a mobile application". The defined target audience is the first group of people to whom you will market your offering, e.g. "women between the ages of 25 and 35". The problem needs to be something that everyone understands, e.g. "reduce the time it takes to pay bills". The last component, the secret sauce, adds your unique approach to solving the problem and shows that you are in control of the market, e.g. "by sending automated email alerts based on analysis of highest response times".

The Founder Institute recommends (a) avoiding adjectives, especially superlatives, (b) defining the target market precisely, (c) eliminating buzzwords, acronyms, and jargon, and (d) being brief. In addition, the following should be noted: If you can't describe your business in one sentence, then you don't understand it well enough.