"Elevator pitch" is an extremely important concept. It is based on this hypothetical example: After leaving a meeting with a prospect, you enter the elevator. On the elevator, you meet the decision maker who did not attend your meeting. He asks you the purpose of your visit. You have exactly one minute to convince him that your idea is mandatory for his/her organization. (Even in New York's tallest buildings, elevators don't need more than one minute to go from one point to another!) This exact situation may not happen very often, but the example is vital within the American culture of doing business. Your sales talk has to be fluent, concise and straightforward. "Elevator pitch" is important, as it proves that you understand your market, your product, its key features and its benefits. In one minute, you must summarize the business problem that your tool/solution addresses, why your tool is better than the competition, how unique you are, and the return on investment that your customer can expect from it.
If you don't master these essential concepts, you are unlikely to be successful in this tough market.
This explains why venture capitalists believe that "elevator pitch" is so important.