In a [[three-act narrative]] structure, the "setup" is the initial phase where the foundation of the story is established. It introduces the main characters, setting, and central conflict or problem that needs to be addressed. This phase is important in a [[business pitch]] because it captures the audience's attention and provides essential background information needed to understand and engage with the proposal. By clearly defining the problem or opportunity at hand, along with relevant context, the setup sets expectations and prepares potential investors or stakeholders for why your solution or product is necessary and valuable. A well-crafted setup can create interest and establish a connection with your audience, making them more receptive to subsequent details about how you plan to address the identified issue in later acts of your pitch.