Raising Investment? Don't underestimate the Importance of Telling a Good Story
To get investors onboard with your venture and entice them to want to know more, you need to tell a strong, compelling and exciting story.
Your objective should be to create an emotional connection with the investor, just as much as it is to present a commercially viable investment opportunity.
Reshma Sohoni, Founding Partner of Seedcamp, goes a step further in this blog post by saying "being a great story teller is what will separate you from all the other startups fighting for attention and investment in a crowded space”. Indeed, an investor is never considering your company in isolation, but rather alongside ten other companies, that are probably at least just as viable as your own. So you cannot only be great, you must be and do better than all the others. If investors buy into your story, you are more likely to land an investor who is emotionally and personally invested in your success. They picture themselves in that story with you, and want to play a key part in it going forward. Investment is an emotional decision as much as a financial one - investors are human too!
The investment documents you will need to prepare for your round need to be embedded into this story, and a common language and style should be used across all of them. An investor will broadly look at four key elements of your story: the people, the product, the market and the deal itself. She / he is often thinking about reasons not to invest, so you need to explicitly and implicitly keep bringing them back to this exciting story, from when you pitch to during the due diligence process, and all the way through until close.
For tips and guidelines on how to tell your story in these four key areas, keep an eye out for our resources page.