90% of Investors Won’t Like You

This week's tip: why to focus on 10% of investors

Preparing and building the right narrative can be one of the most powerful tools to make investors want to invest in your company. However, some founders get caught up in the fear of how their story may be perceived by investors.

When I see founders do this, I see that you:

• Hold back your real thoughts and ideas
• Be vanilla and boring to seem likeable
• Censor certain parts of your business

Now… during my own fundraises I did the exact same thing.

I used to be afraid of not being liked, so I tried to fit in with every investor. Unfortunately, in trying to please everyone, I ended up pleasing no one. I became a forgettable, unconvincing founder with a diluted vision. I wasn't being true to my beliefs.

The fact is, 90% of investors probably won't invest in you. This isn't because you're a bad founder; even the best companies in the world get rejected by most investors. It's just par for the course, and you have to accept that.

Should you hold back on your opinions to avoid offending anyone or losing potential investors?

Absolutely not.

Your goal should be to find YOUR investors, not every single one. You can't build a company that pleases everyone or addresses every possible investor objection. Don't even try.

Instead, be true to your beliefs and find investors who share your vision. This way, you'll speak with more confidence and build the thick skin required to succeed as a founder.

Here’s 2 steps to help you:

Step 1: produce your own unique insights

Most founders have unique insights for why they started your company. I imagine you do too.

For this step we want to focus on what those 3-5 key points on:

• Why you started your own company
• What problems you see in your industry
• Where you think your current industry will end up as if it stays the same

Next, brainstorm how to turn these points into proper thought leadership. Spend 20-30 minutes on each sub-topic, writing your honest thoughts about how you view the world. This will give you insight into how you think about the future and your industry, and why you are focused on solving it.

Step 2: originate what investors need to get excited by you

The first step is to identify the perfect investor for your company and figure out what they need to know in order to invest.

Schedule a 10-20 minute period of focused thinking.

Start by thinking about the type of investor who would instantly understand your vision - the perfect match for you.

Next, consider what would make them believe in your company. What do they already know, and what unique insights can you offer that will excite them?

Finally, make sure you are telling your story in a way that highlights your strengths and appeals to a specific investor, rather than trying to appeal to everyone.

So, trust your gut and share your real thoughts. That's when the good stuff happens during a fundraise.

That's all for today.